SquareTwo Financial Corp

CIK:0001505966|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues
Purchased debt revenue, net									$ 202,611	$ 247,035	$ 337,578
Other revenue									42	56	675
Total revenues	$ 50,873	$ 50,532	$ 48,839	$ 52,409	$ 51,736	$ 56,999	$ 66,847	$ 71,509	202,653	247,091	338,253
Expenses
Purchased debt expense									114,887	147,813	189,184
Court costs, net									26,857	34,719	40,155
Salaries and payroll taxes									34,601	30,552	26,348
General and administrative									13,654	14,457	14,418
Depreciation and amortization									6,753	6,883	7,986
Impairments of goodwill and intangible assets									84,606	0	0
Total operating expenses	126,882	48,240	50,771	55,465	54,611	57,179	61,131	61,503	281,358	234,424	278,091
Operating (loss) income	(76,009)	2,292	(1,932)	(3,056)	(2,875)	(180)	5,716	10,006	(78,705)	12,667	60,162
Other expenses
Interest expense									44,609	44,217	45,984
Other expense									338	440	3,872
Total other expenses	11,241	11,250	11,284	11,172	11,251	11,129	11,162	11,115	44,947	44,657	49,856
(Loss) income before income taxes	(87,250)	(8,958)	(13,216)	(14,228)	(14,126)	(11,309)	(5,446)	(1,109)	(123,652)	(31,990)	10,306
Income tax benefit (expense)	9,120	(766)	(1,243)	(1,160)	(1,143)	(1,699)	(2,071)	(1,037)	5,951	(5,950)	(5,243)
Net (loss) income	(78,130)	(9,724)	(14,459)	(15,388)	(15,269)	(13,008)	(7,517)	(2,146)	(117,701)	(37,940)	5,063
Less: Net income attributable to the noncontrolling interest	408	509	419	387	380	409	399	341	1,723	1,529	1,401
Net (loss) income attributable to SquareTwo	$ (78,538)	$ (10,233)	$ (14,878)	$ (15,775)	$ (15,649)	$ (13,417)	$ (7,916)	$ (2,487)	$ (119,424)	$ (39,469)	$ 3,662

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities
Net (loss) income	$ (117,701)	$ (37,940)	$ 5,063
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Impairments of goodwill and intangible assets	84,606	0	0
Depreciation and amortization	6,753	6,883	7,986
Amortization of loan origination fees and debt discount	3,303	2,997	3,202
Recovery of step-up in basis of purchased debt	0	0	107
Purchased debt valuation allowance (reversals) charges	(6,719)	1,784	(6,648)
Stock option expense	34	79	128
Amortization of prepaid and other non-cash expenses	6,032	4,532	4,658
Deferred tax provision, net of valuation allowance	(9,757)	1,472	335
Changes in operating assets and liabilities:
Income tax payable/receivable	577	(8)	(1,870)
Restricted cash	1,210	2,347	4,899
Other assets	(5,543)	(5,052)	(4,688)
Accounts payable and accrued liabilities	(2,479)	(3,797)	1,873
Net cash (used in) provided by operating activities	(39,684)	(26,703)	15,045
Investing activities
Investment in purchased debt	(98,247)	(126,747)	(258,110)
Proceeds applied to purchased debt principal	157,500	175,695	241,561
Payments to branch offices related to asset purchase program	(259)	0	(297)
Net proceeds from notes receivable	0	0	77
Investment in property and equipment, including internally developed software	(5,224)	(4,747)	(5,012)
Net cash provided by (used in) investing activities	53,770	44,201	(21,781)
Financing activities
Repayments of investment by Parent, net	0	(150)	0
Payments on notes payable, net	(741)	(763)	(596)
Proceeds from line of credit	341,668	421,308	581,644
Payments on line of credit	(345,539)	(427,875)	(568,787)
Origination fees on line of credit	(200)	(767)	(1,035)
Payments on capital lease obligations	(1,731)	(1,726)	(1,478)
Net cash (used in) provided by financing activities	(6,543)	(9,973)	9,748
Subsequent Events [Abstract]
Increase in cash and cash equivalents	7,543	7,525	3,012
Impact of foreign currency translation on cash	(3,636)	(1,227)	(1,171)
Cash and cash equivalents at beginning of period	15,677	9,379	7,538
Cash and cash equivalents at end of period	19,584	15,677	9,379
Supplemental cash flow information
Cash paid for interest	41,390	41,343	43,005
Cash paid for income taxes	3,196	4,481	6,779
Property and equipment financed with capital leases and notes payable	$ 1,539	$ 1,292	$ 2,407

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 19,584	$ 15,677
Restricted cash	2,927	4,137
Trade receivables, net of allowance for doubtful accounts of $15	1,495	1,851
Notes receivable	163	194
Purchased debt, net	167,494	222,700
Property and equipment, net	23,445	23,189
Goodwill and intangible assets	86,457	171,348
Other assets	6,253	8,991
Total assets	307,818	448,087
Liabilities:
Accounts payable, trade	1,939	3,225
Payable from trust accounts	1,538	1,404
Taxes payable	1,034	475
Accrued interest and other liabilities	22,152	24,499
Deferred tax liability, net	1,651	11,408
Line of credit	134,831	138,702
Notes payable, net of discount	289,348	289,370
Obligations under capital lease agreements	2,118	2,310
Total liabilities	$ 454,611	$ 471,393
Commitments and contingencies
Deficiency:
Common stock, par value $0.001 per share; 1,000 shares authorized, issued and outstanding	$ 0	$ 0
Additional paid-in capital	190,225	190,191
Accumulated deficit	(335,247)	(215,823)
Accumulated other comprehensive loss	(9,456)	(3,636)
Total (deficiency) equity before noncontrolling interest	(154,478)	(29,268)
Noncontrolling interest	7,685	5,962
Total stockholder's (deficiency) equity	(146,793)	(23,306)
Total liabilities and stockholder's (deficiency) equity	$ 307,818	$ 448,087