Green Dot 2015 Annual Report Download - page 49

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Liquidity and Capital Resources
The following table summarizes our major sources and uses of cash for the periods presented:
Year Ended December 31,
2015 2014 2013
(In thousands)
Total cash provided by (used in)
Operating activities $ 156,720 $69,217 $122,508
Investing activities (175,718)(187,346) (53,396)
Financing activities 66,489 419,146 57,918
Increase in unrestricted cash, cash equivalents and federal funds sold $47,491 $ 301,017 $ 127,030
During the years ended December 31, 2015, 2014 and 2013 we financed our operations primarily through our
cash flows from operations. Additionally, during the year ended December 31, 2015 and 2014, we financed certain
investing activities through our borrowings under our senior credit facility. At December 31, 2015, our primary source
of liquidity was unrestricted cash and cash equivalents totaling $772.1 million. We also consider our $181.5 million of
investment securities available-for-sale to be highly-liquid instruments.
We use trend and variance analysis as well as our detailed budgets and forecasts to project future cash needs,
making adjustments to the projections when needed. We believe that our current unrestricted cash and cash equivalents
and cash flows from operations, and borrowing capacity under our senior credit facility will be sufficient to meet our
working capital, stock repurchase 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 $156.7 million of net cash provided by operating activities in the year ended December 31, 2015 principally
resulted from $38.4 million of net income, adjusted for certain non-cash operating expenses of $91.2 million, and an
increase in our net changes in our operating assets and liabilities of $27.1 million, driven primarily by an increase in
our accounts payable and accrued liabilities, and income taxes receivable. Our $69.2 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 $67.4 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 $62.0 million and an increase in accounts payable and accrued liabilities of $26.9 million
related primarily to the timing of escheatment and refund liabilities.
Cash Flows from Investing Activities
Our $175.7 million of net cash used in investing activities in the year ended December 31, 2015 reflects payments
for business acquisitions of $65.2 million, net of cash acquired, payments for acquisition of property and equipment
of purchases of $47.8 million, and purchases of available-for-sale investment securities, net of proceeds from sales
and maturities, of $62.7 million. 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 $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 $35.7 million and
purchases of available-for-sale investment securities, net of sales and maturities, of $16.0 million.
Cash Flows from Financing Activities
Our $66.5 million of net cash provided by financing activities in the year ended December 31, 2015 was primarily
the result of increases of $86.7 million of deposits to customers associated with our GPR card program and $45.4
million in obligations to customers, offset by $22.5 million in repayments of our note payable and $41.0 million used