|
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
|
12 Months Ended |
|
Dec. 31, 2013
|
Dec. 31, 2012
|
| Cash flows from operating activities: |
|
|
| Net income |
$ 21,005 |
$ 69,408 |
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
| Accretion of deferred acquisition fees |
(20,565) |
(15,957) |
| Accretion of purchase discount on receivables measured at fair value |
(1,421) |
(4,144) |
| Amortization of discount on securitization trust debt |
600 |
1,913 |
| Amortization of discount on senior secured debt, related party |
1,992 |
2,296 |
| Accretion of premium on debt secured by receivables measured at fair value |
2,726 |
4,579 |
| Mark to fair value on debt secured by receivables at fair value |
(747) |
7,113 |
| Mark to fair value of receivables measured at fair value |
595 |
(6,634) |
| Depreciation and amortization |
437 |
543 |
| Amortization of deferred financing costs |
6,803 |
5,954 |
| Provision for credit losses |
76,869 |
33,495 |
| Provision for contingent liabilities |
7,841 |
0 |
| Stock-based compensation expense |
3,864 |
1,134 |
| Interest income on residual assets |
0 |
(410) |
| Gain on cancellation of debt |
(10,947) |
0 |
| Change in fair value of warrants |
0 |
695 |
| Changes in assets and liabilities: |
|
|
| Accrued interest receivable |
(8,259) |
(3,979) |
| Other assets |
(2,183) |
5,625 |
| Deferred tax assets |
16,425 |
(60,640) |
| Accounts payable and accrued expenses |
4,337 |
(6,002) |
| Net cash provided by operating activities |
99,372 |
34,989 |
| Cash flows from investing activities: |
|
|
| Purchases of finance receivables held for investment |
(764,087) |
(551,742) |
| Payments received on finance receivables held for investment |
337,095 |
295,734 |
| Payments on receivables portfolio at fair value |
46,018 |
111,363 |
| Proceeds received on residual interest in securitizations |
3,970 |
0 |
| Change in repossessions in inventory |
(4,246) |
(1,237) |
| Decreases (increases) in restricted cash and equivalents, net |
(27,839) |
54,783 |
| Purchase of furniture and equipment |
(477) |
(394) |
| Net cash used in investing activities |
(409,566) |
(91,493) |
| Cash flows from financing activities: |
|
|
| Proceeds from issuance of securitization trust debt |
778,000 |
558,500 |
| Proceeds from issuance of subordinated renewable notes |
1,276 |
4,957 |
| Proceeds from issuance of senior secured debt, related party |
5,284 |
0 |
| Payments on subordinated renewable notes |
(5,415) |
(2,426) |
| Net repayments of warehouse lines of credit |
(12,279) |
(3,662) |
| Net proceeds from (repayments of) residual interest financing debt |
5,323 |
(8,111) |
| Repayment of securitization trust debt |
(382,591) |
(350,981) |
| Repayment of debt secured by receivables measured at fair value |
(45,969) |
(121,413) |
| Repayment of senior secured debt, related party |
(18,852) |
(11,200) |
| Payment of financing costs |
(8,734) |
(7,059) |
| Purchase of common stock |
0 |
(435) |
| Exercise of options and warrants |
3,297 |
1,206 |
| Net cash provided by financing activities |
319,340 |
59,376 |
| Increase in cash and cash equivalents |
9,146 |
2,872 |
| Cash and cash equivalents at beginning of period |
12,966 |
10,094 |
| Cash and cash equivalents at end of period |
22,112 |
12,966 |
| Cash paid during the period for: |
|
|
| Interest |
50,663 |
75,654 |
| Income taxes |
2,277 |
1,139 |
| Non-cash financing activities: |
|
|
| Pension benefit obligation, net |
(4,542) |
(2,898) |
| Derivative warrants reclassified from accounts payable to common stock |
$ 583 |
$ 1,307 |