UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
June 27, 2014
(Date of Report - Date of Earliest Event Reported)
First Cash Financial Services, Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-19133 (Commission File Number) | 75-2237318 (IRS Employer Identification No.) |
690 East Lamar Blvd., Suite 400, Arlington, Texas 76011
(Address of principal executive offices, including zip code)
(817) 460-3947
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 8.01. Other Events.
As previously reported, on March 24, 2014, First Cash Financial Services, Inc. (the “Company”) issued and sold $200 million of 6.75% Senior Notes due 2021 (the “Notes”) pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Notes are guaranteed by certain of the Company’s domestic subsidiaries (the “Guarantor Subsidiaries”). In connection with the issuance and sale of the Notes, the Company and the Guarantor Subsidiaries agreed to file a registration statement on Form S-4 with the Securities and Exchange Commission with regard to an offer to exchange the unregistered Notes and related guarantees for new registered notes and guarantees with substantially identical terms, except for the transfer restrictions and registration rights that do not apply to the new notes.
In connection with the exchange offer, the Company will become subject to the requirements of Rule 3-10 of Regulation S-X which requires certain financial information regarding guarantors of registered securities to be included or incorporated by reference in the registration statement. The Company is filing this Current Report on Form 8-K for the purpose of including in its interim financial statements for the quarter ended March 31, 2014 an additional footnote (“Note 5 - Condensed Consolidating Guarantor Financial Statements”) containing the required condensed consolidating financial information relating to the Guarantor Subsidiaries. These interim financial statements will be incorporated by reference into the Company’s registration statement related to the exchange offer.
The revised interim financial statements are filed as Exhibit 99.1 to this Current Report on Form 8-K. The interim financial statements of the Company which were previously filed as part of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 otherwise remain unchanged.
Item 9.01. Financial Statements and Exhibits.
(d) The following Exhibits are filed herewith as part of this report: | |||
99.1 | Condensed Consolidated Interim Financial Statements (unaudited) of First Cash Financial Services, Inc. and subsidiaries as of March 31, 2014, March 31, 2013 and December 31, 2013, and for the three-month periods ended March 31, 2014 and 2013, as modified solely to include new Note 5 to the Condensed Consolidated Interim Financial Statements. | ||
101 | XBRL Instance Documents and Related Items | ||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: June 27, 2014 | FIRST CASH FINANCIAL SERVICES, INC. |
(Registrant) | |
/s/ R. DOUGLAS ORR | |
R. Douglas Orr | |
Executive Vice President and Chief Financial Officer | |
(Principal Financial and Accounting Officer) | |
EXHIBIT INDEX
Exhibit Number | Description |
99.1 | Condensed Consolidated Interim Financial Statements (unaudited) of First Cash Financial Services, Inc. and subsidiaries as of March 31, 2014, March 31, 2013 and December 31, 2013, and for the three-month periods ended March 31, 2014 and 2013, as modified solely to include new Note 5 to the Condensed Consolidated Interim Financial Statements. |
101 | XBRL Instance Documents and Related Items |
3
EXHIBIT 99.1 | ||
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FIRST CASH FINANCIAL SERVICES, INC. | ||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
(unaudited, in thousands) | ||||||||||||
March 31, | December 31, | |||||||||||
2014 | 2013 | 2013 | ||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 94,929 | $ | 38,339 | $ | 70,643 | ||||||
Pawn loan fees and service charges receivable | 16,539 | 15,544 | 16,689 | |||||||||
Pawn loans | 113,938 | 104,636 | 115,234 | |||||||||
Consumer loans, net | 1,239 | 1,618 | 1,450 | |||||||||
Inventories | 72,279 | 64,771 | 77,793 | |||||||||
Prepaid expenses and other current assets | 2,425 | 7,310 | 3,369 | |||||||||
Deferred tax assets | 5,190 | 1,148 | 5,044 | |||||||||
Total current assets | 306,539 | 233,366 | 290,222 | |||||||||
Property and equipment, net | 109,882 | 97,006 | 108,137 | |||||||||
Goodwill, net | 254,790 | 168,799 | 251,241 | |||||||||
Other non-current assets | 15,978 | 6,561 | 9,373 | |||||||||
Total assets | $ | 687,189 | $ | 505,732 | $ | 658,973 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Current portion of notes payable | $ | — | $ | 3,240 | $ | 3,326 | ||||||
Accounts payable and accrued liabilities | 37,184 | 30,827 | 38,023 | |||||||||
Income taxes payable | 3,377 | — | 7,412 | |||||||||
Total current liabilities | 40,561 | 34,067 | 48,761 | |||||||||
Revolving unsecured credit facility | — | 52,000 | 182,000 | |||||||||
Notes payable, net of current portion | — | 7,531 | 5,026 | |||||||||
Senior unsecured notes | 200,000 | — | — | |||||||||
Deferred income tax liabilities | 9,292 | 17,155 | 8,827 | |||||||||
Total liabilities | 249,853 | 110,753 | 244,614 | |||||||||
Stockholders' equity: | ||||||||||||
Preferred stock | — | — | — | |||||||||
Common stock | 394 | 393 | 394 | |||||||||
