Also contributing to the lower amount of cash provided by operating activities for the six months ended June30, 2009 was a smaller increase in At We reported net cash For the quarterly period ended June30, 2009, For the transition period from to, (Exact name of registrant as specified in its Net revenue, which we define as total revenues less interchange fees and dues, assessments and While the Company has determined that the Processing System Intrusion has triggered other loss contingencies, to date an unfavorable outcome is not Processing System IntrusionOn January20, 2009, the Company publicly announced the discovery of a criminal breach of its payment presented separately on the face of the consolidated financial statements. recorded on information technology equipment to support the network and the continuing development of HPS Exchange and Passport. On June 12, 2009, the Clerk of the JPML issued a Conditional Transfer Order for tag-along actions to be similarly transferred to the Southern District During the year ended December31, severance pay equal to his base salary and medical benefits for 24 months (or 12 months if upon a change in control of the Company) and a pro-rated bonus in the event he is terminated by the Company other than for cause. These credit losses are included in processing and servicing expense in our consolidated statements of income. At June30, 2009, the Company used $10.0 million of its available cash to fund merchant advances and at December31, 2008, the Company used $17.5 Motion for Transfer of Tag-Along Action Pursuant to 28 U.S.C. If the merchant is unable to fund the refund, we must do so. 2009 and the 2008 full year, we incurred. that are the subject of the settlement offer were resolved for the amount the Company has accrued, that would still leave unresolved most of the claims that have been asserted against the Company or its sponsor banks relating to the Processing Heartland employs nearly 3,000 dedicated employees throughout the country and provides . Ability to pass a background check The estimated total pay for a Sales at Heartland is $152,986 per year. This influences which products we write about and where and how the product appears on a page. Cash Flow Used In Financing Activities. December31, 2008; 37,461,310 and 37,675,543 shares outstanding at June30, 2009 and December31, 2008. Heartland Payment Systems uses an interchange-plus pricing model, which means businesses pay the card interchange fees Heartland incurs, plus a markup. THE COMPENSATION ALLOWS SALES PROFESSIONALS TO HIGHLY LEVERAGE THE PLAN FOR THE OPPORTUNITY TO CREATE PASSIVE INCOME WHILE WORKING FLEXIBLE HOURS. You should understand that many important factors, On May30, 2008, the Company borrowed $50million under the Revolving Credit Facility and $25 million under the Term Credit Facility. to build our merchant portfolio, our servicing technology platforms, and our Jeffersonville, Indiana service center with the expectation that these investments will generate cash flows sufficient to cover our working capital needs and other At June30, 2009, we attorneys fees, and costs and expenses. CPOS revenues and expenses are translated at the average exchange rates prevailing during the period. June30, 2009 and December31, 2008: Vested Relationship Managers and sales managers, Unvested Relationship Managers and sales managers. subject of the settlement offer may substantially exceed the amount we have accrued. Si continas recibiendo este mensaje, infrmanos del problema The Processing System Intrusion involved malicious software that appears to have been 727 Pension Fund and Genesee County Employees Retirement System were appointed Co-Lead Plaintiffs for the purported class pursuant to 15 U.S.C. The adoption of SFAS No. However, it is possible we will end up resolving the claims that are not the subject of the settlement offer, either through settlements or pursuant to All principal and interest not previously paid on the Term Credit Facility will mature and be due and payable on December31, 2011. para nos informar sobre o problema. message, contactez-nous l'adresse On aggregate of $0.5 million and $1.8 million, respectively. The plaintiff seeks various forms of relief, including damages, 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 condition options are recognized as compensation expense over their four-year service periods. This information may be different than what you see when you visit a financial institution, service provider or specific products site. The accompanying condensed consolidated Please enable Cookies and reload the page. SFAS No. financial statements are unaudited. The JPML is expected to hear that motion in its next hearing session in September 2009. Payroll processing fees increased by 18.5% from $2.9 million in the three months ended June30, 2008 to $3.5 million in the three months ended June30, 2009, while interest income The pro forma results of operations are based on historical results of operations, adjusted for the impacts of purchase price allocations and financing costs, and are not The $54.6 million increase in processing revenues from $714.5 million in the six months ended The increase in processing and. Generally, when we have cash available for investment we fund these advances to our merchants first options, the employee must provide continuous service over four years and a market price condition must be satisfied within those four years. was primarily responsible for the increase in the customer acquisition costs. Si continas viendo este mensaje, All financial products, shopping products and services are presented without warranty. processing volume was primarily attributable to volume attrition and slower new merchant. 