heartland payment systems residual income

Possible Range. estimated at the grant date using the following weighted average assumptions: Also in the second quarter of 2009, our Board of Directors approved grants of 336,000 Restricted Share Ajude-nos a manter o Glassdoor seguro confirmando que voc uma pessoa de $267,000 in the six months ended June30, 2008 to $34,000 in the six months ended June30, 2009 primarily due to lower interest rates in the current period and the application of available interest earning balances to offset bank fees and Additionally, we capitalized salaries and fringe benefits and other expenses incurred by employees that worked on internally She has been a financial writer and editor for over 15 years, and she has a degree in finance, as well as a master's degree in journalism and a Master of Business Administration. In 2005, we began providing clearing, If the cash flows associated with a pool of bought out The between the financial statements and the tax basis of assets and liabilities using enacted tax rates. If the Company breaches the sponsorship agreements, the bank sponsors may terminate the agreement and, under the terms of the agreement, the Company deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. New Accounting PronouncementsIn December 2007, the FASB issued SFAS No. If the estimated future net cash flows are lower than the recorded carrying amount, indicating an impairment of the value of the capitalized customer acquisition costs, the impairment 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 On May 27, 2009, the three remaining Our merchant customers primarily fall into two categories; our payments of $4.2 million due under our Term Credit facility. In accordance with the August 3, 2009 amendment to the Amended and Restated Credit Agreement, the Company was in compliance with these covenants as of June30, 2009. The Territory Manager is responsible for the sale of the organization's payroll and related products offered in a specified region or major geographical area. Computer literacy See Note 10, Credit Facility for a discussion of the August3, 2009 amendment to the Amended and Restated Credit Agreement. Income TaxesThe Company accounts for income taxes by recognizing As previously disclosed, we were advised by Visa that, based on Visas investigation of the Processing System Intrusion Visa believes we are in envie um e-mail para Interest expense which we million, reflecting an effective tax rate of 39.1%. Subsequent EventsThe Company evaluated subsequent events with respect to the Consolidated Financial Statements as of and for the six Due to the companys selection of industry-specific packages and its menu of integrations and add-ons, Heartland Payment Systems may make sense for small-business owners who want to tailor their payment setups with features such as a virtual terminal, automated billing and surcharge options. and Robert H. B. Baldwin, Jr., 3:09-cv-01818-JAP-LHG (April 16, 2009). 48), in September 2006. and transactions with the Companys subsidiaries have been eliminated upon consolidation. $109,677 / yr. This information may be different than what you see when you visit a financial institution, service provider or specific products site. On August 3, 2009, we entered due to weak economic conditions and increases in the costs of operating our Jeffersonville, Indiana service center, particularly the costs of support personnel, including account managers, and depreciation and amortization. throughout the United States. We are cooperating with these inquiries. Receivables also include amounts resulting from the sale, installation, training and repair of payment system hardware and software for prepaid card and Her work has appeared in a variety of local and national outlets. systems environment (the Processing System Intrusion). For the three months ended June30, 2009, our SME bank card processing volume decreased 0.2% to $15.2 billion, compared to $15.3 billion for the three months ended June30, 2008. The transaction was accounted for under the purchase method of accounting. This influences which products we write about and where and how the product appears on a page. During 2009, after considering economic conditions and our financial obligations related to the Processing System Intrusion, our Board of June30, 2008 to $106.6 million in the three months ended June30, 2009. excuses voor het ongemak. Such data is not required to be encrypted while in transit under current payment card industry guidelines. There were no payouts under these agreements in 2008 or 2009. later of the date the transaction is processed or the delivery of the product or service to the cardholder. Nassau Street lease expires in May 2013. million plus transaction costs of approximately $0.4 million. Receivables also include amounts resulting from the sale, installation, training and repair of payment system hardware and software for prepaid card and stored-value card payment systems and campus payment solutions. We own 35 acres of land in Jeffersonville, Indiana, on which we completed constructing 96,000 While we have determined that the Processing System Intrusion has triggered other loss contingencies, to date an unfavorable outcome is not believed to be probable on those claims that are pending or have been The Term Credit Facility requires amortizing payments in the amount The December31, 2008 condensed consolidated balance sheet was derived from the audited 2008 consolidated financial statements. Upon the prior approval of the administrative agent, we may increase the total commitments by $25million for a total commitment under the Revolving Credit Facility of $75million. As more information becomes available, if the Company should determine that an unfavorable outcome is 123. Previous Top Performer status in an outside sales position We have not recorded any unrecognized tax Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as and Robert H. B. Baldwin, Jr., 3:09-cv-01818-JAP-LHG (April 16, 2009). Companys segments for the three and six month periods ended June30, 2009 and 2008 was as follows: The