Additional paid-in capital | 177,225 | 175,144 | 176,675 | |||||||||
Retained earnings | 520,410 | 434,146 | 497,728 | |||||||||
Accumulated other comprehensive income (loss) from | ||||||||||||
cumulative foreign currency translation adjustments | (8,006 | ) | (709 | ) | (7,751 | ) | ||||||
Common stock held in treasury, at cost | (252,687 | ) | (213,995 | ) | (252,687 | ) | ||||||
Total stockholders' equity | 437,336 | 394,979 | 414,359 | |||||||||
Total liabilities and stockholders' equity | $ | 687,189 | $ | 505,732 | $ | 658,973 | ||||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | ||||||||||||
EXHIBIT 99.1 | ||
FIRST CASH FINANCIAL SERVICES, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(unaudited, in thousands, except per share amounts) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Revenue: | ||||||||
Retail merchandise sales | $ | 98,708 | $ | 81,770 | ||||
Pawn loan fees | 47,638 | 43,151 | ||||||
Consumer loan and credit services fees | 9,784 | 11,767 | ||||||
Wholesale scrap jewelry revenue | 13,647 | 23,224 | ||||||
Total revenue | 169,777 | 159,912 | ||||||
Cost of revenue: | ||||||||
Cost of retail merchandise sold | 60,490 | 48,039 | ||||||
Consumer loan and credit services loss provision | 1,743 | 2,109 | ||||||
Cost of wholesale scrap jewelry sold | 11,088 | 18,504 | ||||||
Total cost of revenue | 73,321 | 68,652 | ||||||
Net revenue | 96,456 | 91,260 | ||||||
Expenses and other income: | ||||||||
Store operating expenses | 48,492 | 42,805 | ||||||
Administrative expenses | 13,329 | 13,092 | ||||||
Depreciation and amortization | 4,272 | 3,625 | ||||||
Interest expense | 1,436 | 719 | ||||||
Interest income | (81 | ) | (147 | ) | ||||
Total expenses and other income | 67,448 | 60,094 | ||||||
Income from continuing operations before income taxes | 29,008 | 31,166 | ||||||
Provision for income taxes | 6,054 | 10,986 | ||||||
Income from continuing operations | 22,954 | 20,180 | ||||||
Income (loss) from discontinued operations, net of tax | (272 | ) | 84 | |||||
Net income | $ | 22,682 | $ | 20,264 | ||||
Basic income per share: | ||||||||
Income from continuing operations | $ | 0.79 | $ | 0.69 | ||||
Income (loss) from discontinued operations | (0.01 | ) | — | |||||
Net income per basic share | $ | 0.78 | $ | 0.69 | ||||
Diluted income per share: | ||||||||
Income from continuing operations | $ | 0.78 | $ | 0.68 | ||||
Income (loss) from discontinued operations | (0.01 | ) | — | |||||
Net income per diluted share | $ | 0.77 | $ | 0.68 | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | ||||||||
EXHIBIT 99.1 | ||
FIRST CASH FINANCIAL SERVICES, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
(unaudited, in thousands) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Net income | $ | 22,682 | $ | 20,264 | ||||
Other comprehensive income (loss): | ||||||||
Currency translation adjustment, gross | (393 | ) | 9,411 | |||||
Tax (expense) benefit | 138 | (3,180 | ) | |||||
Comprehensive income | $ | 22,427 | $ | 26,495 | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | ||||||||
FIRST CASH FINANCIAL SERVICES, INC. | |||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accum- ulated Other Compre- hensive Income (Loss) | Common Stock Held in Treasury | Total Stock- holders' Equity | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||
Balance at 12/31/2013 | — | $ | — | 39,377 | $ | 394 | $ | 176,675 | $ | 497,728 | $ | (7,751 | ) | 10,429 | $ | (252,687 | ) | $ | 414,359 | ||||||||||||||||||
Shares issued under share-based com-pensation plan | — | — | 5 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 550 | — | — | — | — | 550 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | 22,682 | — | — | — | 22,682 | |||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | (255 | ) | — | — | (255 | ) | |||||||||||||||||||||||||
Balance at 3/31/2014 | — | $ | — | 39,382 | $ | 394 | $ | 177,225 | $ | 520,410 | $ | (8,006 | ) | 10,429 | $ | (252,687 | ) | $ | 437,336 | ||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | |||||||||||||||||||||||||||||||||||||
EXHIBIT 99.1 | ||
FIRST CASH FINANCIAL SERVICES, INC. | |||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||
CONTINUED | |||||||||||||||||||||||||||||||||||||
(unaudited, in thousands) | |||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accum- ulated Other Compre- hensive Income (Loss) | Common Stock Held in Treasury | Total Stock- holders' Equity | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||
Balance at 12/31/2012 | — | $ | — | 38,796 | $ | 388 | $ | 159,081 | $ | 413,882 | $ | (6,940 | ) | 9,700 | $ | (213,995 | ) | $ | 352,416 | ||||||||||||||||||
Shares issued under share-based com-pensation plan | — | — | 4 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Exercise of stock options | — | — | 532 | 5 | 8,417 | — | — | — | — | 8,422 | |||||||||||||||||||||||||||
Income tax benefit from exercise of stock options | — | — | — | — | 7,218 | — | — | — | — | 7,218 | |||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 428 | — | — | — | — | 428 | |||||||||||||||||||||||||||
Net income | — | — | — | — | — | 20,264 | — | — | — | 20,264 | |||||||||||||||||||||||||||
Currency translation adjustment, net of tax | — | — | — | — | — | — | 6,231 | — | — | 6,231 | |||||||||||||||||||||||||||