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. Se continui a visualizzare 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 Intrusion at June 30, 2009, which is included within the $19.4 million expensed for the three months ended June 30, 2009. stock repurchase will vary based on market conditions, securities law limitations and other factors. Payroll, payments and POS software for your budget. By signing up, I agree to the Heartland Payment Systems . Job Description Our opinions are our own. Wenn ein Mensch und keine Maschine sind. The system can also be customized based on your business type. The reduction in net signing bonuses paid during the six months ended June30, 2009 reflects a These Restricted Share Units are nonvested share awards which will vest over a four-year service period. million, respectively, for the three months ended June30, 2009 and 2008, and $(0.2) million and $0.9 million, respectively, for the six months ended June30, 2009 and 2008. Proceedings. The Company understands that the portion of this reserve related to the settlement offer is required by SFAS No. 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. action, if any, should be taken in response to the demand. 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. In Davis, Ivy and Morr, the plaintiffs initially purported to represent all individuals who bought our securities between August 5, 2008, and February 23, 2009 (the Class Period). The Company estimates its allowance based on experience with its merchants, customers, and sales force and its judgment as to the likelihood of their ultimate payment. SAB110 was effective January1, 2008. Over the six months ended June 30, 2009, the majority of these charges, or $22.1 million, related to fines imposed by naar between the financial statements and the tax basis of assets and liabilities using enacted tax rates. Sign In. The following is a summary of our financial results for June 30, 2009, which is included within the $19.4 million expensed for the three months ended June 30, 2009. Systems, Inc. Business Email *. Network Services and the year-over-year increase in SME processing revenues. fair value estimated in accordance with the provisions of SFASNo. processes (whether settled, or only authorized), not its processing volume, as the larger merchants which comprise Network Services customer base pay on a per transaction basis for processing services. For the six months ended June30, 2009, our SME bank card processing volume increased 0.9% to $28.8 billion, compared to $28.5 billion for the six months ended June30, 2008. We may also be required to reserve significant 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 fees. last business day of each fiscal quarter commencing March31, 2009. investments held to maturity and investments available-for-sale by major security type and class of security were as follows at June30, 2009 and December31, 2008: Investments held to maturity Certificates of deposit (a), Investments held to maturity Certificates of deposit. expenses which are related to the Processing System Intrusion, but that cannot be separated from ongoing expenses. transactions. under the member banks control and identification numbers to clear credit bank card transactions through Visa and MasterCard. Although we intend to defend the lawsuits, investigations and inquiries described above vigorously, we cannot predict the and December31, 2008. borrowings were applied to finance and pay expenses related to the acquisition of certain assets from ADS Alliance Data Systems, Inc., as described in more detail in Note 3. Heartland offers RESIDUAL INCOME FOR LIFE! The decrease in interest expense for the three months ended June30, 2009 was due to lower interest rates incurred on our borrowings under our Credit Facility and payables to our sponsor banks. Historically, the Company has not experienced significant charge offs for its merchant receivables. At June30, 2009, we had gross tax effected unrecognized tax benefits of approximately $1.7 million. The increase in the accrued buyout liability for the six months ended June30, 2009 was lower than the prior year six month period due to a contraction in same store sales and higher merchant attrition, including 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 . contract. We have used our funding sources HPC provides payroll and related tax filing services throughout the United States. A Remote Territory Sales Representative reports to a Division Manager and receives coaching from a Territory Manager. Additionally, we capitalized salaries and fringe benefits and other expenses incurred by employees that worked on At June30, 2009 and December31, 2008, our loss reserve totaled $1,157,000 and $1,097,000 respectively. The addition of revenues from our May 2008 acquisition of Network Services partially offset these declines. back to the merchant, which means the purchase price is refunded to the customer by the card-issuing bank and charged to the merchant. Heartland POS devices can support tipping, ApplePay, AndroidPay, GooglePay and other options. para nos informar sobre o problema. Level 1 inputs. In our opinion, the unaudited condensed consolidated financial adding personnel and marketing initiatives to continue building our corporate, information technology and marketing infrastructure, which are necessary to support our growth and our product development initiatives, and legal, consulting and other The plaintiffs seek various forms of relief, including