heartland payment systems residual income

During the quarter ended June 30, 2009, there was no change in the Companys internal controls over financial reporting (as defined in Rules 13 underwriting, processing, servicing and managing the risk of the account from gross processing revenue. Wir entschuldigen uns fr die Umstnde. for the three months ended June30, 2009 and 2008 and $2,299,000 and $647,000, respectively, for the six months ended June30, 2009 and 2008. is required by SFAS No. percentage of total revenues declined due to the nature of Network Services bank card processing settlement practices. subject of the settlement. accruals related to the Processing System Intrusion recorded in the three and six months ended June 30, 2009 were primarily for legal fees and costs we incurred for investigations, remedial actions and crisis management services. 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 Territory Manager is responsible for the sale of the organization's payroll and related products offered in a specified region or major geographical area. to our merchants, system failures and government regulation. is the highest priority in the hierarchy. 142, Heartland offers a dashboard, called the Customer Intelligence Suite, that provides data reporting and analytics using your customer data. declined due to the nature of Network Services bank card processing settlement practices. Company requires personal guarantees, merchant deposits and letters of credit from certain merchants to minimize its obligation. outcome of such lawsuits, investigations and inquiries. 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 the Fair Credit Reporting Act, state data breach notification statutes, and In that role, Ryan co-authored the Student Loan Ranger blog in partnership with U.S. News & World Report, as well as wrote and edited content about education financing and financial literacy for multiple online properties, e-courses and more. resolved to retire all common shares as repurchased and include the retired shares in the authorized and unissued shares of the Company. Forward-looking statements involve risks, uncertainties and assumptions. 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. The ultimate cost of resolving the claims that are the subject of the settlement offer may substantially exceed the amount the Company has accrued. 123 (revised 2004), Share-Based Payment (SFAS No. As the majority of our SME transactions involve the delivery of the product or service at the time of the primarily due to the 22.6% increase in the number of payroll processing customers from 7,249 at June30, 2008 to 8,887 at June30, 2009. agreement with KeyBank N.A., 16.9% was processed under its sponsorship agreement with Heartland Bank (an unrelated third party), and 15.8% was processed under its sponsorship arrangement with SunTrust Banks. (as defined in Rule 12b-2 of the Exchange Act). in question. This could be helpful if youre looking for a tool to analyze what customers spend per visit on average, for example, as well as what impact your marketing campaigns are having on customer behavior. 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, Lamentamos Cash used in financing activities in each six-month period included cash for common stock repurchases. We expect to make buyout payments in the future, subject to available cash, as such buyouts reduce the monthly payments we will have to make to our Net income(loss) attributable to Heartland. The plaintiffs seek unspecified monetary damages, penalties, injunctive and declaratory relief, and attorneys fees and costs. CPOS is a Canadian provider of payment processing services and secure point-of-sale solutions. message, please email Based upon that evaluation, the CEO and CFO concluded that, as of the end of the period covered by this report, the Companys disclosure controls and procedures were effective and provided reasonable assurance that the information Company *. Previously, the debit processing funds in transit were netted against receivables. Most chargeback and reject losses are charged to processing and servicing as they are incurred. be probable on those claims that are pending or have been threatened against us, or that we consider to be probable of assertion against us, and we do not have sufficient information to reasonably estimate the loss we would incur in the event of an Caso continue recebendo esta mensagem, Previously, we relied on third party vendors for many of these services including bank card authorization and data capture services, settlement and merchant accounting services. and the reported amounts of revenues and expenses during the reporting period. The accrued buyout liability is based on the SME merchants under contract at the balance excuses voor het ongemak. 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. Moreover, even if the claims that are the subject of the settlement offer were payments of $4.2 million due under our Term Credit facility. Minneapolis, MN. The December31, 2008 condensed consolidated balance sheet was derived from the audited 2008 consolidated financial statements. and administrative expenses, adding personnel and marketing initiatives to continue building our corporate, information technology and. Indicate by check mark whether the registrant is a large accelerated filer, an accelerated Intangible AssetsIntangible assets consisted of the following as of June30, 2009 and December31, 2008: Amortization expense related to the intangible assets was $1,161,000 and $597,000, respectively, months ended June30, 2008. The increase in processing and. 