Balance at 3/31/2013 | — | $ | — | 39,332 | $ | 393 | $ | 175,144 | $ | 434,146 | $ | (709 | ) | 9,700 | $ | (213,995 | ) | $ | 394,979 | ||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | |||||||||||||||||||||||||||||||||||||
EXHIBIT 99.1 | ||
FIRST CASH FINANCIAL SERVICES, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(unaudited, in thousands) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 22,682 | $ | 20,264 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities: | ||||||||
Non-cash portion of credit loss provision | 213 | 249 | ||||||
Share-based compensation expense | 550 | 428 | ||||||
Depreciation and amortization expense | 4,272 | 3,625 | ||||||
Amortization of debt issuance costs | 162 | 47 | ||||||
Deferred income taxes | 451 | 700 | ||||||
Changes in operating assets and liabilities, net of business combinations: | ||||||||
Pawn fees and service charges receivable | 154 | 62 | ||||||
Merchandise inventories | 1,805 | 975 | ||||||
Prepaid expenses and other assets | (185 | ) | (2,670 | ) | ||||
Accounts payable and accrued expenses | (459 | ) | 2,110 | |||||
Income taxes payable, current | (4,051 | ) | (596 | ) | ||||
Net cash flow provided by operating activities | 25,594 | 25,194 | ||||||
Cash flow from investing activities: | ||||||||
Loan receivables, net of cash repayments | 5,773 | 3,136 | ||||||
Purchases of property and equipment | (5,674 | ) | (4,704 | ) | ||||
Acquisitions of pawn stores, net of cash acquired | (4,889 | ) | (1,468 | ) | ||||
Net cash flow used in investing activities | (4,790 | ) | (3,036 | ) | ||||
Cash flow from financing activities: | ||||||||
Borrowings from revolving credit facilities | 2,500 | — | ||||||
Repayments of revolving credit facilities | (184,500 | ) | (50,500 | ) | ||||
Repayments of notes payable | (8,352 | ) | (792 | ) | ||||
Issuance of senior notes | 200,000 | — | ||||||
Debt issuance costs paid | (5,909 | ) | — | |||||
Proceeds from exercise of share-based compensation awards | — | 8,422 | ||||||
Income tax benefit from exercise of stock options | — | 7,218 | ||||||
Net cash flow provided by (used in) financing activities | 3,739 | (35,652 | ) | |||||
Effect of exchange rates on cash | (257 | ) | 1,548 | |||||
Change in cash and cash equivalents | 24,286 | (11,946 | ) | |||||
Cash and cash equivalents at beginning of the period | 70,643 | 50,285 | ||||||
Cash and cash equivalents at end of the period | $ | 94,929 | $ | 38,339 | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | ||||||||
EXHIBIT 99.1 | ||
FIRST CASH FINANCIAL SERVICES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note 1 - Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements, including the notes thereto, include the accounts of First Cash Financial Services, Inc. and its wholly-owned subsidiaries (together, the “Company”). All significant intercompany accounts and transactions have been eliminated.
These unaudited consolidated financial statements are condensed and do not include all disclosures and footnotes required by generally accepted accounting principles in the United States of America for complete financial statements. These interim period financial statements should be read in conjunction with the Company's consolidated financial statements, which are included in the Company's annual report for the year ended December 31, 2013, on Form 10-K filed with the Securities and Exchange Commission on February 28, 2014. The condensed consolidated financial statements as of March 31, 2014, and for the three month periods ended March 31, 2014, and 2013 are unaudited, but in management's opinion, include all adjustments (consisting of only normal recurring adjustments) considered necessary to present fairly the financial position, results of operations and cash flow for such interim periods. Operating results for the period ended March 31, 2014, are not necessarily indicative of the results that may be expected for the full fiscal year.
The Company manages its pawn and consumer loan operations under three operating segments: U.S. pawn operations, U.S. consumer loan operations and Mexico operations. The three operating segments have been aggregated into one reportable segment because they have similar economic characteristics and similar long-term financial performance metrics. Additionally, all three segments offer similar and overlapping products and services to a similar customer demographic, operate in similar regulatory environments, and are supported by a single, centralized administrative support platform.
The Company has significant operations in Mexico where the functional currency for the Company's Mexican subsidiaries is the Mexican peso. Accordingly, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity. Revenue and expenses are translated at the average exchange rates occurring during the year-to-date periods.
Certain amounts in prior year comparative presentations have been reclassified in order to conform to the 2014 presentation.
Recent Accounting Pronouncements
In April 2014, the Financial Accounting Standards Board issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360)” (“ASU 2014-08”). The amendments in ASU 2014-08 require that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The Company does not expect ASU 2014-08 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures, however, it may impact the reporting of future discontinued operations if and when they occur.
