Cash America 2014 Annual Report Download - page 88

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73
Cash Flows from Continuing Financing Activities
2014 comparison to 2013
Net cash flows from continuing financing activities decreased by $670.8 million from 2013 to 2014, from a
source of cash of $89.3 million in 2013 to a use of cash of $581.5 million in 2014. The significant components of
the change included:
•a $424.9 million increase in cash used for several debt reduction activities in 2014, including prepayment in
its entirety of the Company’s Private Placement Notes, the purchase of a portion of the Company’s
outstanding 2018 Senior Notes, payments made in connection with the repurchase of a portion of the 2029
Convertible Notes and the conversion and redemption of the remainder of the 2029 Convertible Notes and a
reduction of the outstanding indebtedness under the Company’s Domestic and Multi-currency Line of
Credit; and
•a $300.0 million decrease in cash received from the issuance in 2013 of the 2018 Senior Notes, net of
payments for debt issuance costs, as described further below.
Offset by:
•a $44.7 million decrease in cash used for repurchases of shares of Company common stock primarily
through open market transactions. See “Share Repurchases” below for additional information related to
share repurchase activity.
As of December 31, 2014, the Company had no borrowings outstanding on its Domestic and Multi-currency
Line of Credit, and it had $280.0 million of available borrowings. Management believes that the borrowings
available under the Company’s Domestic and Multi-currency Line of Credit, anticipated cash generated from
operations and current working capital of $658.9 million is sufficient to meet the Company’s anticipated capital
requirements for its business. See Note 11 of the consolidated financial statements for additional information
regarding the Company’s debt instruments, including the Domestic and Multi-currency Line of Credit, which was
amended in 2014 and 2013.
The Company had standby letters of credit of $12.0 million issued under its $20.0 million standby Letter of
Credit Facility as of December 31, 2014.
2013 comparison to 2012
Net cash provided by continuing financing activities increased $82.3 million, from $7.0 million in 2012 to
$89.3 million in 2013.
The significant components of the increase included:
•a net increase in the proceeds received from the issuance of long-term debt of $248.0 million, mainly from
the issuance and sale of $300.0 million of 2018 Senior Notes in May of 2013, which is discussed in greater
detail below.
Offset by:
•a $145.2 million increase in cash used in 2013 for payments and repurchases of long-term debt, including
the repayment of outstanding balances under the Company’s Domestic and Multi-currency Line of Credit,
the repurchase, through privately negotiated transactions, of a portion of the 2029 Convertible Notes, and
for debt issuance costs incurred in conjunction with the issuance of the 2018 Senior Notes and the
amendments to the Domestic and Multi-currency Line of Credit, as discussed below; and