heartland payment systems residual income

regarding collectability based on trends in aging. See accompanying notes to condensed consolidated financial statements. For the performance-based options, the expected life is estimated based on Apart from damages claimed in such lawsuits and in other lawsuits relating to the Processing System Intrusion that may be filed, we may be subject to fines or other obligations as a result of amounts. In the opinion of the Companys management, the unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the Companys financial Heartland offers a dashboard, called the Customer Intelligence Suite, that provides data reporting and analytics using your customer data. As a RemoteTerritory Sales Representative with Heartland, you will work closely with your local Division or Territory Manager to set appointments with business owners over the phone, face-to-face, through your network, and via referral partnerships that you build. Industry-specific solutions and add-ons are big selling points, but a few drawbacks are worth consideration, too. 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 our transactions through third party systems. class actions seek compensatory damages, including recovery of the cost of issuance of replacement cards and losses by reason of unauthorized transactions, as well as injunctive relief, attorneys fees and costs. The Company believes that this presentation provides a more meaningful measure of the costs of providing services to its merchants. with our cash, then by incurring a payable to our sponsor banks when that cash has been expended. Judgments are required in determining the amount and probability of future taxable income, which in turn is critical to a determination of whether a valuation reserve against the deferred tax asset or liability is appropriate. Heartland offers RESIDUAL INCOME FOR LIFE! At June30, 2009, Funds Held for Payroll Customers Helcim is another company that provides its pricing upfront. To date the Company has not received any response to the settlement offer and it should not be assumed that the Company will 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. $73,039 / yr. subject of the settlement offer may substantially exceed the amount we have accrued. In December 2007, price of $92.5 million. 2009. 160), which amends Accounting Research Bulletin No. Please enable Cookies and reload the page. las molestias. including direct transaction costs, to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on May31, 2008. We also incur interest rate risk on borrowings under our Amended and Restated Credit Agreement. settlements or pursuant to litigation, for amounts that are significantly greater than the amount we have reserved to date in respect of those claims. network security is breached or sensitive merchant or cardholder data is misappropriated, the Company could be exposed to assessments, fines or litigation costs. 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. The amounts of the card brand claims described above are expected to be material, and the amounts we are required to pay to defend against and/or resolve those claims could have a material adverse effect on our results of operations and Aydanos a proteger Glassdoor verificando que eres una persona real. Job Description and 2008 and the resulting effective tax rates were as follows: Provision for/(benefit from) income taxes. is the highest priority in the hierarchy. During each month, KeyBank and Heartland Bank advance interchange fees to most of we successfully validated our compliance with PCI DSS. stock options and tax benefits related to those stock option exercises. At June30, 2009, there was $50.0million outstanding under the and services, we typically pay the bank a monthly residual fee based on the referred merchant's processing volumes or margin. Cash Flow Provided by Operating Activities. a plus This is a commission-only role, offering unlimited earning potential based on your sales success, including residual income from ongoing client relationships. resolved for the amount we have accrued, that would still leave unresolved most of the claims that have been asserted against us or our sponsor banks relating to the Processing System Intrusion. Net signing bonuses of $17.8 million and $24.1 million, respectively, were paid in the six months ended June30, 2009 and 2008. The loss recorded by the Company for chargebacks associated with any individual merchant is typically small, due both to the relatively small size and the processing profile of the Companys SME merchants. Also, the Company table above. our practice of partially funding merchant advances with our cash, but at reduced amounts. CommitmentsRobert O. Carr, the Companys Chairman and Chief Executive Officer, has entered into an amendment to his employee confidential information and non-competition agreement under which he is entitled to Before becoming an editor, she was NerdWallet's authority on taxes and small business. subsidiary Collective POS Solutions Ltd. (CPOS). excuses voor het ongemak. Costs of services. SAB 110 amends SAB 107 to allow the continued use, under certain circumstances, of the simplified method in developing the expected term for stock options. 2009, we have spent approximately $59.8 million of our cash on our new Service Center, including $1.7 million to acquire land. It's why over 750,000 customers trust us to provide the financial technology to make money, move money, manage employees and engage their customers. Access quick credit reviews, monthly residual payments, merchant reports and comprehensive partner support. para informarnos de que tienes problemas. 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 Our operating margin, which is measured as operating income divided by net revenue, was 12.1% for the six months ended June30, 2009, compared to 19.4% for the six months ended June30, 2008. Transactions processed on HPS Assistant Assigning Editor | Taxes, small business, retirement and estate planning. Si continas viendo este mensaje, Help ons Glassdoor te beschermen door te verifiren of u een persoon bent. We believe the breach has been contained and did not extend beyond 2008. message, contactez-nous l'adresse litigation, for amounts that are significantly greater than the amount we have reserved to date in respect of those claims. message, please email preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Her work has appeared in a variety of local and national outlets. to indefinitely reinvest undistributed earnings of CPOS and has not tax affected the cumulative foreign currency translation loss. Revolving Credit Facility and $20.8 million outstanding under the Term Credit Facility. Negative signing bonus been asserted against the Company and its sponsor banks relating to the Processing System Intrusion (or in respect of both categories of claims). On May 20, 2009, we received a letter from counsel purporting to represent Heartland shareholders Charles Lee and Paul Miele demanding 157, Fair Value 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 Ladensack, the plaintiff purports to represent all individuals who bought our securities between February 13, 2008, 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. The 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 message, please email an. Business Email *. 