EXHIBIT 99.1 | ||
Note 2 - Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share (unaudited, in thousands, except per share data):
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Income from continuing operations for calculating basic and diluted earnings per share | $ | 22,954 | $ | 20,180 | |||||
Income (loss) from discontinued operations | (272 | ) | 84 | ||||||
Net income for calculating basic and diluted earnings per share | $ | 22,682 | $ | 20,264 | |||||
Denominator: | |||||||||
Weighted-average common shares for calculating basic earnings per share | 28,952 | 29,313 | |||||||
Effect of dilutive securities: | |||||||||
Stock options and nonvested awards | 390 | 642 | |||||||
Weighted-average common shares for calculating diluted earnings per share | 29,342 | 29,955 | |||||||
Basic earnings per share: | |||||||||
Income from continuing operations | $ | 0.79 | $ | 0.69 | |||||
Income (loss) from discontinued operations | (0.01 | ) | — | ||||||
Net income per basic share | $ | 0.78 | $ | 0.69 | |||||
Diluted earnings per share: | |||||||||
Income from continuing operations | $ | 0.78 | $ | 0.68 | |||||
Income (loss) from discontinued operations | (0.01 | ) | — | ||||||
Net income per diluted share | $ | 0.77 | $ | 0.68 | |||||
Note 3 - Long-Term Debt
Senior Unsecured Notes
On March 24, 2014, the Company completed the private offering of $200,000,000 of 6.75% senior notes due on April 1, 2021 (the “Notes”). Interest on the Notes will be payable semi-annually in arrears on April 1 and October 1, commencing on October 1, 2014. The Notes were sold to the placement agents as initial purchasers for resale only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States in accordance with Regulation S under the Securities Act. The net proceeds from the sale of the Notes were approximately $195,000,000. The Company used $153,411,000 of the net proceeds from the offering to repay all amounts outstanding under the 2014 Credit Facility (defined below) and to pay off the remaining balances on notes payable related to previous pawn store acquisitions. Approximately $41,589,000 of the net proceeds remain available for general corporate purposes. The Company is capitalizing approximately $5,000,000 in issuance costs, which consisted primarily of placement agent fees and legal and other professional expenses. The issuance costs are being amortized over the life of the Notes as a component of interest expense.
The Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its revolving bank credit facility. The Company may redeem the Notes at any time on or after April 1, 2017, at the redemption prices set forth in the indenture governing the Notes (the “Indenture”), plus accrued and unpaid interest, if any. In addition, prior to April 1, 2017, the Company may redeem some or all of the Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus a “make-whole” premium set forth in the Indenture. The Company may redeem up to 35% of the Notes prior to April 1, 2017, with the proceeds of certain equity
EXHIBIT 99.1 | ||
offerings at a redemption price of 106.75% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any. In addition, upon a change of control, noteholders have the right to require the Company to purchase the Notes at a price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest, if any.
On March 24, 2014, the Company entered into a registration rights agreement with the initial purchasers of the Notes. Pursuant to the registration rights agreement, the Company agreed to use commercially reasonable efforts to issue in exchange for the Notes, generally no later than approximately 245 days following the closing date of the issuance and sale of the Notes, identical new notes that have been registered under the Securities Act. In certain circumstances, the Company may be required to file a shelf registration statement to cover resales of the Notes. If the Company does not comply with certain covenants set forth in the registration rights agreement, the Company may be required to pay liquidated damages to holders of the Notes.
Revolving Credit Facilities
During the period from January 1, 2014, through February 4, 2014, the Company maintained a revolving line of credit agreement with its lenders (the “2012 Credit Facility”) in the amount of $205,000,000, which was scheduled to mature in February 2015. The 2012 Credit Facility charged interest at the prevailing 30-day London Interbank Offered Rate (“LIBOR”) plus a fixed spread of 2.0%. On February 4, 2014, the Company had $174,000,000 outstanding under the 2012 Credit Facility.
On February 5, 2014, the Company entered into an agreement with a group of commercial lenders to establish a new revolving credit facility (the “2014 Credit Facility”) in the amount of $160,000,000 with an accordion feature whereby the facility may be increased up to an additional $50,000,000 with the consent of any increasing or additional participating lenders. The Company used proceeds from the 2014 Credit Facility and available cash balances to retire and terminate the 2012 Credit Facility. The 2014 Credit Facility matures in February 2019 and bears interest, at the Company's option, at either (i) the prevailing LIBOR rate (with interest periods of 1, 2, 3 or 6 months at the Company's option) plus a fixed spread of 2.5% or (ii) the prevailing prime or base rate plus a fixed spread of 1.5%. The Company is required to maintain certain financial ratios and comply with certain financial covenants, including compliance with a leverage ratio of no greater than 2.5 times Consolidated EBITDA (as defined in the 2014 Credit Facility). The 2014 Credit Facility limits the Company's ability to incur additional indebtedness, subject to customary exceptions, including permitted additional unsecured debt so long as the aggregate principal amount of the loans and commitments under the 2014 Credit Facility plus such additional unsecured debt plus foreign third-party loans does not in the aggregate exceed $500,000,000. The 2014 Credit Facility is unsecured except for the pledge of 65% of the stock of certain of the Company's foreign subsidiaries, and the Company is restricted from pledging any of its other assets as collateral against other indebtedness. The 2014 Credit Facility is guaranteed by the Company's material U.S. operating subsidiaries. The 2014 Credit Facility allows the Company to repurchase shares of its stock and to pay cash dividends within certain parameters. The Company is required to pay an annual commitment fee of 0.50% on the average daily unused portion of the 2014 Credit Facility commitment. During March 2014, the Company used $145,870,000 of the proceeds from the sale of the Notes to repay all amounts outstanding under the 2014 Credit Facility. At March 31, 2014, the Company had no amount outstanding under the 2014 Credit Facility and $160,000,000 was available for borrowings.
Other Notes Payable
In March 2014, the Company used $7,541,000 of the proceeds from the sale of the Notes to repay the entire remaining balances on notes payable of $6,134,000 related to a September 2012 multi-store pawn acquisition and a note payable of $1,407,000 related to a January 2012 multi-store pawn acquisition.
