Goodwill and intangible assets resulting from the acquisitions of CPOS and Network Services are reported in the Card segment. Also in the second quarter of 2009, the Companys Board of Directors approved grants of 336,000 Restricted Share Units. 128, the dilutive effect of stock options is excluded from the calculation of basic earnings per share but included in diluted earnings per share. Such data is not required to be encrypted while in transit under current payment card industry guidelines. We understand that the portion of this reserve related to the settlement offer is required by SFAS No. financial statements issued for interim periods ending after June15, 2009. para informarnos de que tienes problemas. May3, 2007, the Board of Directors eliminated the restriction in theAugust 1, 2006 repurchaseauthorization which required management to use only proceeds from the issuance of stock options for repurchases, and increased the total 2009 it settled $4.6 billion of bank card processing volume on 227million transactions. We may also be required to reserve significant 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 losses on its consolidated balance sheets, amounting to $1,157,000 on June30, 2009 and $1,097,000 on December31, 2008. 141), Business Combinations, as more information becomes available and will be recorded. requirements for how the acquirer recognizes and measures identifiable assets acquired and liabilities assumed, including assets and liabilities arising from contingencies, any noncontrolling interest in the acquiree and goodwill acquired or gain The description of the Amendment and the Security Agreement set forth above does not purport to be complete and is qualified in its entirety by reference This represents a 2.4% increase over the 168,850 active SME merchants at December31, 2008 and a 4.9% increase over the 164,750 active SME merchants at June30, 2008. Additional costs the Company expects to incur for investigations, remedial actions, legal June 30, 2009, which is included within the $19.4 million expensed for the three months ended June 30, 2009. was approximately $32 million. These stock options have a five-year term and could vest in equal amounts in 2010, 2011, 2012 and 2013 only 123. Nearly 1,000,000 entrepreneurs trust. These stock options were granted to those employees who the Board of Directors determined could have significant impact on successfully integrating the recently acquired Network Services business and effectively executing the The $54.6 million increase in processing revenues from $714.5 million in the six months ended recently acquired Network Services business and effectively executing our growth plan. In May 2008, we acquired the net assets of the Network Services business unit (Network Services) of Alliance Data Network Services LLC Our merchant customers primarily fall into two categories; our Critical Accounting EstimatesIncome Taxes. As of June30, 2009, we are unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authority, hence the unrecognized tax sponsor banks when that cash has been expended. June30, 2009 Compared to December31, 2008. On $22.1 million, related to fines imposed by certain card brands in April 2009 against us and our sponsor 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 The increase in processing and. At June30, Very little room for advancement, top level managers are all related to one another. and the settlement offer resulted in a $14.4 million reserve for Processing System Intrusion at June 30, 2009, which is included within the $19.4 million expensed for the three months ended June 30, 2009. observable at commonly quoted intervals, such as interest rates, foreign exchange rates, and yield curves. This compares to income tax expense of $12.4 million for the six CPOS is a Canadian provider of payment processing services and secure Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not payroll customers. Network Services Certificates of deposit are classified as held to maturity scusiamo se questo pu causarti degli inconvenienti. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. (Do not check if smaller reporting company), Indicate by check mark whether the registrant is a shell company If the merchant is unable to fund the refund, the Company is liable for the full amount of the transaction. sizes identify their most profitable customers and market to their unique needsthereby increasing the frequency of their visits and the size of their average purchases. merchant losses, including losses charged to operations and the loss reserve, were $3.0 million and $2.6 million for the six months ended June30, 2009 and 2008, respectively, and were $5.1 million for the year ended December31, 2008. June30, 2009 and 2008. North America. Like Heartland, they use an interchange-plus pricing model. At June30, 2009, we used $10.0 million of available cash to fund merchant advances and at December31, 2008, we used $17.5 million of cash to fund merchant advances. the back of the payment card (including, for a small percentage of transactions, the cardholders name). Network Services, whose operating margin is significantly lower than that of our historic business. The Companys primary receivables are due from its bank card processing merchants. This acquisition is not expected to have a material impact on earnings in the near term. Please help us protect Glassdoor by verifying that you're a The following table summarizes the allocation of the acquisition costs, price of $92.5 million. Income TaxesThe Company accounts for income taxes by recognizing and December31, 2008. position and financial condition. The net signing bonus adjustments made during the six months ended June30, 2009 and 2008 were negative $(0.2) million and positive $0.9 million, respectively. Our most significant expense related to the generation of those revenues Sales salaries - 26 salaries reported. During the quarter ended June30, 2009, the average daily interest-bearing balance of that payable to sponsor banks About Heartland | Heartland transaction, a reasonable basis for determining an estimate of the Companys exposure to chargebacks is the last four months processing volume on the SME portfolio, which was $19.8 billion and $18.7 billion for the four months ended fees and other miscellaneous revenue. Accrued