DFC GLOBAL CORP.

CIK:0001271625|SEC Filings

Accumulated Other Comprehensive Income Loss

9 Months Ended

Mar. 31, 2014

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income Loss [Text Block]

Accumulated Other Comprehensive Income (Loss)

In accordance with ASU 2013-2, the reclassification adjustments from accumulated other comprehensive income (loss) to net income were as follows (in millions):



	Three Months Ended March 31, 2014					Nine Months Ended March 31, 2014
	Derivatives			Foreign currency translation adjustment		Derivatives			Foreign currency translation adjustment
Balance at beginning of period	$	(7.3	)	$	37.2	$	(11.2	)	$	(3.9	)
Other comprehensive income before reclassifications, net	(1.3		)	6.8		(8.5		)	47.9
Amounts reclassified from accumulated other comprehensive income, net	2.0			—		13.1			—
Balance at end of period	$	(6.6	)	$	44.0	$	(6.6	)	$	44.0

The reclassifications are recorded to interest expense and unrealized foreign-exchange gain (loss) as described in Note 7, net of tax effect of approximately $(0.5) million and $(3.1) million for the three and nine months ended March 31, 2014, respectively.

Subsidiary Guarantor Financial Information (Consolidated Condensed Statements of Cash Flows) (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net (loss) income	$ (157.5)	$ (8.3)
Adjustments to reconcile net loss to net cash provided by operating activities:
Undistributed income of subsidiaries	0	0
Depreciation and amortization	36.5	43.4
Goodwill and other intangible assets impairment charge	127.3	36.6
Provision for loan losses	148.4	128.2
Non-cash stock compensation	7.2	7.9
Gain on sale of subsidiary	(1.6)	0
(Gain) loss on disposal of fixed assets	0.3	4.0
Unrealized foreign exchange loss (gain)	8.3	0.4
Deferred tax (benefit) provision	(2.3)	(1.7)
Accretion of debt discount and deferred issuance costs	13.5	15.8
Change in assets and liabilities (net of effect of acquisitions):
(Increase) decrease in pawn loans fees and service charges receivable	0.2	(2.2)
Increase in finance and service charges receivable	(21.9)	(18.8)
(Increase) decrease in other receivables	(8.2)	(1.3)
(Increase) decrease in prepaid expenses and other	7.0	(0.2)
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(5.4)	11.3
Intercompany advances	0	0
Net cash provided by operating activities	151.8	215.1
Cash flows from investing activities:
Net increase in consumer loans	(81.9)	(120.3)
Originations of pawn loans	(230.6)	(225.7)
Repayment of pawn loans	239.2	219.3
Acquisitions, net cash acquired	(26.3)	(25.1)
Additions to property and equipment	(25.5)	(32.7)
Proceeds from sale of a subsidiary, net of cash disposed	7.2	0
Intercompany advances	0	0
Net cash provided by (used in) investing activities	(117.9)	(184.5)
Cash flows from financing activities:
Proceeds from the exercise of stock options	0.4	1.1
Proceeds from termination of cross currency swap	38.8	0
Net (decrease) increase in revolving credit facilities	(4.5)	(5.0)
Purchase of 2.875% Senior Convertible Notes due 2027	0	(8.6)
Repayment of long-term debt	(10.0)	0
Repurchase of common stock	(21.5)	(30.1)
Contingent consideration payments	0	(3.9)
Payments of Financing Costs	(3.0)	(0.2)
Intercompany advances	0	0
Net cash (used in) provided by financing activities	0.2	(46.7)
Effect of exchange rate changes on cash and cash equivalents	6.6	(0.6)
Net increase in cash and cash equivalents	40.7	(16.7)
Cash and cash equivalents balance-beginning of period	196.2	224.0
Cash and cash equivalents balance-end of period	236.9	207.3
DFC Global Corp [Member]
Cash flows from operating activities:
Net (loss) income	(157.5)	(8.1)
Adjustments to reconcile net loss to net cash provided by operating activities:
Undistributed income of subsidiaries	147.6	(2.5)
Depreciation and amortization	1.3	1.3
Goodwill and other intangible assets impairment charge	0	0
Provision for loan losses	0	0
Non-cash stock compensation	7.2	7.9
Gain on sale of subsidiary	0
(Gain) loss on disposal of fixed assets	0	0
Unrealized foreign exchange loss (gain)	0	0
Deferred tax (benefit) provision	0	0
Accretion of debt discount and deferred issuance costs	13.1	13.2
Change in assets and liabilities (net of effect of acquisitions):
(Increase) decrease in pawn loans fees and service charges receivable	0	0
Increase in finance and service charges receivable	0	0
(Increase) decrease in other receivables	0	0.3
(Increase) decrease in prepaid expenses and other	0	0
Increase (decrease) in accounts payable, accrued expenses and other liabilities	2.5	3.0
Intercompany advances	(4.5)	(4.9)
Net cash provided by operating activities	9.7	10.2
Cash flows from investing activities:
Net increase in consumer loans	0	0
Originations of pawn loans	0	0
Repayment of pawn loans	0	0
Acquisitions, net cash acquired	0	0
Additions to property and equipment	0	0