EXHIBIT 99.1 | ||
Note 4 - Income Taxes
In July 2013, the Company terminated an election to include foreign subsidiaries in its consolidated U.S. federal income tax return and it is the Company's intent to indefinitely reinvest the earnings of these subsidiaries outside the U.S. Accordingly, under U.S. income tax law, as of December 31, 2013, the undistributed earnings of the foreign subsidiaries should not be subject to U.S. federal income taxes. The Company recognized an estimated non-recurring net income tax benefit of approximately $3,979,000 in 2013 related primarily to changes in deferred tax assets and liabilities, net of certain one-time U.S. tax liabilities associated with the termination of the election. The Company recorded an additional benefit of $3,669,000 in March 2014 as the result of a change in its estimated U.S. federal liability associated with the terminated election. The amount of the benefits could be subject to adjustment pending the preparation and filing of the Company's 2013 tax returns during 2014.
EXHIBIT 99.1 | ||
Note 5 - Condensed Consolidating Guarantor Financial Statements
In connection with the issuance of the senior unsecured Notes, certain of the Company's domestic subsidiaries (collectively, "Guarantor Subsidiaries”), fully, unconditionally, jointly, and severally guaranteed the payment obligations under the Notes. Each of the Guarantor Subsidiaries is 100% owned, directly or indirectly, by the Company. The following supplemental financial information sets forth, on a consolidating basis, the balance sheets, statements of comprehensive income and statements of cash flows of First Cash Financial Services, Inc. (the “Parent Company”), the Guarantor Subsidiaries and the Parent Company's other subsidiaries (the “Non-Guarantor Subsidiaries”).
The supplemental condensed consolidating financial information has been prepared pursuant to Securities and Exchange Commission rules and regulations for interim condensed financial information and does not include the more complete disclosures included in annual financial statements. Investments in consolidated subsidiaries have been presented under the equity method of accounting. The principal eliminating entries eliminate investments in subsidiaries, intercompany balances and intercompany revenues and expenses. The condensed financial information may not necessarily be indicative of the results of operations or financial position had the Guarantor Subsidiaries or Non-Guarantor Subsidiaries operated as independent entities.
EXHIBIT 99.1 | ||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
March 31, 2014 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 51,606 | $ | 2,812 | $ | 40,511 | $ | — | $ | 94,929 | ||||||||||
Pawn loan fees and service charges receivable | — | 6,278 | 10,261 | — | 16,539 | |||||||||||||||
Pawn loans | — | 47,361 | 66,577 | — | 113,938 | |||||||||||||||
Consumer loans, net | — | 518 | 721 | — | 1,239 | |||||||||||||||
Inventories | — | 29,770 | 42,509 | — | 72,279 | |||||||||||||||
Prepaid expenses and other current assets | 1,365 | — | 1,060 | — | 2,425 | |||||||||||||||
Deferred tax assets | 906 | — | 4,284 | — | 5,190 | |||||||||||||||
Total current assets | 53,877 | 86,739 | 165,923 | — | 306,539 | |||||||||||||||
Property and equipment, net | 4,025 | 47,687 | 58,170 | — | 109,882 | |||||||||||||||
Goodwill, net | — | 152,981 | 101,809 | — | 254,790 | |||||||||||||||
Other non-current assets | 6,805 | 4,037 | 5,136 | — | 15,978 | |||||||||||||||
Deferred tax assets | — | — | 7,249 | (7,249 | ) | — | ||||||||||||||
Intercompany receivable | — | — | 161,272 | (161,272 | ) | — | ||||||||||||||
Investments in subsidiaries | 748,735 | — | — | (748,735 | ) | — | ||||||||||||||
Total assets | $ | 813,442 | $ | 291,444 | $ | 499,559 | $ | (917,256 | ) | $ | 687,189 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Accounts payable and accrued liabilities | 12,064 | 7,217 | 17,903 | — | 37,184 | |||||||||||||||
Income taxes payable | 1,887 | — | 1,490 | — | 3,377 | |||||||||||||||
Total current liabilities | 13,951 | 7,217 | 19,393 | — | 40,561 | |||||||||||||||
Senior unsecured notes | 200,000 | — | — | — | 200,000 | |||||||||||||||
Deferred income tax liabilities | 883 | 10,689 | 4,969 | (7,249 | ) | 9,292 | ||||||||||||||
Intercompany payable | 161,272 | — | — | (161,272 | ) | — | ||||||||||||||
Total liabilities | 376,106 | 17,906 | 24,362 | (168,521 | ) | 249,853 | ||||||||||||||
Stockholders' equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 394 | — | — | — | 394 | |||||||||||||||
Additional paid-in capital | 177,225 | — | — | — | 177,225 | |||||||||||||||
Retained earnings | 512,707 | 273,538 | 482,900 | (748,735 | ) | 520,410 | ||||||||||||||
Accumulated other comprehensive income (loss) from cumulative foreign currency translation adjustments | (303 | ) | — | (7,703 | ) | — | (8,006 | ) | ||||||||||||