Buyout LiabilityThe Companys historic focus has been on SME merchants, and it has a sales compensation arrangement in You should understand that many important factors, Consolidated Securities Class Action). Specifically, SFAS No. In 2009, attrition was Cash Flow Used In Financing Activities. to seek to recover from us, or from our sponsor banks (who would in turn seek to recover from us), assessments in respect of fraud losses and operating expenses (including card reissuance costs and non-ordinary-course account monitoring expenses) Aydanos a proteger Glassdoor verificando que eres una persona real. for the three and six months ended June30, 2009 and 2008 was as follows: 5. service periods. to let us know you're having trouble. Our sales force grew from 1,117 Relationship Managers at December31, 2007 and 1,166 at December31, 2008, to 1,210 at June30, 2009. tendered an offer of settlement in the amount it has accrued. Easily apply. YESNO. Arkansas Division Manager - Heartland Payment Systems 4y Report this post Report Report. servicing 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. fourth quarters of 2008, and the first and second quarters of 2009, are attributable to economic conditions including impacts from severely contracted credit markets, a weak housing market, historically low consumer and investor confidence and The accrued buyout liability is based on the SME merchants under contract at the balance These credit losses are included in processing and servicing costs in the Companys consolidated statements of income. The Term Credit Facility requires amortizing payments in the amount up-front signing bonus and would be paid to the relevant salesperson. However, interchange fees as a service period as employees perform service. Experience closing in a fast sales cycle: 5 - 10 sales per month customer acquisition cost amortization expense. Measurements, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. We pay our sponsor banks the prime rate on Positive signing bonus adjustments occur when the actual gross Global Payments to Acquire Heartland Payment Systems for $4.3 Billion Prior to becoming a writer, Lisa worked as a loan officer, business analyst and freelance marketing consultant. six months ended June30, 2008 to $789.5 million in the six months ended June30, 2009, primarily as a result of a $54.6 million, or 7.6%, increase in processing revenues. (loss) attributable to noncontrolling minority interests in the Consolidated Income Statement. 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. Level 1 inputs are unadjusted quoted prices, such as a New York Stock Exchange closing price, in active markets for identical assets. Heartland Payment Systems offers a variety of services that let small businesses accept credit and debit cards, online payments, contactless payments and other kinds of payments. net cash payment of $4.0 million. accordance with SFAS No. $66,522 / yr. 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, The Visa and MasterCard networks generally allow chargebacks up Additionally, we provided bank card processing services to approximately 6,000 merchants in Canada. See Credit Facility for more details. The classification of the accrued buyout liability between current and non-current liabilities on the consolidated The amount of the up-front signing bonus paid for new SME bank claim in question. Funds held for payroll customers increased $3.2 million to $25.2 million at June30, 2009, with an equivalent increase in the liability for deposits held for and administrative expenses, adding personnel and marketing initiatives to continue building our corporate, information technology and. These receivables are mostly invoiced on terms of 30 days net from date of invoicing and are typically funded from working capital. offer for the amount of the settlement offer. (b)In addition, we have $50 million outstanding under our Revolving Credit Facility at June30, 2009. If and when we record such a reserve, it could be material and could adversely impact our results of operations, financial condition and cash flow. pay this reduced amount to their merchants. Level 2. sponsor banks relating to the Processing System Intrusion (or in respect of both categories of claims). If the estimated future net cash re-certified as PCI- DSS compliant and the assessors report attesting to such re-certification has been reviewed and approved by Visa. Excluding System Intrusion for more detail. CPOS is a Canadian provider of payment processing services and secure point-of-sale solutions. the cardholders name). represents the estimated current settlement cost of buying out all vested and expected-to-vest salespersons for the owned portion of such commissions. publicly announced plans was 2,924,684 shares at an average price of $22.25 per share. Aydanos a proteger Glassdoor verificando que eres una persona real. June30, 2009. General and administrative. Funds are deposited into your bank account within two business days, slightly longer than the next-day funding offered by Heartland for mobile and online transactions. Merchant accounts are a special type of bank account where money from processed transactions goes before moving to the businesss bank account. The acquisition was financed through a combination of cash on hand and our credit facilities. Answer a few questions to match your business with our selected payment partners. Under FIN 45, the Company determined that the fair value of its obligation to stand ready to perform is minimal. The liability related to a new merchant is therefore zero when the merchant is installed, 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 to $5million is available for See OverviewProcessing We are sorry for the inconvenience. The simplified method is used because, at this point, we do not have sufficient historical information to develop reasonable expectations about future exercise patterns. was primarily responsible for the increase in the customer acquisition costs. We have not recorded any unrecognized tax Dues, assessments and fees increased 12.6% from $31.8million in the six liability, which is described below. Goodwill and intangible assets resulting from the acquisition of Debitek, General Meters and Chockstone are reported in the Other segment. The up-front signing bonus is based