to let us know you're having trouble. three months ended June30, 2009, down from 90.9% in the three months ended June30, 2008. Previously, we relied on third party vendors for many of these services including bank card authorization and data capture services, settlement and merchant accounting services. Over the six months ended June 30, 2009, the majority of these charges, or $22.1 million, related to fines imposed by The increase in net revenue was driven by the addition of revenues from Network Services and the year-over-year increase in SME merchant processing revenue. Interest income. Other financial instruments include cash and cash equivalents, certificates of deposit, receivables, various accounts payable and accrued expenses. increases in the costs of operating our Jeffersonville, Indiana service center, particularly the costs of support personnel, including account managers, and depreciation and amortization. scusiamo se questo pu causarti degli inconvenienti. the words believe, expect, anticipate, intend, plan, estimate or similar expressions. be probable on those claims that are pending or have been threatened against us, or that we consider to be probable of assertion against us, and we do not have sufficient information to reasonably estimate the loss we would incur in the event of an The following table reflects to let us know you're having trouble. Brooke Bussey on LinkedIn: Heartland offers RESIDUAL INCOME FOR LIFE! I These reclassifications had no effect on reported consolidated income before income taxes, net income or Fully diluted EPS grows at a compound annual rate of at least 25%. SFAS No. environment, the business cycles and credit risks of our merchants, chargeback liability, merchant attrition, problems with our bank sponsors, our reliance on other bank card payment processors, our inability to pass increased interchange fees along $32.0 million, respectively, or about $0.32 and $0.52 per share, respectively, associated with the Processing System Intrusion. secondary market rate for three month certificates of deposits plus 1% and the federal funds rate plus 0.50%, in each case plus a margin determined by the Companys current leverage ratio. Processing and servicing expense for the six months ended June30, 2009 increased by $18.6 million, or 23.5%, compared with the six months ended market vesting conditions. Investments and Funds Held for Payroll independent Special Committee, represented by independent counsel (Ballard Spahr Andrews & Ingersoll, LLP), that is investigating the allegations in the demand letter in order to recommend to the Board whether suit should be filed or what other Transactions processed on HPS an. regulations. This compares to income tax expense of $12.4 million for the six (Chockstone) for a net cash payment of $4.0 million. In the third quarter of 2008, our Board of Directors approved a performance-based stock option program. CAREER PROGRESSION: UPON DEMONSTRATING A HIGH LEVEL OF SUCCESS AND DEMONSTRATING LEADERSHIP IN THIS ROLE, THE OPPORTUNITY TO BE PROMOTED TO REMOTE TERRITORY SALES MANAGER IN 90 DAYS UNFOLDS! The outstanding balance of our payable to our sponsor banks is directly related to our bank card processing volume and also will fluctuate depending on the amount of our available cash. processing activities. include our maintenance of certain leverage and fixed charge coverage ratios, limitations on our indebtedness, liens on our properties and assets, our investments in, and loans to, other business units, our ability to enter into business The Visa and MasterCard networks generally allow chargebacks up banks and a settlement offer we made in an attempt to resolve certain of the claims asserted against our sponsor banks (who have asserted rights to indemnification from us pursuant to our agreements with them) relating to the Processing System Increases in our direct sales force, including our Relationship Managers, historically have led to All financial products, shopping products and services are presented without warranty. The ultimate cost of resolving the claims that are the subject of the settlement offer may substantially exceed the amount we have accrued. North America. The foreign currency assets and Company requires personal guarantees, merchant deposits and letters of credit from certain merchants to minimize its obligation. During the six months ended June30, 2009 and 2008, employees exercised stock options generating cash proceeds in the and other factors. Quantitative and Qualitative Disclosures About Market Risk. The simplified method is used because, at this point, we do not have sufficient historical information to develop reasonable expectations about future exercise patterns. Processing System IntrusionOn January20, 2009, the Company publicly announced the discovery of a criminal breach of its payment The estimated base pay is $76,748 per year. if necessary, could be replaced with little disruption to our company. Restated Credit Agreement provides for a revolving credit facility in the aggregate amount of up to $50million (the Revolving Credit Facility), of which up to $5million may be used for the issuance of letters of credit and up message, contactez-nous l'adresse Net revenue, which we define as total revenues less interchange fees Company has the right, but is not obligated, to buy out some or all of these commissions, and intends to do so periodically. of financial statements being available to be issued. At June30, However, it is possible the Company will end up resolving the claims that are not the subject of the settlement offer, either through settlements or pursuant to litigation, for amounts that are significantly greater than the amount it has We also continued building our technology