Common stock held in treasury, at cost | (252,687 | ) | — | — | — | (252,687 | ) | |||||||||||||
Total stockholders' equity | 437,336 | 273,538 | 475,197 | (748,735 | ) | 437,336 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 813,442 | $ | 291,444 | $ | 499,559 | $ | (917,256 | ) | $ | 687,189 | |||||||||
EXHIBIT 99.1 | ||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 19,464 | $ | 4,031 | $ | 14,844 | $ | — | $ | 38,339 | ||||||||||
Pawn loan fees and service charges receivable | — | 5,736 | 9,808 | — | 15,544 | |||||||||||||||
Pawn loans | — | 41,518 | 63,118 | — | 104,636 | |||||||||||||||
Consumer loans, net | — | 776 | 842 | — | 1,618 | |||||||||||||||
Inventories | — | 24,855 | 39,916 | — | 64,771 | |||||||||||||||
Prepaid expenses and other current assets | 5,271 | — | 4,487 | (2,448 | ) | 7,310 | ||||||||||||||
Deferred tax assets | 1,148 | — | — | — | 1,148 | |||||||||||||||
Total current assets | 25,883 | 76,916 | 133,015 | (2,448 | ) | 233,366 | ||||||||||||||
Property and equipment, net | 4,431 | 38,565 | 54,010 | — | 97,006 | |||||||||||||||
Goodwill, net | — | 95,755 | 73,044 | — | 168,799 | |||||||||||||||
Other non-current assets | — | 3,244 | 3,317 | — | 6,561 | |||||||||||||||
Deferred tax assets | — | — | 267 | (267 | ) | — | ||||||||||||||
Intercompany receivable | — | — | 140,562 | (140,562 | ) | — | ||||||||||||||
Investments in subsidiaries | 582,319 | — | — | (582,319 | ) | — | ||||||||||||||
Total assets | $ | 612,633 | $ | 214,480 | $ | 404,215 | $ | (725,596 | ) | $ | 505,732 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current portion of notes payable | $ | 3,240 | $ | — | $ | — | $ | — | $ | 3,240 | ||||||||||
Accounts payable and accrued liabilities | 10,092 | 5,435 | 15,300 | — | 30,827 | |||||||||||||||
Income taxes payable | 2,448 | — | — | (2,448 | ) | — | ||||||||||||||
Total current liabilities | 15,780 | 5,435 | 15,300 | (2,448 | ) | 34,067 | ||||||||||||||
Revolving unsecured credit facility | 52,000 | — | — | — | 52,000 | |||||||||||||||
Notes payable, net of current portion | 7,531 | — | — | — | 7,531 | |||||||||||||||
Deferred income tax liabilities | 1,781 | 8,457 | 7,184 | (267 | ) | 17,155 | ||||||||||||||
Intercompany payable | 140,562 | — | — | (140,562 | ) | — | ||||||||||||||
Total liabilities | 217,654 | 13,892 | 22,484 | (143,277 | ) | 110,753 | ||||||||||||||
Stockholders' equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 393 | — | — | — | 393 | |||||||||||||||
Additional paid-in capital | 175,144 | — | — | — | 175,144 | |||||||||||||||
Retained earnings | 433,656 | 200,588 | 382,221 | (582,319 | ) | 434,146 | ||||||||||||||
Accumulated other comprehensive income (loss) from cumulative foreign currency translation adjustments | (219 | ) | — | (490 | ) | — | (709 | ) | ||||||||||||
Common stock held in treasury, at cost | (213,995 | ) | — | — | — | (213,995 | ) | |||||||||||||
EXHIBIT 99.1 | ||
Condensed Consolidating Balance Sheet (Continued) | ||||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Eliminations | Consolidated | ||||||||||||||||
Total stockholders' equity | 394,979 | 200,588 | 381,731 | (582,319 | ) | 394,979 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 612,633 | $ | 214,480 | $ | 404,215 | $ | (725,596 | ) | $ | 505,732 | |||||||||
EXHIBIT 99.1 | ||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 24,674 | $ | 4,240 | $ | 41,729 | $ | — | $ | 70,643 | ||||||||||
Pawn loan fees and service charges receivable | — | 7,934 | 8,755 | — | 16,689 | |||||||||||||||
Pawn loans | — | 56,566 | 58,668 | — | 115,234 | |||||||||||||||
Consumer loans, net | — | 694 | 756 | — | 1,450 | |||||||||||||||
Inventories | — | 33,817 | 43,976 | — | 77,793 | |||||||||||||||
Prepaid expenses and other current assets | 1,971 | — | 1,398 | — | 3,369 | |||||||||||||||
Deferred tax assets | 907 | — | 4,137 | — | 5,044 | |||||||||||||||
Total current assets | 27,552 | 103,251 | 159,419 | — | 290,222 | |||||||||||||||
Property and equipment, net | 4,155 | 47,374 | 56,608 | — | 108,137 | |||||||||||||||
Goodwill, net | — | 149,470 | 101,771 | — | 251,241 | |||||||||||||||
Other non-current assets | — | 6,020 | 3,353 | — | 9,373 | |||||||||||||||
Deferred tax assets | — | — | 6,943 | (6,943 | ) | — | ||||||||||||||
Intercompany receivable | — | — | 156,794 | (156,794 | ) | — | ||||||||||||||
Investments in subsidiaries | 751,785 | — | — | (751,785 | ) | — | ||||||||||||||
Total assets | $ | 783,492 | $ | 306,115 | $ | 484,888 | $ | (915,522 | ) | $ | 658,973 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Current portion of notes payable | $ | 3,326 | $ | — | $ | — | $ | — | $ | 3,326 | ||||||||||
Accounts payable and accrued liabilities | 13,804 | 6,942 | 17,277 | — | 38,023 | |||||||||||||||