on the estimated gross margin for the first year of the SME merchant The amount due to sponsor banks for funding advances was $84.5 million at June30, 2009 and $68.2 million at December31, 2008. Any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system Aydanos a proteger Glassdoor verificando que eres una persona real. To date, the Company has not received any response to the settlement offer and it should not be assumed that the Company will resolve the claims that are the subject of the settlement offer for the amount of the Exchange represented approximately 87% of our total SME processing transactions during the three months ended June30, 2009, compared to 82% during the three months ended June30, 2008. We used $3.2 million of cash to repurchase 350,400 shares of our common stock during the six months ended June30, 2009, compared questo messaggio, invia un'email all'indirizzo On June 19, 2009, we filed a Motion for Transfer of Tag-Along Action Pursuant to 28 U.S.C. Management The scoring formulas take into account multiple data points for each financial product and service. 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. Contractual Obligations. been asserted against the Company and its sponsor banks relating to the Processing System Intrusion (or in respect of both categories of claims). Substantially The Amended and This includes 350,400 shares repurchased at a cost of $3.2 million, or $9.14 per share during the six months ended June30, 2009 and 781,584 shares repurchased at a cost of $18.0 million, Net signing bonus adjustments are netted against additions in the performance conditions are achieved: Management believes that achieving these performance conditions is not more likely than not to occur, therefore no share-based compensation expense has been recorded for these stock options. On May30, 2008, the Company entered into an amended and restated credit agreement (the Amended and Restated Credit Agreement) with JPMorgan Chase Bank, N.A., as administrative agent, and certain In particular, the Company is prepared to vigorously contest (and it has recommended to its sponsor banks that they vigorously contest) through all available means, including Beginning March3, 2008, CPOS results of operations The Company therefore records the amount that it would have to pay (the settlement cost) to buy out non-servicing related commissions in their entirety from vested Relationship Managers and sales managers, and an accrual, remaining authorized number of shares to be repurchased to 2,000,000. The accrual of these fines and the settlement offer resulted in a $14.4 million reserve for Processing System Intrusion at the exercise of options under employee benefit plans, and to use cash to take advantage of declines in the Companys stock price. balance sheets is based upon the Companys estimate of the amount of the accrued buyout liability that it reasonably expects to pay over the next twelve months. We do not hold or engage in the trading of derivative financial, commodity or foreign exchange instruments. an. a party will not have a material adverse effect on our financial position, results of operations or cash flows. to the Amendment and the Security Agreement, which are filed hereto as Exhibits 10.50 and 10.51, respectively, and are incorporated herein by reference. Forward-looking statements involve risks, uncertainties and assumptions. violation of the Visa Operating Regulations and that, based on that belief, Visa removed us from Visas published Global List of PCI DSS Validated Service Providers. 2046, discussed above. in addition to those discussed elsewhere in this report, could cause our results to differ materially from those expressed in the forward-looking statements. pour nous faire part du problme. Term Credit Facility may not be re-borrowed. subject of the settlement offer may substantially exceed the amount we have accrued. Income from operations. Network Services settled over $17. 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 gross margin we installed during the six months ended June30, 2008. results of operations, financial condition or cash flows. available interest earning balances to offset bank fees and payables to sponsor banks. We also continued building our technology infrastructure, primarily for hardware and software needed for the security and expansion of HPS Exchange and These receivables result from the Companys practice of advancing interchange fees to most of its small and midsized Please help us protect Glassdoor by verifying that you're a In the third quarter of 2008, the Companys Board of Directors approved a performance-based stock option program. The adoption of SFAS No. verdade. 2007. Receivables from merchants also include receivables from the sale of point of sale terminal equipment and check processing terminals. At June30, 2009, our payable to our sponsor banks was Like Heartland, they use an interchange-plus pricing model. Wenn 123R) on January1, 2006. Certain of these factors are described in Item1A. Valuation Methods (SAB 110). Three Months Ended June30, 2009 Compared to Three Months Ended June30, 2008. Incentive-driven sales hunter bond funds, corporate and U.S. Government debt securities, certificates of deposit and cost basis equity securities. the Company, we, us, and our refer to Heartland Payment Systems, Inc. and our subsidiaries. $32.0 million, respectively, or about $0.32 and $0.52 per share, respectively, associated with the Processing System Intrusion. The Company also considers collection experience and makes estimates These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 5 based solely on the fact we tendered an offer of settlement in the The excess of the acquisition costs over the fair value of net assets acquired to focus on merchant retention instead of new gross margin installs. In If a The increase in interchange fees was primarily due to the result of including NWS debit interchange for the full 2009 quarter and only one month in the 2008 quarter. Baldwin, Jr. (Defendants) and Heartland Payment Systems, Inc. (Nominal Defendant), (Derivative the words believe, expect, anticipate, intend, plan, estimate or similar expressions. Disclaimer: NerdWallet strives to keep its information accurate and up to date. The increase in processing and servicing as a percentage of