Green Dot 2014 Annual Report Download - page 50

working capital and capital expenditure requirements for at least the next year. Thereafter, we may need to raise
additional funds through public or private financings or borrowings. Any additional financing we require may not be
available on terms that are favorable to us, or at all. If we raise additional funds through the issuance of equity or
convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we
issue could have rights, preferences and privileges superior to those of holders of our Class„A common stock and our
Series A convertible junior participating non-cumulative perpetual preferred stock. No assurance can be given that
additional financing will be available or that, if available, such financing can be obtained on terms favorable to our
stockholders and us.
Cash Flows from Operating Activities
Our $69.0 million of net cash provided by operating activities in the year ended December„31, 2014 principally
resulted from $42.7 million of net income, adjusted for certain non-cash operating expenses of $67.3 million, offset by
a decrease of $48.7 million in amounts due to card issuing banks for overdrawn accounts, primarily related to payments
to GE Capital Retail Bank to settle our liability associated with overdrawn cardholder account balances. Our $122.5
million of net cash provided by operating activities in the year ended December„31, 2013 principally resulted from
$34.0 million of net income, adjusted for certain non-cash operating expenses of $61.9 million and an increase in
accounts payable and accrued liabilities of $26.9 million related primarily to the timing of escheatment and refund
liabilities. Our $102.0 million of net cash provided by operating activities in the year ended December„31, 2012 principally
resulted from $47.2 million of net income, adjusted for certain non-cash operating expenses of $46.8 million.
Cash Flows from Investing Activities
Our $187.3 million of net cash used in investing activities in the year ended December„31, 2014 reflects payments
for business acquisitions of $227.0 million, net of cash acquired, and payments for acquisition of property and equipment
of purchases of $39.3 million, partially offset by proceeds from sales and maturities of available-for-sale investment
securities, net of purchases, of $77.2 million. Our $53.4 million of net cash used in investing activities in the year ended
December„31, 2013 reflects payments for acquisition of property and equipment of purchases of $35.7 million and
purchases of available-for-sale investment securities, net of sales and maturities, of $16.0 million. Our $210.3 million
of net cash used in investing activities in the year ended December„31, 2012 reflects purchases of available-for-sale
investment securities, net of sales and maturities, of $152.8 million, payments for acquisition of property and equipment
of $40.4 million, net payments to acquire Loopt for $33.4 million, partially offset by a decrease in restricted cash of
$12.3 million.
Cash Flows from Financing Activities
Our $419.4 million of net cash provided by financing activities in the year ended December„31, 2014 was primarily
the result of increases of $345.8 million of deposits to customers associated with our GPR card program, proceeds of
$150.0 million associated with our term loan and proceeds and excess tax benefits of $10.7 million associated with
equity award activity. These were offset by decreases of $79.4 million in obligations to customers. Our $57.9 million
of net cash provided by financing activities in the year ended December„31, 2013 was primarily the result of $21.1
million of deposits and $19.6 million of obligations to customers associated with our GPR card program, and proceeds
and excess tax benefits of $17.2 million associated with equity award activities. Our $179.5 million of net cash provided
by financing activities for the year ended December„31, 2012 was the result of $159.5 million of deposits and $13.7
million of obligations to customers we assumed as part of the transition of all outstanding customer deposits associated
with our GPR card program with Synovus Bank to our subsidiary bank, and proceeds and excess tax benefits of $6.3
million associated with equity award activities.
Commitments
We anticipate that we will continue to purchase property and equipment as necessary in the normal course of our
business. The amount and timing of these purchases and the related cash outflows in future periods is difficult to
predict and is dependent on a number of factors including the hiring of employees, the rate of change of computer
hardware and software used in our business and our business outlook. During 2015, we intend to continue to invest
in new products and programs, new features for our existing products and IT infrastructure to scale and operate
effectively to meet our strategic objectives.
We have used cash to acquire businesses and technologies and we anticipate that we may continue to do so in
the future. The nature of these transactions makes it difficult to predict the amount and timing of such cash requirements.
We may also be required to raise additional financing to complete future acquisitions.
Additionally, we anticipate making ongoing cash contributions to our subsidiary bank, Green Dot Bank, to maintain
its capital, leverage and other financial commitments at levels we have agreed to with our regulators. For example, in
connection with the transition of our card issuing program with GE Capital Retail Bank to Green Dot Bank in February
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