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GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2014 2013 2012
(In thousands)
Operating activities
Net income $42,693 $34,040 $47,219
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 36,984 27,099 18,131
Provision for uncollectible overdrawn accounts 38,273 47,273 62,345
Employee stock-based compensation 20,329 14,703 12,734
Stock-based retailer incentive compensation 8,932 8,722 8,251
Amortization of premium on available-for-sale investment securities 1,105 778 1,188
Net realized gains on investment securities (44)(13)(11)
Recovery of uncollectible trade receivables (26)(23)(359)
Change in fair value of contingent consideration (698)— —
Amortization of deferred financing costs 289 — —
Impairment of capitalized software —5,216 1,029
Deferred income tax expense 463 5,464 5,792
Excess tax benefits from exercise of options (3,945)(2,748)(2,738)
Changes in operating assets and liabilities:
Accounts receivable, net (30,453)(48,175)(66,099)
Prepaid expenses and other assets 1,086 5,069 (21,325)
Deferred expenses (1,887)(2,929)94
Accounts payable and other accrued liabilities 925 26,915 31,475
Amounts due issuing bank for overdrawn accounts (48,706)(794)7,571
Deferred revenue (319)5,260 (1,962)
Income tax receivable 3,974 (3,349)(1,307)
Net cash provided by operating activities 68,975 122,508 102,028
Investing activities
Purchases of available-for-sale investment securities (212,446)(274,072)(271,869)
Proceeds from maturities of available-for-sale securities 153,265 173,135 37,563
Proceeds from sales of available-for-sale securities 136,425 84,969 81,474
Decrease (increase) in restricted cash 1,360 (2,336)12,292
Payments for acquisition of property and equipment (39,338)(35,742)(40,441)
Net principal collections on loans 352 650 2,484
Acquisitions, net of cash acquired (226,964)— (31,823)
Net cash used in investing activities (187,346)(53,396)(210,320)
Financing activities
Borrowings from note payable 150,000 — —
Proceeds from exercise of options 6,736 14,425 3,550
Excess tax benefits from exercise of options 3,945 2,748 2,738
Net increase in deposits 345,821 21,129 159,494
Net (decrease) increase in obligations to customers (79,442)19,616 13,668
Deferred financing costs (7,672)— —
Net cash provided by financing activities 419,388 57,918 179,450
Net increase in unrestricted cash, cash equivalents, and federal funds sold 301,017 127,030 71,158
Unrestricted cash, cash equivalents, and federal funds sold, beginning of
year 423,621 296,591 225,433
Unrestricted cash, cash equivalents, and federal funds sold, end of period $724,638 $423,621 $296,591
Cash paid for interest $1,276 $73 $98
Cash paid for income taxes $21,602 $16,351 $28,203
See notes to consolidated financial statements
57