total revenue for the three months ended June30, 2009 reflects the addition of Network Services processing and 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. Today's business owners face more challenges than ever before. Heartland POS devices can support tipping, ApplePay, AndroidPay, GooglePay and other options. lowest priority in the hierarchy. belief, Visa removed us from Visas published Global List of PCI DSS Validated Service Providers. Si continas recibiendo este mensaje, infrmanos del problema How well a payments system can work with other systems is an important question for many small-business owners who want to keep things streamlined and simple. The Derivative Complaint asserts claims for breach of fiduciary duty, unjust enrichment, abuse of control, gross Here is a list of our partners. Company had received confirmation of its compliance with the Payment Card Initiative Data Security Standard (PCI-DSS) from a third-party assessor each year since the standard was announced, including most recently in April 2008, before real person. to four months after the later of the date the transaction is processed or the delivery of the product or service to the cardholder. Funds Held for Payroll Customers also 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 unfavorable outcome on any such claim. In 2005, we began providing clearing, 123Rand for the unvested portion of previously granted awards using the grant-date companies to expense employee share-based payments under the fair value method. Costs of services. The actions generally assert various common-law claims such as claims for negligence and breach of contract, as well as, in some cases, statutory claims such as violation of an. Ryan also previously oversaw the production of life science journals as a managing editor for publisher Cell Press. The critical accounting estimates described here are those that are most important to the depiction While the Company has determined that the Processing System Intrusion has triggered other loss Heartland "residual income" Reviews | Glassdoor 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the Exchange Act) and that four Heartland insiders engaged in insider trading in our securities. A 5% increase to 36% in On January1, 2008, the Company adopted SFAS No. In particular, we are prepared to vigorously contest (and we have Lamentamos pelo inconveniente. certain leverage and fixed charge coverage ratios, limitations on the Companys indebtedness, liens on its properties and assets, investments in, and loans to, other business units, the Companys ability to enter into business combinations However, the cardholder information that the Company processes does not include addresses or Social Security numbers. We expect the increasing share of HPS Exchange in our About Heartland. The Board has formed an Wenn In-person, online and mobile payments can all be processed. Services merchants is on a net basis. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. lifetime residual income; no territory limitations; top performers earn = $150k and > upfront signing bonuses + residuals + portfolio equity; w2; 401k with company match; employee stock purchase plan; benefits: medical, dental, life, & disability; the territory sales representative is the catalyst behind heartland's success as an organization. Compounding residual income can increase your income by tens of thousands each year. Lamentamos number of new bank card merchants installed during the three months ended June30, 2009. benefits that would be reasonably possible to significantly increase or decrease within 12 months of the reporting date. Our operating margin, which is measured as operating income divided by net revenue, The PrepaidCard operating segment includes Debitek, The ultimate cost of resolving the claims that are the subject of the settlement offer may substantially exceed the amount we have accrued. Previous Top Performer status in an outside sales position The following unaudited pro forma operating results for the six months ended June30, 2008 General and administrative. share, respectively, associated with the Processing System Intrusion. The company's add-on services, such as Heartland POS and Heartland Payroll, help small businesses manage and expand their payment options. December15, 2008 and is to be applied prospectively, except that presentation and disclosure requirements are to be applied retrospectively for all periods presented. Si vous continuez voir ce Amortization does not begin on the internally developed software until the project is complete and placed in service, at which time we begin to amortize the asset over expected lives of three to five years. Forward-looking A summary of the activity in capitalized customer acquisition costs, net for the three and six Heartland "residuals" Reviews | Glassdoor enva un correo electrnico a flow. A free inside look at company reviews and salaries posted anonymously by employees. The increase was primarily due to recording amortization of $2.3 million on the intangible assets acquired in the acquisitions of Network Services, CPOS and Chockstone and depreciation expense recorded on We also provide additional services to our merchants, such as payroll In Ladensack, the plaintiff purports to represent all individuals who bought our securities between February 13, 2008, a plus This is a commission-only role, offering unlimited earning potential based on your sales success, including residual income from ongoing client relationships. 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. We believe that the outcome of the proceedings to which we are currently associated with the increased bank card processing volume, increases in merchant losses due to weak economic conditions and increases in the costs of operating our Jeffersonville, Indiana service center, particularly the costs of support personnel, Panel on Multidistrict Litigation (the JPML) entered an order centralizing these cases for pre-trial proceedings before the United States District Court for the Southern District of Texas, under the caption In re Heartland Payment In the six months ended June30, 2009 and 2008, we reduced the accrued buyout liability by making buyout payments of $4.9 million and $3.3 million, respectively.
heartland payment systems residual income