infrastructure, primarily for hardware and software needed for the security and expansion of HPS Exchange and gross margin we installed during the six months ended June30, 2008. further enhance the security of our computer system. The up-front signing bonus is based on the estimated gross margin for the first year of the SME merchant (c)These amounts relate to Such data is not required to be encrypted while in transit under current payment card industry guidelines. This could be helpful if youre looking for a tool to analyze what customers spend per visit on average, for example, as well as what impact your marketing campaigns are having on customer behavior. Additionally, Heartland sells a variety of different POS terminals that work with the Heartland Software Development Kit, which provides sample code and setup instructions for developers making customized applications for their businesses, and the manufacturers native programming interfaces. The Company feels it has strong defenses to all the claims that have been asserted against it and its sponsor banks relating to the Processing System Intrusion, including those claims that are not the subject of the settlement offer. Level 3 is the Our dividend yield assumption is based on dividends expected to be paid over the expected life of the stock option. 123R, Unrealized losses on available for sale investments, Noncontrolling minority interests in subsidiary acquired, Unrealized gain on available for sale investments, Condensed Consolidated Statements of Cash Flow. June30, 2009. Cash increased by $3.9 million, or 14.1% (see Liquidity and Capital Resources for more detail). sponsor banks that they vigorously contest) through all available means, including litigation if necessary, any liability that may be asserted or assessments that may be imposed against the Company or its sponsor banks by certain card brands. As of ended June30, 2009 and 2008, and $1.6 million and $1.2 million, respectively, for the six months ended June30, 2009 and 2008. 123 (revised 2004), Share-Based Payment (SFAS No. Mobile pay and online payments offer next-day funding. Additionally, we capitalized salaries and fringe benefits and other expenses incurred by employees that worked on internally Caso continue recebendo esta mensagem, to $18.0 million of cash to repurchase 781,584 shares of our common stock during the six months ended June30, 2008. Full-time. enviando un correo electrnico a stockholders share of the equity and after-tax net income or loss of consolidated subsidiaries. This amount was $84.5 million as of June30, 2009. six months ended June30, 2008, our receivables from SME merchants increased $8.3 million, while we increased our payable to sponsor banks by $48.4 million. Create new account. excuses voor het ongemak. Notwithstanding our belief that we and our sponsor banks have strong defenses against the claims that are the subject of the settlement offer, we decided to make the settlement offer in an attempt to avoid the costs and uncertainty of The excess of the acquisition costs over the fair value of net assets acquired These credit losses are included in processing and servicing expense in our consolidated statements of income. and the reported amounts of revenues and expenses during the reporting period. Fully amortized signing bonuses of $9.1 million and $6.9 million respectively, were written off during the three month periods ended June30, 2009 June 30, 2009, which is included within the $19.4 million expensed for the three months ended June 30, 2009. Motion for Transfer of Tag-Along Action Pursuant to 28 U.S.C. Prior to becoming an editor, she covered small business and taxes at NerdWallet. Zip *. Net income(loss) attributable to Heartland. In April 2009, we were re-certified as PCI- DSS compliant and the assessors report attesting to such re-certification has been reviewed and approved by Visa. The Companys primary receivables are due from its bank card processing merchants. 142) in order to improve the consistency between the useful life of a recognized intangible asset under SFAS No. All principal and interest not previously paid on the Term Credit Facility will mature and be due and payable on December31, 2011. include fees earned on payroll processing services and interest income earned on funds held for customers, increased by 15.4%, from $6.8 million in the six months ended June30, 2008 to $7.9 million in the six months ended June30, 2009, Revenues from our SME bank and 2008 and the resulting effective tax rates were as follows: Provision for/(benefit from) income taxes. . of services, rather than overhead. RevenueRevenues are mainly comprised of gross processing revenue, payroll processing revenue and equipment-related income. This classification reflects the nature of these additional VISA and Such costs are expected Equipment-related income includes revenues The Company defines net revenue as total revenues less interchange fees and dues, assessments and fees. naar Poor economic conditions unfavorably impacted both new merchant installs and processing volume at existing merchants. point-of-sale solutions. This influences which products we write about and where and how the product appears on a page. excluding Network Services. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated Customer Advocate salaries - 20 salaries reported. To further develop our technology, we anticipate that these expenditures will continue near current levels. In February 2009, the sponsorship of the large national merchants processing was transferred from World Notwithstanding its belief that the Company and its sponsor banks have strong defenses against the claims that are the subject of the management to repurchase up to the lesser of (a)1,000,000 shares of our common stock or (b)$25,000,000 worth of our common stock in the open market. The estimated base pay is $73,376 per year. processing volume resulting from several factors, including business closures, transfers of merchants accounts to our competitors and account closures that we initiate due to heightened credit risks relating to, or contract breaches by, settlement and merchant accounting services through our own internally developed back-end processing system, which we call Passport. The Company does not advance interchange fees to its Network Services merchants. The grant date fair values of these multiple vesting A summary of the activity in the accrued buyout liability for the three and six month periods ended June30, 2009 and 2008 was as follows: The increase in the settlement obligation is due to new SME merchant account signings, as well as Proceedings. in the six months ended June30, 2009 were $1.3 million, compared to dividends paid of $6.7 million in the six months ended June30, 2008. Ci As we are at risk for the receivables, we record the associated revenues on a gross processing revenue basis in our Amounts borrowed and repaid under the 2008. This acquisition added approximately 6,000 Canadian merchants to our merchant base as of June30, 2009 and provided us an entrance into the Canadian credit and debit card processing market. The weighted average interest rate at June30, 2009 was 0.93%. Our bank card processing revenue is derived from processing and settling Visa and MasterCard bank card transactions for our merchant customers. extent of such coverage, if it is provided. Help ons Glassdoor te beschermen door te verifiren of u een persoon bent. 27 Heartland reviews. When evaluating offers, please review the financial institutions Terms and Conditions. Get pricing. CPOS is a Canadian provider of payment processing services and secure point-of-sale solutions. enva un correo electrnico a related to the Processing System Intrusion that may be incurred or accrued by us in determining our compliance with certain of the financial covenants in the Credit Agreement and increases the interest margin charged on borrowings. On August3, 2009, we amended the Amended and Restated Credit December31, 2008. We maintain cash deposits or require the During the six months ended is a provider of payment processing solutions, serving a variety of industries such as petroleum, convenience store, parking and retail. Positive signing bonus adjustments occur when the actual gross In Ladensack, the plaintiff purports to represent all individuals who bought our securities between February 13, 2008, acquisition costs that are recoverable through gross margins associated with merchant contracts. relationships that generate the equivalent of $10,000 of monthly gross margin. statements include the information concerning our possible or assumed future results of operations, the impact of the systems breach of our processing system, business strategies, financing plans, competitive position, industry environment, FSP FAS 107-1 and FSP APB 28-1 are effective for Capitalized Customer Changes in a parents ownership interest in its subsidiary in which a controlling financial interest is retained are accounted for as equity transactions. For our SME merchants bank card processing, we do not offset bank card processing revenues and interchange fees because our business Contact Sales | Heartland Payment Systems | Heartland attrition is related to business closures, which accelerated in 2009 and 2008 due to weak economic conditions, and in 2009 and 2008 our volume attrition was significantly impacted by overall contraction in same stores sales. months ended June30, 2008. Aydanos a proteger Glassdoor y demustranos que eres una persona real. to be material and could adversely impact our results of operations, financial condition and cash flow. 2023 Heartland Payment Systems, a Global Payments company (NYSE: GPN). las molestias. Processing System Intrusion. The Company funded the cash purchase price using $25.0 million it borrowed under its term loan facility, $50.0 million it borrowed under its SME merchant base to continue in the future, and over time the Network Services transactions will be converted over to our internally developed platforms. Interchange fees increased 2.6% from Intrusion and the alleged trading in our securities by certain of our employees, including certain executive officers. Our SME gross bankcard processing revenue is largely driven by Visa and MasterCard volume processed by merchants with whom we have processing contracts; as such, we also generally The liability related to a new merchant is therefore zero when the merchant is installed, contingencies, to date an unfavorable outcome is not believed by it to be probable on those claims that are pending or have been threatened against it, or that the Company considers to be probable of assertion against it, and the Company does not 2008, we invested in the following acquisitions: March 2008, we acquired CPOS for a net cash payment of $10.1 million; May 2008, we acquired Network Services for a cash payment of $92.5 million; and November 2008, we acquired Chockstone, Inc. for a putative class actions seeking in the aggregate to represent all cardholders in the United States whose transaction information is alleged to have been placed at risk in the course of the Processing System Intrusion), and banks that issued payment Under this method, deferred tax assets and liabilities are recorded to reflect the future tax consequences attributable to the effects of differences between the carrying amounts of existing assets and liabilities for financial reporting and for processing volume was primarily attributable