Green Dot 2010 Annual Report Download - page 60

Cash Flows from Operating Activities
Our $83.5 million of net cash provided by operating activities in the year ended December 31, 2010
principally resulted from $42.2 million of net income and adjustments for non-cash operating expenses of
$49.2 million.
Our $26.1 million of net cash provided by operating activities in the five months ended December 31,
2009 resulted from $13.7 million of net income and adjustments for non-cash operating expenses of
$22.1 million.
Our $35.3 million of net cash provided by operating activities in fiscal 2009 resulted from $37.2 million
of net income and adjustments for non-cash operating expenses of $28.3 million, offset by settlement
payments to banks that issue our cards amounts due to them for overdrawn card accounts. During fiscal
2009, we amended our agreement with one of the banks that issue our cards, expediting the settlement
timing of these amounts.
Our $35.0 million of net cash provided by operating activities in fiscal 2008 resulted from $17.3 million
of net income and adjustments for non-cash operating expenses of $21.3 million.
Cash Flows from Investing Activities
Our $3.2 million of net cash used in investing activities in the year ended December 31, 2010
consisted of payments for acquisition of property and equipment of $13.5 million partially offset by a
$10.2 million decrease in restricted cash. Our net cash used in investing activities in the five months ended
December 31, 2009 consisted almost entirely of payments for acquisition of property and equipment of
$5.1 million. Our net cash used in investing activities in fiscal 2009 consisted of an increase in restricted
cash of $13.0 million and payments for acquisition of property and equipment of $6.4 million. In fiscal 2009,
we renewed our line of credit, which is used to fund timing differences between funds remitted by our retail
distributors to the banks that issue our cards and funds utilized by our cardholders, and elected to increase
our restricted deposits to $15.0 million at the lending institution as collateral in order to reduce the
commitment fees we would incur on this line of credit.
Cash Flows from Financing Activities
Our $30.9 million of net cash provided by financing activities in the year ended December 31, 2010
was the result of excess tax benefits and proceeds from the exercise of stock options and warrants in
connection with our public offerings. Our $8.7 million of net cash provided by financing activities for the five
months ended December 31, 2009 was the result of the repayment to us of $5.9 million of related party
notes receivable and excess tax benefits and proceeds from the exercise of stock options for an aggregate
of $2.8 million. Our $28.6 million of net cash used in financing activities in fiscal 2009 was primarily
associated with the redemption in full of our Series D redeemable preferred stock. We entered into an
agreement in December 2008 with the sole holder of these securities to pay $39.2 million for an early
redemption of all outstanding shares of our Series D redeemable preferred stock and the purchase of a call
option on a common stock warrant held by this stockholder. In June 2009, we exercised the call option on
the warrant for $2.0 million. We also received proceeds of $13.0 million related to the issuance of our
Series C-2 preferred stock in fiscal 2009. Our $3.3 million of net cash used in financing activities in fiscal
2008 resulted from net repayments on our line of credit of $2.5 million and principal payments on our short-
term debt of $2.4 million, offset by excess tax benefits and proceeds from the exercise of stock options for
an aggregate of $1.7 million.
Contractual Obligations and Commitments
Our contractual commitments will have an impact on our future liquidity. The following table summarizes
our contractual obligations, including both on- and off-balance sheet transactions that represent material
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