Cash America 2012 Annual Report Download - page 114

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Cash Flows
The Company’s cash flows and other key indicators of liquidity are summarized as follows (dollars in
thousands):
Year Ended December 31,
2012 2011 2010
Cash flows provided by operating activities $518,281 $454,004 $359,160
Cash flows used in investing activities
Pawn loans $2,449 $(54,912) $(13,253)
Consumer loans (375,032) (297,029) (217,022)
Acquisitions (78,217) (49,539) (82,263)
Property and equipment additions (79,399) (75,049) (59,697)
Proceeds from sale of assets 5,471 --
Investment in equity securities (1,000) (5,000) (5,652)
Other investing (926) (515) 822
Total cash flows used in investing activities $(526,654) $(482,044) $(377,065)
Cash flows provided by financing activities $7,028 $51,643 $10,222
Working capital $710,566 $644,891 $491,298
Current ratio 4.8 x 4.8 x 4.8 x
Merchandise turnover 3.0 x 3.1 x 3.2 x
Total debt to adjusted EBITDA ratio(a) 1.8 x 1.8 x 1.8 x

(
a
)
Non-GAAP measure. See “Overview―Adjusted EBITDA” section for a reconciliation of adjusted EBITDA to net income attributable to the
Company.
Cash Flows from Operating Activities
Net cash provided by operating activities increased $64.3 million, or 14.2%, from $454.0 million in 2011 to
$518.3 million in 2012. A significant component of the increase in net cash provided by operating activities during 2012
compared to 2011 was a $90.6 million increase in the consumer loan loss provision, a non-cash expense, primarily as a
result of loan growth in the e-commerce segment which is reflected in investing activities. In addition, depreciation and
amortization expenses, which are also non-cash expenses, increased $21.3 million, primarily due to the disposition
activities related to the Mexico Reorganization, the implementation of the Company’s domestic point-of-sale system,
which was placed in service in July 2011, and the investments in retail services locations in 2012 and 2011. Also, a
decrease in merchandise purchased from customers and other third parties increased cash provided by operating
activities by $17.4 million compared to 2011. The increase in cash provided by operating activities was partially offset
by decreases in cash provided by current and deferred income taxes. Prior year results were positively impacted by a
$12.3 million and $25.6 million current and deferred tax benefit, respectively, which related to lower income tax
payments in 2011, resulting from a change in the timing of tax deductions for internally-developed software costs as
well as the impact of increased bonus depreciation rules in effect for all of 2011. The increase in cash flows from
operating activities was also offset by a decrease of $33.5 million in net income.
The Company recognized $28.9 million of charges in 2012 related to the Mexico Reorganization, which did not
have a material impact on the Company’s cash flows from operations. The primary components of these charges are
reflected as a $12.6 million increase in depreciation and amortization and a $7.2 million decrease to deferred income
taxes, both of which are non-cash items. The remaining charges are reflected in changes to other operating assets and