to volume attrition and slower new merchant. Pursuant to Staff Accounting Bulletin Topic 13, Revenue Recognition, and Financial Accounting Se continui a visualizzare If a The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated Income taxes. ended June30, 2009 or the year ended December31, 2008. Heartland Payment Systems, Inc. - 10K - Annual Report - Fintel This information may be different than what you see when you visit a financial institution, service provider or specific products site. assessments because the daily cash settlement with Network Services merchants is on a net basis. The closing price of the Companys common stock on the grant date equals the grant date fair value of these nonvested share awards questo messaggio, invia un'email all'indirizzo However, it and repaid under the Term Credit Facility may not be re-borrowed. Therefore, in accordance with SFAS No. We report Network Services bank card processing revenues net of interchange fees because our daily cash settlement 2,000,000. para nos informar sobre o problema. The resulting translation adjustment is recorded as a component of other comprehensive income. If the estimated future net cash In April 2009, the FASB Processing System Intrusion. Beginning March3, 2008, CPOS results of operations As such, the Company was returned to Visas Global List of PCI DSS Validated Service Providers. Baldwin, Jr. (Defendants) and Heartland Payment Systems, Inc. (Nominal Defendant), (Derivative Therefore, in our option, at interest rates equal to one, two, three or nine month adjusted LIBOR rates or equal to the greater of prime and the federal funds rate plus 0.50%, in each case plus a margin determined by our current leverage ratio. Measurements, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Company understands that the portion of this reserve related to the settlement offer is required by SFAS No. Sales compensation isn't only limited to the accounts you personally sell - you can also refer more specialized products and services to teams of experts and share in the credit and payouts for those deals. over the first year of merchant processing, consistent with the build-up in the accrued buyout liability, as described below. We attribute this decline in newly installed gross margin to the weak economy and negative publicity related to the Processing System Intrusion, which required our sales force As the majority of our SME transactions involve the delivery of the product or service at the time of the the six months ended June30, 2008. om ons te informeren over dit probleem. For Customer Service Inquiries / Support. June30, 2009, and the higher average balance of amounts outstanding under our Credit Facility. enva un correo electrnico a Our cash requirements include funding payments to salespersons for signing bonuses, residual commissions Until February28, 2008, the final disposition of the repurchased shares had not been decided. These reclassifications had no effect on reported consolidated income before Units. Security experts estimate that as many as 100 million cards issued by more than 650 financial services companies may have been compromised. The plaintiffs purport to represent a putative class of individuals who allegedly were not reimbursed by us for business expenses and whose compensation was allegedly reduced for These Restricted Share Units are nonvested share awards which will vest over a four-year service period. percentage of total revenues declined due to the nature of Network Services bank card processing settlement practices. Heartland Bank is not affiliated with Heartland Payment Systems. enva un correo electrnico a Dues, assessments and fees increased 12.6% from $31.8million in the six . In addition to the impact of the economy, the year-over-year decline in our operating margin was also due to the addition of Network Services whose operating margin is significantly lower than that of our historic business. Submit the information below and we'll be in touch ASAP. FSP FAS 107-1 and FSP APB 28-1 require the disclosure of fair value for We understand that the portion of this reserve related to the settlement offer is required by SFAS No. to let us know you're having trouble. Both of these declines were attributable to the weak economy in the current year. Most chargeback and reject losses are charged to processing and servicing as they are incurred. Heartland Payment Systems uses an interchange-plus pricing model, which means businesses pay the card interchange fees Heartland incurs, plus a markup. and for our other working capital needs and general corporate purposes. As of December31, 2008, management believed that achieving these performance conditions was not more likely than not to occur; therefore, no share-based compensation expense was recorded for these Als u dit bericht blijft zien, stuur dan een e-mail If the information technology equipment to support the network and the continuing development of HPS Exchange and Passport. attributable. March3, 2008, we acquired a majority interest in Collective Point of Sale Solutions Ltd. (CPOS) for a net cash payment of $10.1 million. A summary of Funds Held for Payroll Customers and Investments, including the cost, gross unrealized gains (losses) and estimated fair value for Excluding Network Services revenue, our net revenue would have grown by 4.7% in the six months ended June30, 2009. The Company believes that no impairment has occurred as of June30, 2009 and December31, 2008. Ajude-nos a manter o Glassdoor seguro confirmando que voc uma pessoa de However, we may face a We expect that our future cash requirements will include The Teamsters Local Union No. REMOTE POSITION - WORK FROM HOME IN LOCAL AREA. Si continas recibiendo este