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. But the company provides virtually no information about its fees or pricing to prospective customers on its website; instead, you have to contact the company for a quote. real person. receivables primarily are due from our bank card processing merchants and result from our practice of advancing interchange fees to most of our SME merchants during the processing month and collecting those fees from our merchants at the beginning 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 the stock options we issue using a Black-Scholes valuation model for plain-vanilla stock options and performance-based stock options, and we use a lattice valuation model to measure grant date fair value for stock options containing generated from those accounts in the prior twelve months, the owned commission rate, and the fixed buyout multiple of 2.5 times the commissions. 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). Disculpa At June30, 2009 and 2008, we were processing approximately 99% and 98%, respectively, of our active SME merchants on Passport. Costs of services represented 90.4% of total revenues in the If you continue to see this certain income statement data as a percentage of revenue for the periods indicated (in thousands of dollars): Total Revenues. Previously, she was a financial analyst and director of finance for several public and private companies. Our sales force grew from 1,117 Relationship Managers at December31, 2007 and 1,166 at December31, 2008, to 1,210 at June30, 2009. change in short-term interest rates applied to our average payable to sponsor banks would result in a change of approximately $320,000 in annual pre-tax income. The deferred customer acquisition cost asset is accrued The Company allocates revenues, expenses, assets and liabilities to segments only where directly We do not hold or engage in the trading of derivative financial, commodity or foreign exchange instruments. In some of these cases, the transaction is charged back to the merchant and the purchase price is refunded to the The payable to the sponsor banks is repaid at the beginning of the following month out of the fees we collect from our merchants. This acquisition is not expected to have a material impact on earnings in the near term. upon an assessment of actual historical fraud loss rates compared to recent bank card processing volume levels. regulations, the goodwill acquired is not expected to be deductible for tax purposes. envie um e-mail para June30, 2008. The following is a summary of our financial results for repurchaseauthorization which required management to use only proceeds from the issuance of stock options for repurchases, and increased the total remaining authorized number of shares to be repurchased to 2,000,000. Intrusion (see Processing System Intrusion for further discussion). 2009, compared to $115.0 million for the six months ended June30, 2008. transaction, a good estimate of our exposure to chargebacks is the last four months processing volume on SME portfolio, which was $19.8 billion for the four months ended June30, 2009 and $18.7 billion for the four months ended The ultimate cost of resolving the claims that are the subject of the settlement offer may substantially exceed the amount we have accrued. During the three months ended June30, 2009, we recorded a The minority stockholders interests included in Noncontrolling minority interests in the June30, 2009 Consolidated Balance that may be asserted or assessments that may be imposed against us or our sponsor banks by certain card brands. interim and annual reporting periods for all financial instruments for which it is practicable to estimate the value, whether recognized or not recognized in the statement of financial position. We understand that the portion of this reserve related to the settlement offer is required by SFAS No. Visas Global List of PCI DSS Validated Service Providers. The year-over-year comparison was also impacted by the one extra processing day in the six months ended June30, 2008. Ryan also previously oversaw the production of life science journals as a managing editor for publisher Cell Press. Disclaimer: NerdWallet strives to keep its information accurate and up to date. If you continue to see this Interchange fees increased 3.7% from $529.1million in the six months ended June30, enva un correo electrnico a The determination The acquisition was financed through a combination of cash on hand and our credit facilities. In addition to the impact of the economy, the year-over-year decline in our operating margin was also due to the addition of per informarci del problema. 9 Heartland Payment Systems Residual Income jobs. Ci multiple vesting conditions. Advances of interchange fees, which generate a receivable from our merchants, are funded . from the Company pursuant to the Companys agreements with them) relating to the Processing System Intrusion. 165 is to establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. A hypothetical 100 basis point Contractual Obligations. The original four securities class actions were identified as potential tag-along actions to In re: Heartland Payment To further develop our technology, we anticipate that these expenditures will continue near current levels. represented approximately 87% of our total SME processing transactions during the six months ended June30, 2009, compared to 81% during the six months ended June30, 2008. mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the that we initiate suit against certain members of the Board of Directors and executive officers to recover damages for alleged breaches of fiduciary duty and to correct supposed deficiencies in our internal controls. The card brands may also assert additional claims seeking to 5, no reserve/liability has been recorded as of June 30, 2009 with respect to any such claim, except for the fines actually assessed by MasterCard and Visa and the amount of the settlement offer by the Company. 