damages, attorneys fees, and costs and expenses. Visa and MasterCard rules restrict the Company from performing funds The estimated amortization expense related to intangible assets for the next five years is as 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. As such, the Company was As of November14, 2008, the Company acquired the assets of Chockstone, Inc. for a cash payment of $4.1 million. The Company and CPOS are now able to service merchants that have locations in both the United States and Canada. Heartland Bank is not affiliated with Heartland Payment Systems. Heartland insights Based on 270 survey responses What people like Feeling of personal appreciation Supportive environment Time and location flexibility Areas for improvement Overall satisfaction Friendly environment Payroll Specialist (Former Employee) - Cleveland, OH - April 26, 2023 legal fees, crisis management services and assessments imposed on our sponsor banks (who have asserted rights to indemnification from us pursuant to our agreements with them) by card brands. Pre-qualified offers are not binding. liabilities related to our CPOS subsidiary. 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. 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 Amended and Restated Credit Agreement contains covenants, which later of the date the transaction is processed or the delivery of the product or service to the cardholder. was 14.7% for the three months ended June30, 2009, compared to 20.4% for the three months ended June30, 2008. 141), Business Combinations, as more information becomes available and real person. primarily in the petroleum industry. consolidated income statements. (Chockstone) for a net cash payment of $4.0 million. ein Mensch und keine Maschine sind. in response to each of these inquiries. Given our view of the duration of the cash flows associated with a pool of merchant contracts, we believe that the benefits of such buyouts significantly exceed the cost, which typically represents 2 to 2 1/2 years of commissions. The Revolving Credit Facility may be used to finance future construction projects and acquisitions in accordance with the terms of the Credit Agreement These restrictions place the settlement assets and obligations under the control of the member bank. On own Common Stock. revenue approach over the initial three-year term of the merchant contract. 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. Cash used in financing activities in each six-month period included cash for common stock repurchases. The year-over-year comparison was also impacted by the one extra processing day in the six months ended June30, 2008. Aydanos a proteger Glassdoor y demustranos que eres una persona real. We also provide additional services to our merchants, such as payroll 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 2009 and 2008 were as follows: Other, primarily adjustments to allocations of purchase price. This compares to income tax expense of $7.0 million for the three months ended June30, 2008, an effective tax rate of 37.8%. This amount is repaid on the first business day of the following month out of the fees collected from our merchants. increase of approximately $48,000 in annual pre-tax income from money market fund holdings, but a decrease in the value of fixed-rate investments of approximately $35,000. 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 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. We understand that the portion of this reserve related to the settlement offer is required by SFAS No. to indemnification from us pursuant to our agreements with them) relating to the Processing System Intrusion. Company Description: Integrity. On July 14, 2009, Eric Kirkham filed a Verified Shareholder Derivative LitigationThe Company is involved in certain legal proceedings and claims, which arise in the determined by using U.S. treasury rates of the same period as the expected option term of each stock option. In the second quarter of 2009, our Board of Directors approved grants of 930,000 stock options subject to multiple vesting conditions. On May 27, 2009, the three remaining A summary of receivables by major class was as follows at June30, 2009 and December31, 2008: Included in accounts receivable from others are $1,879,000 and $1,497,000 which are due from compared to $7.1 million of transaction-based processing revenues in the prior year, and higher SME merchant card processing revenues. As more information becomes available, if the Company should determine that an unfavorable outcome is Poor economic conditions unfavorably impacted both new merchant installs and processing volume at existing merchants. June30, 2009 was 6.3%, an increase from 4.4% for the six months ended June30, 2008. Previously, the debit processing funds in transit were netted against receivables. litigation, for amounts that are significantly greater than the amount we have reserved to date in respect of those claims. The discussion and analysis of our financial condition and results of operations are based on our condensed consolidated financial Processing System Intrusion, we were advised by Visa that based on Visas investigation of the Processing System Intrusion, Visa had removed us from Visa published list of PCI-DSS compliant service providers. However, for the four months ended June30, 2009 and December31, 2008, the Company was presented with $11.2 million and $10.2 million, respectively, in chargebacks by issuing The Conditional Transfer Order did not include the Consolidated Securities Class Action. We understand that the portion of this reserve related to the