Proceeds from sale of a subsidiary, net of cash disposed	0
Intercompany advances	11.4	27.6
Net cash provided by (used in) investing activities	11.4	27.6
Cash flows from financing activities:
Proceeds from the exercise of stock options	0.4	1.1
Proceeds from termination of cross currency swap	0
Net (decrease) increase in revolving credit facilities	0	0
Purchase of 2.875% Senior Convertible Notes due 2027		8.6
Repayment of long-term debt	0
Repurchase of common stock	(21.5)	(30.1)
Contingent consideration payments		0
Payments of Financing Costs	0	(0.2)
Intercompany advances	0	0
Net cash (used in) provided by financing activities	(21.1)	(37.8)
Effect of exchange rate changes on cash and cash equivalents	0	0
Net increase in cash and cash equivalents	0	0
Cash and cash equivalents balance-beginning of period	0.9	0.3
Cash and cash equivalents balance-end of period	0.9	0.3
National Money Mart [Member]
Cash flows from operating activities:
Net (loss) income	27.1	18.7
Adjustments to reconcile net loss to net cash provided by operating activities:
Undistributed income of subsidiaries	0	0
Depreciation and amortization	8.5	9.1
Goodwill and other intangible assets impairment charge	0	0
Provision for loan losses	5.7	16.7
Non-cash stock compensation	0	0
Gain on sale of subsidiary	0
(Gain) loss on disposal of fixed assets	(0.1)	0.7
Unrealized foreign exchange loss (gain)	21.6	(0.3)
Deferred tax (benefit) provision	(3.9)	2.0
Accretion of debt discount and deferred issuance costs	0.4	2.6
Change in assets and liabilities (net of effect of acquisitions):
(Increase) decrease in pawn loans fees and service charges receivable	(0.2)	(0.1)
Increase in finance and service charges receivable	(1.0)	(2.6)
(Increase) decrease in other receivables	(4.7)	(6.8)
(Increase) decrease in prepaid expenses and other	(0.2)	(0.1)
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(7.1)	25.1
Intercompany advances	(5.2)	(1.5)
Net cash provided by operating activities	40.9	63.5
Cash flows from investing activities:
Net increase in consumer loans	(3.9)	(13.4)
Originations of pawn loans	(1.3)	(0.7)
Repayment of pawn loans	0.8	0.2
Acquisitions, net cash acquired	0	(10.0)
Additions to property and equipment	(4.3)	(5.4)
Proceeds from sale of a subsidiary, net of cash disposed	0
Intercompany advances	(45.9)	(47.0)
Net cash provided by (used in) investing activities	(54.6)	(76.3)
Cash flows from financing activities:
Proceeds from the exercise of stock options	0	0
Proceeds from termination of cross currency swap	38.8
Net (decrease) increase in revolving credit facilities	(15.7)	0
Purchase of 2.875% Senior Convertible Notes due 2027		0
Repayment of long-term debt	0
Repurchase of common stock	0	0
Contingent consideration payments		0
Payments of Financing Costs	(1.4)	0
Intercompany advances	12.7	(4.9)
Net cash (used in) provided by financing activities	34.4	(4.9)
Effect of exchange rate changes on cash and cash equivalents	(3.2)	1.2
Net increase in cash and cash equivalents	17.5	(16.5)
Cash and cash equivalents balance-beginning of period	63.9	96.2
Cash and cash equivalents balance-end of period	81.4	79.7
DFG And Guarantors [Member]
Cash flows from operating activities:
Net (loss) income	(25.7)	(40.7)
Adjustments to reconcile net loss to net cash provided by operating activities:
Undistributed income of subsidiaries	0	0
Depreciation and amortization	4.5	8.2
Goodwill and other intangible assets impairment charge	22.1	36.6
Provision for loan losses	9.6	8.2
Non-cash stock compensation	0	0
Gain on sale of subsidiary	0
(Gain) loss on disposal of fixed assets	0.1	0.8
Unrealized foreign exchange loss (gain)	(0.3)	(0.1)
Deferred tax (benefit) provision	3.4	3.4
Accretion of debt discount and deferred issuance costs	0	0
Change in assets and liabilities (net of effect of acquisitions):
(Increase) decrease in pawn loans fees and service charges receivable	0	0
Increase in finance and service charges receivable	(1.2)	(1.0)
(Increase) decrease in other receivables	5.7	(0.8)
(Increase) decrease in prepaid expenses and other	(2.0)	(2.8)
Increase (decrease) in accounts payable, accrued expenses and other liabilities	4.4	(3.9)
Intercompany advances	(6.3)	6.9
Net cash provided by operating activities	14.3	14.8
Cash flows from investing activities:
Net increase in consumer loans	(5.3)	(6.2)
Originations of pawn loans	0	0
Repayment of pawn loans	0	0
Acquisitions, net cash acquired	0	0
Additions to property and equipment	(5.9)	(4.9)
Proceeds from sale of a subsidiary, net of cash disposed	0
Intercompany advances	30.7	29.0
Net cash provided by (used in) investing activities	19.5	17.9
Cash flows from financing activities:
Proceeds from the exercise of stock options	0	0
Proceeds from termination of cross currency swap	0
Net (decrease) increase in revolving credit facilities	2.0	(8.5)
Purchase of 2.875% Senior Convertible Notes due 2027		0
