Cash America 2011 Annual Report Download - page 106

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30, 2012, with each payment, if any, due approximately 45 days after the measurement date. No additional
supplemental payment was accrued for the December 31, 2011 measurement date based on the amounts previously paid
in connection with the initial purchase price and the previous supplemental payments. The total of all payments to the
sellers cannot exceed $50.0 million pursuant to the terms of the asset purchase agreement. All supplemental payments
were accounted for as goodwill. Through December 31, 2011, the Company has made supplemental payments totaling
$23.9 million. See “Item 8. Financial Statements and Supplementary Data—Note 3.” In addition to the supplemental
payments described above, during 2009, the Company also made supplemental payments of approximately $39.7
million, in connection with the acquisitions related to the e-commerce segment.
During 2011, expenditures for property and equipment used $75.0 million of cash, compared to $59.7 million in
2010. The $15.3 million additional use of cash primarily related to increased expenditures at the Company’s retail
services locations, including the remodeling of existing locations, the relocation of other retail services locations and
point-of-sale system enhancements in the Company’s domestic and foreign retail services locations. During 2010,
expenditures for property and equipment used $15.6 million of additional cash compared to 2009 cash primarily related
to increased expenditures at the Company’s retail services locations, including the remodeling of existing locations, the
relocation of other retail services locations and point of sale system enhancements in the Company’s domestic and
foreign retail services locations.
Management anticipates that expenditures for property and equipment for 2012 will be between $60.0 million
and $70.0 million, primarily for the remodeling of selected operating units and for the establishment of approximately
35 to 40 new retail services locations.
Cash flows from financing activities. Net cash provided by financing activities increased $41.4 million, or
405.2%, from $10.2 million for the year ended December 31, 2010 to $51.6 million for the year ended December 31,
2011. During 2011, the Company’s borrowings, net of repayments and debt issuance costs, were $50.2 million greater
than in 2010. Net cash provided by financing activities in 2011 included proceeds of $50.0 million for long-term debt
issued by the Company in March 2011 (as more fully described below) and $65.8 million of net proceeds drawn under
its line of credit. The Company made debt payments of $38.1 million during 2011 based on the terms of certain note
obligations. In addition, the Company used $6.0 million more in 2011 for the repurchase of shares of Company
common stock through open market transactions, pursuant to a 2011 authorization by the Board of Directors of the
Company, and through the repurchase of shares of common stock for tax payments related to stock based compensation.
On March 30, 2011, the Company entered into a new credit agreement for up to $330.0 million of credit with a
group of commercial banks (the “Original Credit Agreement”). On November 29, 2011, the Company amended the
Credit Agreement, to increase the amount available by $100.0 million, to $430.0 million (the “Credit Agreement”). The
Credit Agreement consists of a $380.0 million line of credit, which includes the ability to borrow up to $50.0 million in
specified foreign currencies or U.S. dollars and matures on March 31, 2015, and a $50.0 million term loan facility. The
line of credit commitment amount will decrease by $100.0 million, to $280.0 million, on the earlier of May 29, 2013 or
the second business day following the closing of the initial public offering of common stock of Enova if it generates at
least $350.0 million in net proceeds. Beginning on March 31, 2012, the 2015 Variable Rate Notes require quarterly
installment payments of $2.1 million, with any outstanding principal remaining due at maturity on March 31, 2015. See
“Item 8. Financial Statements and Supplementary Data—Note 11 and Note 22.”
In conjunction with the entry into the Credit Agreement, the Company repaid all outstanding revolving credit
loans under its $300.0 million domestic line of credit due 2012 and its variable rate senior unsecured note due 2012 with
proceeds of the Credit Agreement.
During 2010, net cash flows provided by financing activities increased $23.0 million, or 180.1%, from a use of
$12.8 million for the year ended December 31, 2009 to a source of $10.2 million for the year ended December 31, 2010.
During 2010, the Company’s net borrowings, net of debt issuance costs, were $24.8 million greater than in 2009. Net
cash provided by financing activities in 2010 included proceeds of $25.0 million for long-term debt issued by the
Company in January 2010 (as more fully described below) and $25.4 million drawn under its line of credit. Scheduled