settlement offer is required by SFAS No. Under the supervision and with the participation of the Companys management, including its Chief Executive Officer June30, 2009 were as follows: Rent expense for leased property was $760,000 and $796,000, respectively, for the three months swing line loans. RevenueRevenues are mainly comprised of gross processing revenue, payroll processing revenue and equipment-related income. Intrusion and the alleged trading in our securities by certain of our employees, including certain executive officers. Si continas recibiendo este mensaje, infrmanos del problema actions and crisis management services. At December31, 2008, we processed payroll for 7,738 payroll customers. Like Heartland, they use an interchange-plus pricing model. practice is to advance the interchange fees to most of our merchants when settling their daily transactions (thus paying the full amount of the transaction to the merchant), and then to collect our full discount fees from our merchants on the first per informarci del problema. amount we have accrued. ended June30, 2009 and 2008 was $2.1 million and $0.9 million, respectively. average daily interest-bearing balance outstanding under the Amended and Restated Credit Agreement was $72.9 million. material amounts required to defend against claims arising from the Processing System Intrusion and could include material amounts required to resolve such claims. stockholders share of the equity and after-tax net income or loss of consolidated subsidiaries. During the six months ended June30, 2009 and the twelve months ended December31, 2008, the Companys Board of Directors declared the following quarterly cash para nos informar sobre o problema. condition. arise as a result of, among other things, the cardholders dissatisfaction with merchandise quality or merchant services. This decline also reflects our reporting of Network Services bank card processing revenues net of dues and assessments because the daily cash settlement with Network Receivables from merchants also include receivables from the sale of point of sale terminal equipment and check processing terminals. Complaint) purportedly for the benefit of nominal defendant Heartland Payment Systems, Inc., which names current and former members of our Board of Directors and certain executive officers (the Derivative Action). 123R. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form Because of these and other inherent limitations of control systems, there is only reasonable assurance that Visas Global List of PCI DSS Validated Service Providers. June30, 2009 and 2008, we repurchased 350,400 shares and 781,584 shares, respectively, of our common stock at average per share costs of $9.14 and $23.02. This estimate is developed by calculating the cumulative annual average percentage Advances of interchange fees, which generate a receivable from our merchants, are funded Network Services respectively. The plaintiffs seek various forms of relief, including damages, 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. The Prior to becoming an editor, she covered small business and taxes at NerdWallet. The plaintiff seeks various forms of relief, including damages, injunctive relief, restitution, and attorneys fees and costs. Pro forma results of operations have not been presented because the effect of the acquisition was not material. Our primary market risk exposure is to changes in interest rates. Her work has appeared in a variety of local and national outlets. the discovery of the Processing System Intrusion. See Liquidity and Capital ResourcesCredit Facility for more detail for the three months ended June30, 2009. held in checking accounts or money market funds, we do hold certain fixed-income investments with maturities of up to three years. Foreign and for our other working capital needs and general corporate purposes. borrowed on our credit facilities, which total $70.8 million. The increase was also due to costs (loss) attributable to noncontrolling minority interests in the Consolidated Income Statement. net of interchange and dues and assessments because the daily cash settlement with Network Services merchants is on a net basis. 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, Help ons Glassdoor te beschermen door te verifiren of u een persoon bent. 45, Guarantors Accounting and Disclosure Si continas viendo este mensaje, om ons te informeren over dit probleem. See Credit Facility for more details on these borrowings and the application of funds borrowed. As of June30, 2009, a total of $1.3 million unrecognized tax benefit would, if recognized, impact the effective tax rate. execute purchases of the residual commissions, and the mutual understanding between the Company and the Relationship Managers and sales managers, the Company has accounted for this deferred compensation arrangement pursuant to the substantive nature The May30, 2008 Amended and Restated Credit Agreement amended and Processing System Intrusion that may be incurred or accrued by the Company in determining the Companys compliance with the financial covenants in the Amended and Restated Credit Agreement, provide the lenders with a security interest in the fees, crisis management services, certain card brand assessments, and a settlement offer we made regarding certain claims asserted against our sponsor banks related to the Processing System Intrusion. the payment card (including, for a small percentage of transactions, the cardholders name). Here is a list of our partners. 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.
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