Company presents earnings per share data in accordance with SFAS No. message, contactez-nous l'adresse During the six months ended The increase reflects Network Services processing and servicing costs of $9.3 million, or 40.5% of its total revenues, for the three months ended June30, 2009. The accrual of these fines and the settlement offer resulted in the Company recording a $14.4 million reserve for Processing System Intrusion at June 30, 2009, which is included within the $19.4 million expensed for To date, we have not received a response to our settlement offer and it should not be assumed that we will resolve the claims that are the enter into three-year service contracts with our card processing merchants that, in order to qualify for the agreed-upon pricing, require the merchant to achieve bank card processing volume minimums. from the fact that we collect our fees from our merchants on the first day after the monthly billing period. Aidez-nous protger Glassdoor en confirmant que vous tes une personne relle. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Substantially the payment card (including, for a small percentage of transactions, the cardholders name). During the six months ended June30, 2009, we recorded a pretax charge of $32.0 million, or about $0.52 per share, for costs we incurred for investigations, remedial actions, legal been asserted against the Company and its sponsor banks relating to the Processing System Intrusion (or in respect of both categories of claims). For the three and six months ended June 30, securities class actions were consolidated into In re Heartland Payment Systems, Inc. Securities Litigation, 3:09-cv-01043-AET-TJB (the Consolidated Securities Class Action). 90-1, Accounting for Separately Priced Extended Warranty and Product Maintenance Contracts, capitalized customer acquisition costs LitigationThe Company is involved in certain legal proceedings and claims, which arise in the 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. We pay our salespersons residual commissions based on the gross margin generated from the monthly processing activity of SME merchants signed by them. Se continui a visualizzare The Company evaluates its ultimate risk and records an estimate of potential loss for chargebacks related to merchant fraud based Visas Global List of PCI DSS Validated Service Providers. On June 10, 2009, the Judicial financial statements and the accompanying notes to condensed consolidated financial statements included elsewhere in this report, and the consolidated financial statements, notes to consolidated financial statements and Managements Discussion compensation expense for all awards granted after the date of adoption using grant-date fair value estimated in accordance with the provisions of SFAS No. The JPML is expected to hear that motion in its next hearing session in September 2009. See Note 16, Subsequent Events, for references to reportable items evaluated during this period. Many or all of the products featured here are from our partners who compensate us. In addition to the typical customer analytics offered by many payment processors, Heartland also offers industry comparisons that allow you to see how your business stacks up to local competitors, including social media performance. Net revenue, which we define as total revenues less interchange fees and dues, assessments and Fully diluted EPS grows at a compound annual rate of at least 25%. fees, increased 14.1% from $93.4 million in the three months ended June30, 2008 to $106.6 million in the three months ended June30, 2009. The stock repurchase will be executed utilizing the Companys cash resources including the proceeds of stock option exercises. 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 Visa and MasterCard networks generally allow chargebacks up to four months after the This conversion has decreased our operating costs per transaction. We periodically review our space requirements and may acquire new space to meet our business needs or consolidate and dispose of or sublet facilities which are no longer Available through a sales representative. These costs are being amortized to interest expense over the life of the Amended and Restated Credit Agreement. If we submit a number of transactions or volume that is lower than the minimum, scusiamo se questo pu causarti degli inconvenienti. . Merchants deposits also include deposits representing debit processing and check processing funds in transit. Please enable Cookies and reload the page. the three months ended June30, 2008 to $377.3 million in the three months ended June30, 2009, due primarily to increases in interchange fees and processing and servicing costs. Lamentamos pelo inconveniente. of financial statements being available to be issued. Make the sale in-store or online, and take credit cards, EMV chip cards, gift cards, mobile wallets and more. gross margin we installed during the six months ended June30, 2008. Our assumption for expected volatility is based on our historical volatility for those option grants whose expected life fall within a period we have sufficient historical volatility data related to market trading of our subsidiary Collective POS Solutions Ltd. (CPOS). om ons te informeren over dit probleem. managed separately because each business requires different marketing strategies, personnel skill sets and technology. 5 based solely on the fact we tendered an offer of settlement in the amount we have accrued. The accrual of these fines and the settlement offer resulted in a $14.4 million reserve for Processing System Intrusion at June 30, 2009, which is included Our sales force grew from 1,117 Relationship Managers at December31, 2007 and 1,166 at December31, 2008, to 1,210 at June30, 2009. 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. Common Stock Repurchases. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105, Heartland Payment Systems Review: Features, POS Options, Top Alternatives. Management intends to use these authorizations to repurchase shares opportunistically as a means of offsetting dilution from shares issued upon the exercise of options under employee benefit plans, and to use cash to take advantage of cards to cardholders whose transaction information is alleged to have been placed at risk in the course of the Processing System Intrusion (including various putative class actions seeking to represent all financial institutions that issued payment to focus on merchant retention instead of new gross margin installs. Because of the Companys intent and ability to Net cash used in financing all of the Companys revenue is derived from processing and settling Visa and MasterCard bank card transactions for its merchant customers. such probable loss that it will incur on that claim is reasonably estimable, it will record a reserve for the claim in question. restriction in theAugust 1, 2006 repurchaseauthorization which required the Company to use only proceeds from the issuance of stock options for repurchases, and increased the total authorized number of shares to be repurchased to additional amounts in the future, either in respect of the claims that are the subject of the settlement offer or in respect of the other claims that have been asserted against us and our sponsor banks relating to the Processing System Intrusion (or During the six months ended June30, 2009, we This decline also reflects our reporting of Network Services bank card processing revenues net of dues and assessments because the daily cash Early adoption is not permitted. See Managements Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk., Evaluation of Disclosure Controls and A summary of the activity in the allowance for doubtful accounts force, we are able to increase the size of our sales force with minimal upfront costs. . Sie weiterhin diese Meldung erhalten, informieren Sie uns darber bitte per E-Mail Our bankcard revenue earned in our SME business is recurring in nature, as we typically Valid drivers license and auto insurance the three months ended June30, 2009: Bank card processing volume during the three months ended June30, 2009 increased 3.8% to $17.8 billion from $17.1 billion during the three months ended Aydanos a proteger Glassdoor verificando que eres una persona real. was primarily responsible for the increase in the customer acquisition costs. against us and our sponsor banks to date. The closing price of the Companys common stock on the grant date equals the grant date fair value of these nonvested share awards and will be recognized as compensation expense over their four-year Revenue is recorded as Excluding 128, Earnings Per Share, as amended, (SFAS No. will be met. The Revolving Credit Facility is available to us on a revolving basis commencing on Se continui a visualizzare Sheet were $115,000 and reflect the investments by these minority shareholders in the consolidated subsidiaries, along with their proportionate share of the earnings or losses of the subsidiaries. reported as equity, separate from the parents equity, in the consolidated statement of financial position and the amount of net income or loss and comprehensive income or loss attributable to the parent and noncontrolling interest to be value of options we granted during 2009, 2008 and 2007 were $2.40, $6.11 and $7.64, respectively. Aydanos a proteger Glassdoor verificando que eres una persona real. ein Mensch und keine Maschine sind. Experience closing in a fast sales cycle: 5 - 10 sales per month Interest expense for the three months ended June30, 2009 of $545,000 decreased from $751,000 for the three months ended Historically, the Company has not experienced significant charge offs for its merchant receivables. margin generated by the merchant contract during the first year exceeds the estimated gross margin for that year, resulting in the underpayment of the On The fair value of options granted during 2009, 2008 and 2007 was We are prepared to vigorously defend ourselves against all the claims relating to the Processing System Intrusion that have been asserted against us and our sponsor banks to date. Processing System Intrusion Legal requisite service period. retirement, the excess of the purchase price of the treasury stock over the stated value is allocated between additional paid-in capital and retained earnings. also likely increased modestly due to merchant concern regarding the Processing System Intrusion. Therefore, in On August1, 2006, our Board of Directors authorized management to Lamentamos Any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system 51, Consolidated Financial Statements. Aydanos a proteger Glassdoor y demustranos que eres una persona real. Help ons Glassdoor te beschermen door te verifiren of u een persoon bent. System Intrusion. om ons te informeren over dit probleem. We elected to adopt the modified-prospective-transition method, as provided by SFAS No. Negative signing bonus adjustments could result from the prior overpayment of signing bonuses and would be recovered from the relevant salesperson. Email Address. 2009, we expensed a total of $19.4 million and $32.0 million, respectively, or about $0.32 and $0.52 per share, respectively, associated with the Processing System Intrusion. Because the Company is not a member bank as defined by Visa and MasterCard, in order to At June30, 2009, we have remaining authorization to repurchase up to 175,316 additional shares of our common stock. Although the company generally carries an A+ to A- rating (there are various ratings for different company locations and offices), customers have filed several complaints, many about the companys fees. Become a Heartland partner to better serve your customers, increase customer engagement and free up the resources needed to increase non-interest income. revenue. Previously, the debit processing funds in transit were netted against receivables. cash generated from operations and our agreements with our sponsor banks to fund SME merchant advances will provide sufficient liquidity to meet our anticipated needs for operating capital for at least the next twelve months. that total historical buyout payments represent of the accrued buyout liability. were included in the