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54
GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
Five Months
Ended
December 31,
2009
Year Ended
July 31, 20092011 2010
(In thousands)
Operating activities
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52,083 $ 42,232 13,663 37,163
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,330 7,588 2,254 4,593
Provision for uncollectible overdrawn accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,562 46,093 11,218 22,548
Employee stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,524 7,256 6,782 2,468
Stock-based retailer incentive compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,337 13,369 — —
Amortization of discount on available-for-sale investment securities . . . . . . . . . . . . . . 251 ———
Provision (benefit) for uncollectible trade receivables. . . . . . . . . . . . . . . . . . . . . . . . . . 455 (13) 60 61
Impairment of capitalized software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397 409 77 405
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 (704) 3,530 (1,731)
Excess tax benefits from exercise of options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,951) (24,842) (1,866)—
Changes in operating assets and liabilities:
Settlement assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,387) 22,601 (6,999) (18,125)
Accounts receivable, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (70,510) (51,754) (20,241) (29,853)
Prepaid expenses and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,838) (1,042) (919)(903)
Deferred expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,100) (1,304) (5,548)2,297
Accounts payable and accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,489) 16,042 8,135 3,170
Settlement obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,387 (22,601) 6,999 18,125
Amounts due issuing bank for overdrawn accounts . . . . . . . . . . . . . . . . . . . . . . . . 7,085 11,646 5,153 (5,309)
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,261 2,113 7,603 (978)
Income tax receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,403 16,414 (3,780)1,366
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,051 83,503 26,121 35,297
Investing activities
Purchases of available-for-sale investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . (45,056) ———
Proceeds from maturities of available-for-sale investment securities . . . . . . . . . . . . . . . . . 20,152 ———
(Increase) decrease in restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,791) 10,246 (14) (13,039)
Payments for acquisition of property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,076) (13,459) (5,049)(6,361)
Net increase in loans made to bank customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 ———
Acquisition of Bonneville Bancorp, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . 5,085 ———
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50,441) (3,213) (5,063) (19,400)
Financing activities
Borrowings from line of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— — 12,404
Repayments on line of credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— — (12,404)
Proceeds from exercise of options and warrants and issuance of ESPP shares . . . . . . . . 6,138 6,068 946 110
Excess tax benefits from exercise of options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,951 24,842 1,866 —
Net increase in deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,231 ———
Exercise of call option on warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ———
(1,958)
Issuance of preferred shares and freestanding warrant . . . . . . . . . . . . . . . . . . . . . . . . . . . —— — 13,000
Redemption of preferred and common shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— — (39,770)
Proceeds from the repayment of related party notes receivable. . . . . . . . . . . . . . . . . . . . . ——5,869 —
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,320 30,910 8,681 (28,618)
Net increase (decrease) in unrestricted cash and cash equivalents . . . . . . . . . . . . . . . . . . 57,930 111,200 29,739 (12,721)
Unrestricted cash and cash equivalents, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . 167,503 56,303 26,564 39,285
Unrestricted cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 225,433 $ 167,503 $ 56,303 $ 26,564
Cash paid for interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $108$42$—$ 1
Cash paid for income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,291 $ 14,282 $ 10,032 $ 27,403
See notes to consolidated financial statements