Cash America 2014 Annual Report Download - page 89

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74
•a $22.5 million increase in cash used in 2013 from 2012 for repurchases of shares of Company common
stock, primarily through open market transactions. The Company repurchased $47.6 million of the
Company’s common shares in 2013. See “Share Repurchases” below for additional information related to
share repurchase activity.
On May 15, 2013, the Company issued and sold the 2018 Senior Notes for an aggregate principal amount of
$300.0 million. The 2018 Senior Notes bear interest at a rate of 5.75% per year on the principal amount, payable
semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2013. The 2018
Senior Notes will mature on May 15, 2018. The 2018 Senior Notes were sold to qualified institutional buyers in
accordance with Rule 144A under the Securities Act, and outside the United States pursuant to Regulation S under
the Securities Act. The 2018 Senior Notes are senior unsecured debt obligations of the Company. The 2018 Senior
Notes are guaranteed by all of the Company’s domestic subsidiaries and one foreign subsidiary. As required by a
registration rights agreement that the Company entered into with the initial purchasers when the 2018 Senior Notes
were issued, the Company completed an exchange offer with respect to the 2018 Senior Notes in January 2014. All
of the unregistered 2018 Senior Notes have been exchanged for identical new notes registered under the Securities
Act.
Net Cash Flows from Discontinued Operations
2014 comparison to 2013
Net cash flows provided by discontinued operations increased by $51.2 million from 2013 to 2014,
primarily due to:
•a $143.0 million decrease in cash used by investing activities in 2014, mainly as a result of a decrease in
cash used for consumer loan activities as a result of decreased loans written and increased payments from
customers and collections on consumer loans.
Offset by:
•a $39.8 million increase in cash used by financing activities, primarily due to payments of $431.0 million
made by Enova to repay the Enova Note Receivable and for aggregate dividend payments of $122.4 million
to the Company in 2014. These uses of cash were partially offset by cash proceeds from the issuance of
$500.0 million of senior unsecured notes by Enova in 2014 (see “Interest Expense and Interest Income”
above); and
•a $52.0 million decrease in cash provided by operating activities, primarily due to a decrease in the
consumer loan loss provision from 2013 to 2014, a non-cash item.
2013 comparison to 2012
Net cash flows provided by discontinued operations increased by $4.4 million from 2012 to 2013, primarily due to:
•a $62.9 million increase in cash provided by operating activities in 2013, primarily due to higher net income
in 2013 and an increase in the consumer loan loss provision, a non-cash item in 2013.
Offset by:
•a $38.5 million increase in cash used by investing activities, primarily due to additional cash used for
consumer loan activities in 2013 compared to 2012 as a result of growth in Enova’s consumer loan
portfolio; and
•a $19.9 million decrease in cash used for financing activities as a result of lower payments by Enova on the
Enova Note Receivable.