Income taxes payable | 7,302 | — | 110 | — | 7,412 | |||||||||||||||
Total current liabilities | 24,432 | 6,942 | 17,387 | — | 48,761 | |||||||||||||||
Revolving unsecured credit facility | 182,000 | — | — | — | 182,000 | |||||||||||||||
Notes payable, net of current portion | 5,026 | — | — | — | 5,026 | |||||||||||||||
Deferred income tax liabilities | 881 | 10,080 | 4,809 | (6,943 | ) | 8,827 | ||||||||||||||
Intercompany payable | 156,794 | — | — | (156,794 | ) | — | ||||||||||||||
Total liabilities | 369,133 | 17,022 | 22,196 | (163,737 | ) | 244,614 | ||||||||||||||
Stockholders' equity: | ||||||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||||||
Common stock | 394 | — | — | — | 394 | |||||||||||||||
Additional paid-in capital | 176,675 | — | — | — | 176,675 | |||||||||||||||
Retained earnings | 490,280 | 289,093 | 470,140 | (751,785 | ) | 497,728 | ||||||||||||||
Accumulated other comprehensive income (loss) from cumulative foreign currency translation adjustments | (303 | ) | — | (7,448 | ) | — | (7,751 | ) | ||||||||||||
Common stock held in treasury, at cost | (252,687 | ) | — | — | — | (252,687 | ) | |||||||||||||
EXHIBIT 99.1 | ||
Condensed Consolidating Balance Sheet (Continued) | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Eliminations | Consolidated | ||||||||||||||||
Total stockholders' equity | 414,359 | 289,093 | 462,692 | (751,785 | ) | 414,359 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 783,492 | $ | 306,115 | $ | 484,888 | $ | (915,522 | ) | $ | 658,973 | |||||||||
EXHIBIT 99.1 | ||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Eliminations | Consolidated | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Retail merchandise sales | $ | — | $ | 37,358 | $ | 61,350 | $ | — | $ | 98,708 | ||||||||||
Pawn loan fees | — | 19,466 | 28,172 | — | 47,638 | |||||||||||||||
Consumer loan and credit services fees | — | 8,963 | 821 | — | 9,784 | |||||||||||||||
Wholesale scrap jewelry revenue | — | 7,507 | 6,140 | — | 13,647 | |||||||||||||||
Total revenue | — | 73,294 | 96,483 | — | 169,777 | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Cost of retail merchandise sold | — | 21,136 | 39,354 | — | 60,490 | |||||||||||||||
Consumer loan and credit services loss provision | — | 1,565 | 178 | — | 1,743 | |||||||||||||||
Cost of wholesale scrap jewelry sold | — | 6,119 | 4,969 | — | 11,088 | |||||||||||||||
Total cost of revenue | — | 28,820 | 44,501 | — | 73,321 | |||||||||||||||
Net revenue | — | 44,474 | 51,982 | — | 96,456 | |||||||||||||||
Expenses and other income: | ||||||||||||||||||||
Store operating expenses | — | 21,187 | 27,305 | — | 48,492 | |||||||||||||||
Administrative expenses | 7,051 | — | 6,278 | — | 13,329 | |||||||||||||||
Depreciation and amortization | 290 | 1,450 | 2,532 | — | 4,272 | |||||||||||||||
Interest expense | 1,436 | — | — | — | 1,436 | |||||||||||||||
Interest income | (29 | ) | 25 | (77 | ) | — | (81 | ) | ||||||||||||
Total expenses and other income | 8,748 | 22,662 | 36,038 | — | 67,448 | |||||||||||||||
Income from continuing operations before income taxes | (8,748 | ) | 21,812 | 15,944 | — | 29,008 | ||||||||||||||
Provision for income taxes | (6,497 | ) | 7,634 | 4,917 | — | 6,054 | ||||||||||||||
Income from continuing operations | (2,251 | ) | 14,178 | 11,027 | — | 22,954 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | (272 | ) | — | (272 | ) | |||||||||||||
Net income | $ | (2,251 | ) | $ | 14,178 | $ | 10,755 | $ | — | $ | 22,682 | |||||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Currency translation adjustment, net of tax expense or benefit | (255 | ) | — | — | — | (255 | ) | |||||||||||||
Comprehensive income | $ | (2,506 | ) | $ | 14,178 | $ | 10,755 | $ | — | $ | 22,427 | |||||||||
EXHIBIT 99.1 | ||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Eliminations | Consolidated | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Retail merchandise sales | $ | — | $ | 28,940 | $ | 52,830 | $ | — | $ | 81,770 | ||||||||||
Pawn loan fees | — | 16,814 | 26,337 | — | 43,151 | |||||||||||||||
Consumer loan and credit services fees | — | 10,741 | 1,026 | — | 11,767 | |||||||||||||||
Wholesale scrap jewelry revenue | — | 12,724 | 10,500 | — | 23,224 | |||||||||||||||
Total revenue | — | 69,219 | 90,693 | — | 159,912 | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Cost of retail merchandise sold | — | 15,194 | 32,845 | — | 48,039 | |||||||||||||||
Consumer loan and credit services loss provision | — | 1,989 | 120 | — | 2,109 | |||||||||||||||
Cost of wholesale scrap jewelry sold | — | 9,757 | 8,747 | — | 18,504 | |||||||||||||||
Total cost of revenue | — | 26,940 | 41,712 | — | 68,652 | |||||||||||||||
Net revenue | — | 42,279 | 48,981 | — | 91,260 | |||||||||||||||
Expenses and other income: | ||||||||||||||||||||