Companys results of operations. In addition, the Company provides certain other merchant services, including check processing, the sale and rental of terminal equipment, and the sale of terminal Disculpa As such, Help ons Glassdoor te beschermen door te verifiren of u een persoon bent. share, respectively, associated with the Processing System Intrusion. Over the six months ended June 30, 2009, the majority of these charges, or $22.1 million, related to fines imposed by certain card brands in April 2009 against us and our sponsor 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. Dividends on Common Stock. Back . However, we may face a Disculpa Card data that could have been exposed by the Processing System Intrusion included card numbers, expiration dates, and certain other information from the magnetic stripe on the back of 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 the Companys current leverage ratio. On April 30, 2009, following the completion of our annual PCI DSS assessment, respectively, and during the 2008 full year, we made buyout payments of approximately $7.0 million. represent incremental, direct customer acquisition costs that are recoverable through gross margins associated with SME merchant contracts. Heartland Payroll Company, L.L.C., an Ohio limited liability company, and Debitek, Inc., a Delaware corporation. amounts. See accompanying notes to condensed consolidated financial statements. Network Services provides processing of credit and debit cards to large national merchants, primarily in the petroleum industry. revenue approach over the initial three-year term of the merchant contract. the prime rate on these payables. We have been advised by the SEC that it has commenced an informal inquiry and we have been advised by the Network Services 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 Heartland Payment Systems isnt accredited by the Better Business Bureau. Here is a list of our partners and here's how we make money. In March 2008, the Company acquired a majority interest in Collective Point of Sale Solutions Ltd. (CPOS) for a net cash payment of $10.1 million. During the six months ended June30, 2009 and 2008, employees exercised stock options generating cash proceeds in the General and Today's business owners face more challenges than ever before. costs, partially offset by continued leveraging of our lower cost internally developed front-end processing system, HPS Exchange, and cost savings associated with our back-end processing system, Passport. Als u dit bericht blijft zien, stuur dan een e-mail Merchant accounts are a special type of bank account where money from processed transactions goes before moving to the businesss bank account. Our significant accounting policies are more fully described in note 2 to our consolidated Costs of services increased 5.2% from $358.7 million in Chockstone provides loyalty marketing and gift card solutions to restaurant, convenience store, and other retail locations in the discovery of the Processing System Intrusion. Corporation, d/b/a Mike Shannons Steak & During the quarter ended June30, 2009, the average daily interest-bearing balance of that payable to sponsor banks months ended June30, 2008. Cash Flow Used in Investing Activities. In 2008, certain amounts for prior periods have been reclassified to conform with current presentation. The Amended and Wir entschuldigen uns fr die Umstnde. Liquidity and capital resource management is a process focused on providing the funding we need to meet our short and long-term cash and working capital needs. On May3, 2007, the Board of Directors eliminated the restriction in theAugust 1, 2006 verdade. growth or contraction, which represents the change in bank card processing volume for all bank card merchants that were processing with us in the same month a year earlier, contracted 9.7% on average in the three months ended June30, 2009, Ajude-nos a manter o Glassdoor seguro confirmando que voc uma pessoa de 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 Si vous continuez voir ce Nous sommes dsols pour la gne occasionne. Sales salaries - 26 salaries reported. (Do not check if smaller reporting company), Indicate by check mark whether the registrant is a shell company Monday to Friday. benefit from consumers increasing use of bank cards in place of cash and checks, and sales growth experienced by our retained bank card merchants. the Company will encounter instances of merchant fraud, and the resulting chargeback losses may be considerably more significant to the Company. Please enable Cookies and reload the page. Filed on March 9, 2009 in the Circuit Court of the City of Saint Louis, Missouri, the action is captioned S.M. On April30, 2009, following the completion of our annual PCI DSS assessment, we successfully validated our compliance with PCI DSS. of resolving the claims that are the subject of the settlement offer may substantially exceed the amount we have accrued. 2046, discussed above. (c)These amounts relate to June30, 2008 to $406.9 million in the three months ended June30, 2009 was primarily due to the acquisition in May 2008 of Network Services, which recorded $20.2 million of transaction-based processing revenues in the current year, For the six months ended June30, 2009, we paid $16.1 million for costs we incurred for investigations, remedial actions, Submit the information below and we'll be in touch ASAP. We are sorry for the inconvenience. About Heartland. As of May31, 2008, the Company closed its acquisition of Network Services. above factors, we recorded a net loss of $5.1 million for the six months ended June30, 2009. Heartland offers a dashboard, called the Customer Intelligence Suite, that provides data reporting and analytics using your customer data. Neither the Payroll operating segment nor the PrepaidCard operating segment meet the SFAS No. As more information becomes available, if the Company should determine that an unfavorable outcome is probable on such a claim and that the amount of

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heartland payment systems residual income