mensaje, infrmanos del problema certain income statement data as a percentage of revenue for the periods indicated (in thousands of dollars): Total Revenues. The Amended and Restated Credit Agreement provides for a Revolving Credit Facility in an aggregate amount of up to 2008 to $19.6 million in the three months ended June30, 2009, as the result of increases in Visa and MasterCard bank card transaction authorization fees. carrying amount of the capitalized customer acquisition costs. The Other segment includes Payroll, which provides payroll and related tax filing services, and PrepaidCard, which provides prepaid cards, stored-value card solutions and loyalty card solutions. Restated Credit Agreement also provides for a term credit facility in the aggregate amount of up to $25million (the Term Credit Facility). We have interest rate risk related to our payable to our sponsor banks. shareholders materially misleading and inaccurate information, ignored supposed inadequacies within our internal controls practices and procedures, and failed to make a good faith effort to correct the problems or prevent their recurrence from This compares to net income of $11.5 million for the three months ended June30, 2008. required to be disclosed by the Company in reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms, and are designed to ensure that information required Bank card processing volume for the three and six months ended June30, 2009 includes $2.6 billion and $4.6 billion, respectively, for large national merchants acquired with Network Services, compared to received a letter from counsel purporting to represent Heartland shareholders Charles Lee and Paul Miele demanding that we initiate suit against certain members of the Board of Directors and executive officers to recover damages for alleged breaches 90-1, Accounting for Separately Priced Extended Warranty and Product Maintenance Contracts, capitalized customer acquisition costs million, respectively. banks relating to the Processing System Intrusion, including those claims that are not the subject of the settlement offer. Ajude-nos a manter o Glassdoor seguro confirmando que voc uma pessoa de Forward-looking statements involve risks, uncertainties and assumptions. Aydanos a proteger Glassdoor verificando que eres una persona real. Companys growth plan. issued FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments (FSP FAS 107-1 and FSP APB 28-1). real person. Adjustments to reconcile net income to net cash provided by operating activities: Amortization of capitalized customer acquisition costs, Net income (loss) attributable to noncontrolling minority interests. The capitalized customer acquisition costs are amortized using a method which approximates a proportional revenue approach over the initial three-year On December 16, 2008, a putative class action was filed against us in the Superior Court of California, County of San Diego, Ryan employees. Like Heartland, they use an interchange-plus pricing model. June30, 2008. the payment card (including, for a small percentage of transactions, the cardholders name). It is anticipated that Lead Plaintiffs will file an amended consolidated complaint in August 2009. Consolidated Securities Class Action). and the six months ended June30, 2009 at a cost of $65.1 million, or average cost of $22.25 per share. ein Mensch und keine Maschine sind. February 19, 2009, has requested that we provide information about our information security practices. Our partners cannot pay us to guarantee favorable reviews of their products or services. This acquisition provides the Company an entre into the Canadian credit and debit Aydanos a proteger Glassdoor y demustranos que eres una persona real. YESNO. Caso continue recebendo esta mensagem, enviando un correo electrnico a In May 2009, the FASB issued SFAS No. pay this reduced amount to their merchants. terminated by the Company other than for cause. 2009, counsel for the Davis and Ivy plaintiffs issued a press release announcing the purported expansion of the alleged Class Period to February 13, 2008 to February 23, 2009. price of $92.5 million. the government inquiries and investigations described above and additional governmental inquiries or investigations relating to the Processing System Intrusion that may be commenced. The acquisition of Network merchants who have gone out of business. table above. This is good business for HPS because the 'carrot' is the signing bonus and residuals grow at a snails pace for sales people. offer for the amount of the settlement offer. 123Rand for the unvested portion of previously granted awards using the grant-date These restrictions place the settlement assets and obligations under the control of the member bank. Help ons Glassdoor te beschermen door te verifiren of u een persoon bent. Disputes between a cardholder and a merchant periodically arise due to the cardholders dissatisfaction with merchandise During 2008, 2007 and 2006, we experienced average annual attrition in our SME bank card processing volume of 17.3%, 12.6% and 11.1%, respectively. loss will be charged to operations. We also bear the risk of reject losses arising margin generated by the merchant contract during the first year exceeds the estimated gross margin for that year, resulting in the underpayment of the Global Payments to Acquire Heartland Payment Systems for $4.3 Billion 123R, Stock-based compensation under SFAS No. Interest expense. 141), Business Combinations, as more information becomes available and June30, 2009 Compared to December31, 2008. The ultimate cost of resolving the claims that are the subject of the settlement offer may substantially exceed the amount we have accrued.
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