Cash America 2013 Annual Report Download - page 123

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98
Cash Flows
The Company’s cash flows and other key indicators of liquidity are summarized as follows (dollars in
thousands):
Year Ended December 31,
2013 2012 2011
Cash provided by operating activities $586,430 $518,281 $454,004
Cash used in investing activities
Pawn activities $(33,564) $2,449 $(54,912)
Consumer loans (420,488) (375,032) (297,029)
Acquisitions (165,284) (78,217) (49,539)
Property and equipment additions (61,272) (79,399) (75,049)
Proceeds from sale of marketable securities 6,616 --
Proceeds from sale of assets -5,471 -
Investment in equity securities -(1,000) (5,000)
Other investing 776 (926) (515)
Total cash used in investing activities (673,216) (526,654) (482,044)
Cash provided by financing activities $89,289 $7,028 $51,643
Working capital $862,067 $710,566 $644,891
Current ratio 5.8 x 4.8 x 4.8 x
Merchandise turnover 2.4 x 3.0 x 3.1 x
Total debt to adjusted EBITDA ratio(a) 2.4 x 1.8 x 1.8 x
(
a
)
Non-GAAP measure. See “Overview―Non-GAAP Disclosure―Adjusted EBITDA” section for a reconciliation of adjusted EBITDA to net
income attributable to the Company.
Cash Flows from Operating Activities
2013 comparison to 2012
Net cash provided by operating activities increased $68.1 million, or 13.1%, from $518.3 million in 2012 to
$586.4 million in 2013. The significant components of the increase in net cash provided by operating activities included
a $41.2 million increase in net income and a $35.0 million increase in the consumer loan loss provision, a non-cash
expense, primarily as a result of consumer loan growth in the e-commerce segment. Changes in accounts payable and
accrued expenses contributed a net $2.6 million increase in cash provided by operating activities, which was primarily
due to an increase of $18.0 million, partially offset by decreases of $15.4 million. The increase of $18.0 million is due to
the 2013 Litigation Settlement, which the Company expects to pay during the first quarter of 2014. The decreases of
$15.4 million are primarily due to; $6.4 million of payments made to customers and $1.7 million of expenses paid in
connection with the Ohio Reimbursement Program; $5.0 million from the Ohio Adjustment; and $2.3 million of other
changes in accounts payable and accrued expenses. Another component of the decrease in cash provided by operating
activities was an increase in restricted cash due to the establishment of an $8.0 million restricted cash fund in 2013 in
connection with the Company’s Consent Order with the CFPB, which the Company is required to maintain until the
second quarter of 2014. See “Recent Developments—Regulatory, Litigation and Other Developments” for further
information about the 2013 Litigation Settlement, the Ohio Reimbursement Program and the CFPB Consent Order.
Management believes that its expected cash flows from operations and available cash balances and borrowings
will be sufficient to fund the Company’s operating liquidity needs.