Cash America 2014 Annual Report Download - page 87

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•a $21.5 million increase in cash related to the proceeds from the divestitures of the Company’s Mexico-
based pawn operations and five Colorado pawn lending locations in 2014; and
•an $8.5 million decrease in cash used for purchases of property and equipment.
Offset by:
•a $9.4 million increase in cash used by pawn activities, primarily due to a decrease in the disposition of
merchandise through commercial sales of gold resulting in an increase in merchandise available for
disposition in retail services locations, which is a result of the Company’s strategy to emphasize the sale of
gold through retail channels rather than commercial channels.
Management anticipates that expenditures for property and equipment for 2015 will be between $20 million
and $30 million, excluding acquisitions of stores, primarily for the remodeling of stores, facility upgrades,
technology infrastructure and the establishment of up to five new locations. The Company has agreed, pursuant to a
private letter ruling received from the IRS to sell its retained shares of Enova common stock (other than shares
retained for delivery under the Company’s long-term incentive plans) within two years following the Enova Spin-
off, which will increase cash flows from continuing investing activities. See “Recent Developments—Enova Spin-
off” for additional information.
2013 comparison to 2012
Net cash used in continuing investing activities increased $88.1 million, or 60.8%, from $144.9 million in
2012 to $233.0 million in 2013.
The significant components of the increase included:
•an $87.2 million increase in cash used for acquisitions, as described below; and
•a $36.0 million increase in cash used by pawn activities, primarily due to a decrease in the disposition of
merchandise through commercial sales of gold resulting in an increase in merchandise available for
disposition in retail services locations, which is a result of the Company’s strategy to emphasize the sale of
gold through retail channels rather than commercial channels.
Offset by:
•a $19.9 million increase in proceeds for the partial paydown of the Enova Note Receivable; and
•a $15.1 million decrease in expenditures for purchases and equipment, primarily due to decreased
expenditures in 2013 for remodeling of existing locations.
The Company completed the acquisition of 76 domestic pawn lending locations in 2013, including the
acquisition of a chain of pawn lending locations in Texas that included 41 operating locations and the rights to one
additional Texas pawn lending location (that was under construction but not open for business at the time of the
acquisition) and the acquisition of a 34-store chain of pawn lending locations in Georgia and North Carolina (31
locations in Georgia and three locations in North Carolina). Consideration for these acquisitions was paid in cash
and funded through available cash and the Company’s Domestic and Multi-currency Line of Credit.