Cash America 2012 Annual Report Download - page 116

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Net cash used in investing activities increased $104.9 million, or 27.8%, from $377.1 million for 2010 to $482.0
million for 2011. The combination of consumer loans made or purchased net of consumer loans repaid increased the
Company’s use of cash by $80.0 million when compared to 2010, primarily due to increases in consumer loans made or
purchased in the foreign markets of the Company’s e-commerce segment. Cash used in pawn lending activities
increased $41.7 million due to growth in the Company’s domestic pawn portfolio.
During 2011, cash used for acquisition activities decreased by $32.7 million, or 39.8%, to $49.5 million in 2011
due to a lower aggregate amount paid for acquisitions in 2011 compared to $82.3 million in 2010. Details of the
acquisitions that occurred in 2011 and 2010 are explained below.
During 2011, the Company acquired a seven-store chain of pawn lending locations located in Tucson, Flagstaff
and Yuma, Arizona. The Company paid aggregate consideration of $53.6 million, which was funded with borrowings
under the Company’s line of credit, including $49.3 million that was paid during 2011 and $4.3 million that was paid in
2012 following the receipt of applicable licensing and regulatory approvals. The goodwill related to this acquisition was
$26.7 million.
During 2010, the Company acquired a 39-store chain of pawn lending locations in Washington and Arizona
under the names “Maxit” and “Pawn X-Change.” The consideration for the acquisition included cash consideration of
approximately $58.2 million, which was funded with borrowings under the Company's line of credit, and 366,097 shares
of the Company's common stock, with a fair value of $10.9 million as of the closing date. The goodwill related to this
acquisition was $26.2 million.
Additionally, in 2010, the Company made supplemental payments of approximately $21.2 million related to the
Debit Plus, LLC (formerly known as Primary Innovations) acquisition that occurred in 2008. See “Item 8. Financial
Statements and Supplementary Data—Note 3” for further discussion of these acquisitions.
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.
Management anticipates that expenditures for property and equipment related to its domestic and foreign
operations for 2013 will be between $60 million and $70 million, excluding acquisitions or retail services locations,
primarily for the remodeling of stores, facility upgrades, technology infrastructure and the establishment of
approximately 20 to 25 new retail services locations.
Cash Flows from Financing Activities
Net cash provided by financing activities decreased $44.6 million, or 86.4%, from $51.6 million of cash
provided in 2011 to $7.0 million provided in 2012. This was primarily due to a $41.8 million decrease in the amount of
borrowings, net of repayments and debt issuance costs, in 2012 compared to 2011. During 2012, the Company used $4.6
million more in 2012 than 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. Additionally, the Company
used $5.6 million of cash for the purchase of the outstanding shares of minority interest shareholders associated with the
Company’s Mexico-based pawn operations. See “General—Recent Developments—Reorganization of Mexico-based
Pawn Operations and Purchase of Noncontrolling Interest” for additional information.
On August 28, 2012, the Company issued and sold a total of $52.0 million in long-term notes in two series,
including $47.0 million aggregate principal amount of its 6.00% Series A Senior Notes due August 28, 2019 (the “Series
A Notes”) and $5.0 million aggregate principal amount of its 6.58% Series B Senior Notes due August 28, 2022 (the