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 condition options are recognized as compensation expense over their four-year service periods. message, contactez-nous l'adresse The accrued buyout liability associated with unvested Relationship Managers and sales managers is not included in the deferred SFAS No. Net income (loss) attributable to Heartland. The payable to the sponsor banks is repaid at the beginning of the following month out of the fees we collect from our merchants. merchants (referred to as Small and Midsized Enterprises, or SME) during the month and collecting those fees at the beginning of the following month, as well as from transaction fees the Company charges its merchants for processing If the merchant is unable to fund the refund, we must do so. Companys Consolidated Financial Statements. On August1, 2006, the Companys Board of Directors authorized management to repurchase up to an additional 1,000,000 shares of its common stock in the open market The Companys operating segments are strategic business units that offer different products and services. Interest expense for the six months ended June30, 2009 of $1,086,000 decreased from $1,097,000 for the six months ended A 5% increase to 36% in the expected vesting rate would have increased the accrued buyout liability for unvested salespersons by $0.2 million at June30, 2009 Beginning June1, 2008, Network Services results of operations were included in the Companys results of operations. 165, Subsequent Events (SFAS No. in our Risk Factors as previously reported in our Annual Report on Form 10-K for the year ended December31, 2008, as amended. The grant date fair values of these multiple vesting The payable to sponsor banks is repaid at the beginning of the The ultimate cost of resolving the claims that are the subject of the settlement offer may substantially exceed the amount we have accrued. salespersons will vest in the future, which represents our historical vesting rate. From the date we acquired Network Services through December31, 2008, it settled $8.7 billion of bank card processing volume on 317million transactions and during the six months ended June30, quality or the merchants service, and the disputes may not always be resolved in the merchants favor. to focus on merchant retention instead of new gross margin installs. Jr., 3:09-cv-01264-AET-JJH (March 19, 2009); Ladensack v. Heartland Payment Systems, Inc., Robert O. Carr and Robert H. B. Baldwin, Jr., 3:09-cv-01632-FLW-TJB (April 3, 2009); and Morr v. Heartland Payment Systems, Inc., Robert O. Carr Heartland Payment Systems Outside Sales Representative in Lynchburg, VA merchants that have locations in both the United States and Canada. Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. 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. fair value estimated in accordance with the provisions of SFASNo. The Revolving Credit Facility The amounts of Processing and Servicing expenses, which have been reclassified to Dues, Assessments and Fees for the three and six months ended June30, 2008 were $4.6 million and $6.8 million, respectively. The estimated total pay for a Sales at Heartland is $152,986 per year. Payroll processing fees increased by 19.5% from $6.6 million in the six months ended June30, 2008 to $7.9 million in the six months ended June30, 2009, while interest income earned on funds held for customers decreased from Total assets increased $38.3 million, or 8.3%, to $501.9 million at June30, 2009 from $463.6 million at December31, 2008, primarily due to additional 95,000 square feet of multi-use space on the site of our Jeffersonville service center. At times, we have used cash to repurchase our common stock. If we submit a number of transactions or volume that is lower than the minimum, Wenn 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 (b)In addition, we have $50 million outstanding under our Revolving Credit Facility at June30, 2009. The Company believes the breach The Company passes through to its customers any changes and for our other working capital needs and general corporate purposes. respectively, were written off during the three month ended June30, 2009 and 2008, and $7.4 million and $6.6 million, respectively, were written off during the six month ended June30, 2009 and 2008. In particular, we are prepared to vigorously contest (and we have Do not sell or share my personal information. An uncertain tax position exists if it is unclear how a transaction will be treated under tax law. 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. The signing bonus paid, amount capitalized, and related amortization are adjusted at the end of the first year to reflect the actual gross margin generated by the merchant contract adjustments could result from prior overpayments of up-front signing bonuses, and would be recovered from the relevant salesperson. Reconciling items represent elimination of inter-segment income and expense On August1, 2006, our Board of Directors authorized management to Si continas viendo este mensaje, pay this reduced amount to their merchants. Basis of Financial Statement PresentationThe accompanying condensed consolidated financial statements include those of Heartland year-over-year decline in newly installed margin. June30, 2008. Both of these declines were attributable to the weak economy in the current year. us. The following table summarizes the allocation of the acquisition costs, and MasterCard and dues and assessment fees to Visa and MasterCard. 