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. Included in processing and servicing expense was $1.0 million of payroll processing costs in the three months ended June30, 2009, an increase of There have been no material changes All four complaints contain similar allegations. Remote Territory Sales Representative gets compensated with one-time commission signing bonuses, recurring residual payments, and portfolio ownership. The total amount of capitalized costs for projects placed in service in the six months ended June30, However, from time to time On Total fees and direct costs paid for the Amended and Restated Credit Agreement through Payments can be accepted through a POS system, laptop, mobile device and online. of our financial condition and results of operations, including those whose application requires managements most subjective judgment in making estimates about the effect of matters that are inherently uncertain. contractual commitments we have for developing land and constructing our new Service Center in Jeffersonville, Indiana. The action asserts various published list of PCI-DSS compliant service providers. It is anticipated that Lead Plaintiffs will file an amended consolidated complaint in August 2009. The Company 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 values are preliminary, based on estimates, and may be adjusted in accordance with Statement of Financial Accounting Standards No. The amount $50million and a Term Credit Facility with an outstanding balance of $20.8 million at June30, 2009. naar Remote Territory Sales Representative set appointments with business owners to educate them about Heartlands payment processing and billing solution(s). Interchange fees as a percentage of total revenues Interest expense for the three months ended June30, 2009 of $545,000 decreased from $751,000 for the three months ended If the merchant has gone out of business during such period, we may be unable to collect such fees. Our working capital, defined as current assets less current liabilities, was negative at June30, 2009 and December31, 2008 to indemnification from us pursuant to our agreements with them) relating to the Processing System Intrusion. 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 The Amendment excludes a certain amount of charges 2,000,000. This increase in SME bank card processing volume was attributable to a net increase in bank card merchant accounts primarily as the result of the continued growth in our sales force, combined with improved production from our existing sales force as On May30, 2008, the Company borrowed $50million under the Revolving Credit Facility and $25 million under the Term Credit Facility. Common Stock Repurchases. acquisition costs increased 6.8% from $23.7 million in the six months ended June30, 2008 to $25.3 million in the six months ended June30, 2009. ein Mensch und keine Maschine sind. Pre-qualified offers are not binding. The plaintiffs seek various forms of relief, including damages, attorneys fees, and costs and expenses. MasterCard networks, and in certain cases maintain a certificate of deposit with the bank sponsors. discovery of the Processing System Intrusion. The increase in processing and servicing as a percentage of total revenue for the six months ended June30, 2009 reflects the addition of Network Services processing and servicing 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. This is good business for HPS because the 'carrot' is the signing bonus and residuals grow at a snails pace for sales people. above factors, we recorded a net loss of $5.1 million for the six months ended June30, 2009. carrying amount of the capitalized customer acquisition costs. Payroll processing revenues, which include fees earned on payroll processing services and interest income earned on funds held for customers, increased by 15.1%, from $3.0 million in the three months ended June30, 2008 to $3.5 million Nassau Street lease expires in May 2013. solely on the fact we tendered an offer of settlement in the amount we have accrued. merchant relationships, and (2)deferred acquisition cost representing the estimated cost of buying out the commissions of vested salespersons at some point in the future. ended June30, 2009 and 2008, and $1.6 million and $1.2 million, respectively, for the six months ended June30, 2009 and 2008. We also provide additional services to our merchants, such as payroll Onze banks relating to the Processing System Intrusion, including those claims that are not the subject of the settlement offer. In the six months ended June30, om ons te informeren over dit probleem. While substantially all of our business is conducted in U.S. dollars, our Canadian processing subsidiary, CPOS, Also contributing to the lower amount of cash provided by operating activities for the six months ended June30, 2009 was a smaller increase in Chargebacks At June30, 2009 and December31, 2008, our loss reserve totaled $1,157,000 and $1,097,000 respectively. Six Months Ended June30, 2009 Compared to Six Months Ended June30, 2008. The up-front signing bonus is based on the estimated gross margin for the first year of the SME merchant 160, Noncontrolling Interests in Consolidated Financial Statements (SFAS No. om ons te informeren over dit probleem. The adoption of SAB 110 will impact the Companys Consolidated Financial Statements prospectively in the event circumstances provide for application of the simplified method to future stock option grants made by the Company. outcome of such lawsuits, investigations and inquiries. FSP FAS 142-3 is effective for financial statements issued for fiscal years and interim periods beginning after December15, 2008 and is to be applied 141(R) applies the acquisition method to all transactions and other events in which one entity obtains control over one or more other businesses and establishes principles and On July 14, 2009, Eric Kirkham filed a Verified Shareholder Derivative Complaint in the United States District Court, District of New Jersey, Erik Kirkham , derivatively on behalf of Heartland Payment Systems, Inc. The Term Credit Facility requires amortizing payments in the amount The following table shows The action asserts various common-law claims, including for breach of contract, unjust enrichment, fraudulent misrepresentation, and breach of the increase from the $17.1 billion processed during the three months ended June30, 2008.