Store operating expenses | — | 18,074 | 24,731 | — | 42,805 | |||||||||||||||
Administrative expenses | 9,211 | — | 3,881 | — | 13,092 | |||||||||||||||
Depreciation and amortization | 277 | 1,130 | 2,218 | — | 3,625 | |||||||||||||||
Interest expense | 719 | — | — | — | 719 | |||||||||||||||
Interest income | (3 | ) | — | (144 | ) | — | (147 | ) | ||||||||||||
Total expenses and other income | 10,204 | 19,204 | 30,686 | — | 60,094 | |||||||||||||||
Income from continuing operations before income taxes | (10,204 | ) | 23,075 | 18,295 | — | 31,166 | ||||||||||||||
Provision for income taxes | (2,962 | ) | 8,307 | 5,641 | — | 10,986 | ||||||||||||||
Income from continuing operations | (7,242 | ) | 14,768 | 12,654 | — | 20,180 | ||||||||||||||
Income (loss) from discontinued operations, net of tax | — | — | 84 | — | 84 | |||||||||||||||
Net income | $ | (7,242 | ) | $ | 14,768 | $ | 12,738 | $ | — | $ | 20,264 | |||||||||
Other comprehensive income (loss): | ||||||||||||||||||||
Currency translation adjustment, net of tax expense or benefit | 6,231 | — | — | — | 6,231 | |||||||||||||||
Comprehensive income | $ | (1,011 | ) | $ | 14,768 | $ | 12,738 | $ | — | $ | 26,495 | |||||||||
EXHIBIT 99.1 | ||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Eliminations | Consolidated | ||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Net cash flow provided by (used in) operating activities | $ | 18,875 | $ | (8,673 | ) | $ | 15,392 | $ | — | $ | 25,594 | |||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Loan receivables, net of cash repayments | — | 13,611 | (7,838 | ) | — | 5,773 | ||||||||||||||
Purchases of property and equipment | (160 | ) | (1,477 | ) | (4,037 | ) | — | (5,674 | ) | |||||||||||
Acquisitions of pawn stores, net of cash acquired | — | (4,889 | ) | — | — | (4,889 | ) | |||||||||||||
Investing activity with subsidiaries | 4,478 | — | (4,478 | ) | — | — | ||||||||||||||
Net cash flow provided by (used in) investing activities | 4,318 | 7,245 | (16,353 | ) | — | (4,790 | ) | |||||||||||||
Cash flow from financing activities: | ||||||||||||||||||||
Borrowings from revolving credit facilities | 2,500 | — | — | — | 2,500 | |||||||||||||||
Repayments of revolving credit facilities | (184,500 | ) | — | — | — | (184,500 | ) | |||||||||||||
Repayments of notes payable | (8,352 | ) | — | — | — | (8,352 | ) | |||||||||||||
Issuance of senior notes | 200,000 | — | — | — | 200,000 | |||||||||||||||
Debt issuance costs paid | (5,909 | ) | — | — | — | (5,909 | ) | |||||||||||||
Net cash flow provided by (used in) financing activities | 3,739 | — | — | — | 3,739 | |||||||||||||||
Effect of exchange rates on cash | — | — | (257 | ) | — | (257 | ) | |||||||||||||
Change in cash and cash equivalents | 26,932 | (1,428 | ) | (1,218 | ) | — | 24,286 | |||||||||||||
Cash and cash equivalents at beginning of the period | 24,674 | 4,240 | 41,729 | — | 70,643 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | 51,606 | $ | 2,812 | $ | 40,511 | $ | — | $ | 94,929 | ||||||||||
EXHIBIT 99.1 | ||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Eliminations | Consolidated | ||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||||||
Net cash flow provided by (used in) operating activities | $ | 21,880 | $ | (9,440 | ) | $ | 12,754 | $ | — | $ | 25,194 | |||||||||
Cash flow from investing activities: | ||||||||||||||||||||
Loan receivables, net of cash repayments | — | 10,356 | (7,220 | ) | — | 3,136 | ||||||||||||||
Purchases of property and equipment | (976 | ) | (770 | ) | (2,958 | ) | — | (4,704 | ) | |||||||||||
Acquisitions of pawn stores, net of cash acquired | — | — | (1,468 | ) | — | (1,468 | ) | |||||||||||||
Investing activity with subsidiaries | 22,067 | — | (22,067 | ) | — | — | ||||||||||||||
Net cash flow provided by (used in) investing activities | 21,091 | 9,586 | (33,713 | ) | — | (3,036 | ) | |||||||||||||
Cash flow from financing activities: | ||||||||||||||||||||
Repayments of revolving credit facilities | (50,500 | ) | — | — | — | (50,500 | ) | |||||||||||||
Repayments of notes payable | (792 | ) | — | — | — | (792 | ) | |||||||||||||
Proceeds from exercise of share-based compensation awards | 8,422 | — | — | — | 8,422 | |||||||||||||||
Income tax benefit from exercise of stock options | 7,218 | — | — | — | 7,218 | |||||||||||||||
Net cash flow provided by (used in) financing activities | (35,652 | ) | — | — | — | (35,652 | ) | |||||||||||||
Effect of exchange rates on cash | — | — | 1,548 | — | 1,548 | |||||||||||||||
Change in cash and cash equivalents | 7,319 | 146 | (19,411 | ) | — | (11,946 | ) | |||||||||||||
Cash and cash equivalents at beginning of the period | 12,145 | 3,885 | 34,255 | — | 50,285 | |||||||||||||||
Cash and cash equivalents at end of the period | $ | 19,464 | $ | 4,031 | $ | 14,844 | $ | — | $ | 38,339 | ||||||||||