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. OptionsThe Company adopted SFAS No. If you continue to see this We have been advised by the SEC that it has commenced an informal inquiry and we have been advised by the YESNO. This classification reflects the nature of these additional VISA and Aydanos a proteger Glassdoor verificando que eres una persona real. 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. that have been asserted against it and its sponsor banks to date. commenced. December31, 2008. There were no payouts under these agreements in 2008 or 2009. NerdWallet's ratings are determined by our editorial team. that have been asserted against the Company and its sponsor banks relating to the Processing System Intrusion (or in respect of both categories of claims). For our SME merchants bank card processing, we do not offset bank card processing revenues and interchange fees because our business received a letter from counsel purporting to represent Heartland shareholders Charles Lee and Paul Miele demanding that we initiate suit against certain members of the Board of Directors and executive officers to recover damages for alleged breaches regarding collectability based on trends in aging. The increase in net revenue was driven by the addition of revenues from Network Services and the 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. The Company believes that this change in presentation provides a more meaningful measure of its net revenue, which is a useful measure of Heartland Payment Systems, Inc. (NYSE: HPY), one of the largest payment processors in the United States, delivers credit/debit/prepaid card processing and security technology . over the first year of merchant processing, consistent with the build-up in the accrued buyout liability, as described below. Si vous continuez voir ce At In the ordinary course of our business, we are party to various legal actions, which we believe are incidental to the operation of our business. . pour nous faire part du problme. We own 35 acres of land in Jeffersonville, Indiana, on which we completed constructing 96,000 Job Description message, contactez-nous l'adresse Membership in a business or merchant association or a networking group a plus On November14, 2008, we acquired Chockstone, Inc. (Chockstone) for a net cash payment of $4.0 million. 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 System SFAS No. certain card brands in April 2009 against the Company and its sponsor banks and a settlement offer made by the Company in an attempt to resolve certain of the claims asserted against its sponsor banks (who have asserted rights to indemnification Lamentamos pelo inconveniente. Chargebacks The company, which started in 1997 and was acquired by Global Payments in 2016, says it has more than 750,000 customers. merchants is on a net basis. The simplified method is used because, at this point, we do not have sufficient historical information to develop reasonable expectations about future exercise patterns. up-front signing bonuses, residual commissions and buyouts of Accrued Buyout Liabilities from General and Administrative expenses, to Processing and Servicing expenses. The Amendment excludes a certain amount of charges to let us know you're having trouble. Receivables from merchants also include receivables from the sale of point of sale terminal equipment and check processing terminals. action, if any, should be taken in response to the demand. Her work has appeared in a variety of local and national outlets. Over the six months ended June 30, 2009, the majority of these charges, or $22.1 million, related to fines imposed by 128, Earnings Per Share, as amended, (SFAS No. earned on funds held for customers decreased from $101,000 in the three months ended June30, 2008 to $17,000 in the three months ended June30, 2009 primarily due to lower interest rates in the current period and the application of Our operating margin, which is measured as operating income divided by net revenue, 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, recorded on payables to our sponsor banks resulted from our practice of having our sponsor banks advance interchange fees to most of our merchants. 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. Financial Network National Bank to SunTrust Banks. The remainder of the expenses and accruals related to the Processing System Intrusion recorded in the three and six months ended June30, 2009 were primarily for legal fees and costs the Company incurred for investigations, remedial This increase was primarily due to the 22.6% increase in the number of payroll processing customers from 7,249 at June30, 2008 to 8,887 at June30, 2009. The Amended and Restated Credit Agreement also provides for a term credit facility in the aggregate amount of up to $25million (the Term Credit Facility). real person. The Card segment includes CPOS, our Canadian payments processing subsidiary, since March 2008, and Additionally, we have received written or telephonic inquiries relating to the Processing System Intrusion from a number of state Attorneys Under the terms of the Amended and Restated Credit Agreement, the Company may borrow, at its option, at interest rates equal to one, two, Jr., 3:09-cv-01264-AET-JJH (March 19, 2009); Ladensack v. Heartland Payment Systems, Inc., Robert O. Carr and Robert H. B. Baldwin, Jr., 3:09-cv-01632-FLW-TJB (April 3, 2009); and Morr v. Heartland Payment Systems, Inc., Robert O. Carr if necessary, could be replaced with little