Repayment of long-term debt	0
Repurchase of common stock	0	0
Contingent consideration payments		0
Payments of Financing Costs	0	0
Intercompany advances	(13.4)	(27.7)
Net cash (used in) provided by financing activities	(11.4)	(36.2)
Effect of exchange rate changes on cash and cash equivalents	0
Net increase in cash and cash equivalents	22.4	(3.5)
Cash and cash equivalents balance-beginning of period	25.4	35.2
Cash and cash equivalents balance-end of period	47.8	31.7
Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net (loss) income	(149.0)	24.3
Adjustments to reconcile net loss to net cash provided by operating activities:
Undistributed income of subsidiaries	0	0
Depreciation and amortization	22.2	24.8
Goodwill and other intangible assets impairment charge	105.2	0
Provision for loan losses	133.1	103.3
Non-cash stock compensation	0	0
Gain on sale of subsidiary	(1.6)
(Gain) loss on disposal of fixed assets	0.3	2.5
Unrealized foreign exchange loss (gain)	(13.0)	0.8
Deferred tax (benefit) provision	(1.8)	(7.1)
Accretion of debt discount and deferred issuance costs	0	0
Change in assets and liabilities (net of effect of acquisitions):
(Increase) decrease in pawn loans fees and service charges receivable	0.4	(2.1)
Increase in finance and service charges receivable	(19.7)	(15.2)
(Increase) decrease in other receivables	(9.2)	6.0
(Increase) decrease in prepaid expenses and other	9.2	2.7
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(5.2)	(12.9)
Intercompany advances	16.0	(0.5)
Net cash provided by operating activities	86.9	126.6
Cash flows from investing activities:
Net increase in consumer loans	(72.7)	(100.7)
Originations of pawn loans	(229.3)	(225.0)
Repayment of pawn loans	238.4	219.1
Acquisitions, net cash acquired	(26.3)	(15.1)
Additions to property and equipment	(15.3)	(22.4)
Proceeds from sale of a subsidiary, net of cash disposed	7.2
Intercompany advances	0	(2.5)
Net cash provided by (used in) investing activities	(98.0)	(146.6)
Cash flows from financing activities:
Proceeds from the exercise of stock options	0	0
Proceeds from termination of cross currency swap	0
Net (decrease) increase in revolving credit facilities	9.2	3.5
Purchase of 2.875% Senior Convertible Notes due 2027		0
Repayment of long-term debt	(10.0)
Repurchase of common stock	0	0
Contingent consideration payments		(3.9)
Payments of Financing Costs	(1.6)	0
Intercompany advances	4.5	25.5
Net cash (used in) provided by financing activities	2.1	25.1
Effect of exchange rate changes on cash and cash equivalents	9.8	(1.8)
Net increase in cash and cash equivalents	0.8	3.3
Cash and cash equivalents balance-beginning of period	106.0	92.3
Cash and cash equivalents balance-end of period	106.8	95.6
Consolidation, Eliminations [Member]
Cash flows from operating activities:
Net (loss) income	147.6	(2.5)
Adjustments to reconcile net loss to net cash provided by operating activities:
Undistributed income of subsidiaries	(147.6)	2.5
Depreciation and amortization	0	0
Goodwill and other intangible assets impairment charge	0	0
Provision for loan losses	0	0
Non-cash stock compensation	0	0
Gain on sale of subsidiary	0
(Gain) loss on disposal of fixed assets	0	0
Unrealized foreign exchange loss (gain)	0	0
Deferred tax (benefit) provision	0	0
Accretion of debt discount and deferred issuance costs	0	0
Change in assets and liabilities (net of effect of acquisitions):
(Increase) decrease in pawn loans fees and service charges receivable	0	0
Increase in finance and service charges receivable	0	0
(Increase) decrease in other receivables	0	0
(Increase) decrease in prepaid expenses and other		0
Increase (decrease) in accounts payable, accrued expenses and other liabilities	0	0
Intercompany advances	0	0
Net cash provided by operating activities	0	0
Cash flows from investing activities:
Net increase in consumer loans	0	0
Originations of pawn loans	0	0
Repayment of pawn loans	0	0
Acquisitions, net cash acquired	0	0
Additions to property and equipment	0	0
Proceeds from sale of a subsidiary, net of cash disposed	0
Intercompany advances	3.8	(7.1)
Net cash provided by (used in) investing activities	3.8	(7.1)
Cash flows from financing activities:
Proceeds from the exercise of stock options	0	0
Proceeds from termination of cross currency swap	0
Net (decrease) increase in revolving credit facilities	0	0
Purchase of 2.875% Senior Convertible Notes due 2027		0
Repayment of long-term debt	0
Repurchase of common stock	0	0
Contingent consideration payments		0
Payments of Financing Costs	0	0
Intercompany advances	(3.8)	7.1
Net cash (used in) provided by financing activities	(3.8)	7.1
Effect of exchange rate changes on cash and cash equivalents	0	0
Net increase in cash and cash equivalents	0	0
Cash and cash equivalents balance-beginning of period	0	0
Cash and cash equivalents balance-end of period	$ 0	$ 0

CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
Current Assets
Cash and cash equivalents	$ 236.9	$ 196.2
Consumer loans, net:
Consumer loans	220.2	229.9
Less: Allowance for consumer loan losses	(45.4)	(39.7)
Consumer loans, net	174.8	190.2
Pawn loans, net of an allowance of $6.5 and $2.8	153.4	154.4
Loans in default, net of an allowance of $69.6 and $93.4	25.5	31.2
Other receivables	35.4	30.2
Prepaid expenses and other current assets	51.0	56.6
Current deferred tax asset	1.5	4.9
Total current assets	678.5	663.7
Fair value of derivatives	0	31.2
Property and equipment, net of accumulated depreciation of $185.7 and $210.4	127.6	122.8
Goodwill and other intangibles, net	766.6	866.4
Debt issuance costs, net of accumulated amortization of $14.8 and $12.8	15.3	16.6
Other	23.6	21.0
Total Assets	1,611.6	1,721.7
Current Liabilities
Accounts payable	39.4	52.7
Income taxes payable	24.7	17.7
Accrued expenses and other liabilities	100.6	93.2
Current portion of long-term debt	92.7	67.0
Deferred Tax Liabilities, Net, Current	0.5	0
Total current liabilities	257.9	230.6
Fair value of derivatives	12.5	0
Long-term deferred tax liability	47.0	49.8
Long-term debt	951.7	975.0
Other non-current liabilities	30.7	35.6
Stockholders equity
Common stock, $.001 par value: 100,000,000 shares authorized; 40,112,266 shares and 38,635,364 shares issued and outstanding at June 30, 2013 and March 31, 2014, respectively	0	0
Additional paid-in capital	433.4	447.3
(Accumulated deficit) retained earnings	(159.0)	(1.5)
Accumulated other comprehensive (loss) income	37.4	(15.1)
Total stockholders’ equity	311.8	430.7
Total Liabilities and Stockholders’ Equity	$ 1,611.6	$ 1,721.7