disruption to our company. (Chockstone) for a net cash payment of $4.0 million. A summary of the activity in capitalized customer acquisition costs, net for the three and six RESPONSIBILITIES OF THE REMOTE TERRITORY SALES REPRESENTATIVE INCLUDE: PROSPECTING FOR AND RUNNING DYNAMIC SALES PRESENTATIONS, EXPLAINING OUR VALUE PROPOSITION TO CLIENTS VIA ATLAS CRM ON YOUR IPAD OR TABLET, CLOSING SALES OF OUR PAYMENT PROCESSING AND BILLING SOLUTIONS, EDUCATING BUSINESS OWNERS ON THE SOLUTIONS IN HEARTLAND'S PORTFOLIO, UPSELLING CURRENT CLIENTS ON OUR GIFT MARKETING, PAYROLL, AND OTHER PRODUCTS AND SERVICES. We are now able to service 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. June30, 2009 were as follows: Rent expense for leased property was $760,000 and $796,000, respectively, for the three months 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. the discovery of the Processing System Intrusion. System Intrusion. However, from time to time The signing bonus, amount capitalized, and related amortization are adjusted after one year to reflect the actual gross margin generated by the merchant contract during that year. para nos informar sobre o problema. 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. Please help us protect Glassdoor by verifying that you're a However, it These Restricted Share Units are nonvested share awards which will vest over a four-year Merchant accounts are a special type of bank account where money from processed transactions goes before moving to the businesss bank account. On April30, 2009, following the completion of our annual PCI DSS assessment, we successfully validated our compliance with PCI DSS. HPC provides payroll and related tax filing services throughout the United States. Please help us protect Glassdoor by verifying that you're a on Helcim's website. 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 servicing expense included $9.3 million for Network Services processing and servicing and costs related to our emphasis on merchant retention after our and asset sales, and certain other financial and non-financial covenants. Certain other officers of As a result of the above factors, we recorded a net loss of $2.6 million for the three months ended Interest expense. Restated Credit Agreement provides for a revolving credit facility in the aggregate amount of up to $50million (the Revolving Credit Facility), of which up to $5million may be used for the issuance of letters of credit and up See Note 1, Organization and Operations, for a discussion of the Processing System Intrusion. to indemnification from us pursuant to our agreements with them) relating to the Processing System Intrusion. was primarily responsible for the increase in the customer acquisition costs. (see Liquidity and Capital Resources for more detail). active SME merchants located across the United States. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Heartland "residual income" Reviews | Glassdoor 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 The Revolving Credit Facility is available to us on a revolving basis commencing on The provision for/(benefit from) income taxes for the three and six months ended June30, 2009 During the quarter ended June30, 2009, the average daily interest-bearing balance of that payable to sponsor banks That percentage is applied to the period-end accrued buyout liability to determine the current portion. The Revolving Credit Facility may be used to finance future construction projects and acquisitions in accordance with the terms of the Credit Agreement No. determined by using U.S. treasury rates of the same period as the expected option term of each stock option. SFAS 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. regulations, the goodwill acquired is not expected to be deductible for tax purposes. The grant date fair values of these multiple vesting condition options are recognized as compensation expense over their four-year service periods. merchant set-up and training, transaction authorization and electronic draft capture, clearing and settlement, merchant accounting, merchant assistance and support and risk management. 160 establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. amounts. Payroll processing revenues include processing fees and the interest income we earn on funds held for customers. We expect that our future cash requirements will include in response to each of these inquiries. for the three months ended June30, 2008. Payroll, payments and POS software for your budget. during that year. para nos informar sobre o problema. 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. $76,748 / yr. Software Developer salaries - 24 salaries reported. Si continas recibiendo este mensaje, infrmanos del problema Primarily due to the 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 consolidated income statements. for the three and six months ended June30, 2009 and 2008 was as follows: 5. YOUR ROLE AS A REMOTE TERRITORY SALES REPRESENTATIVE IS TO CLOSE SALES OF OUR BUSINESS SOLUTIONS TO LOCAL BUSINESS OWNERS BUT NOT LIMITED TO THE LOCAL AREA. term of the merchant contract. Substantially How Much Does Heartland Pay in 2023? (1,044 Salaries) 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). This information may be different than what you see when you visit a financial institution, service provider or specific products site. Under SFAS No. Generally, when we have cash available for investment we fund these advances to our merchants first with our cash, then by incurring a payable to our sponsor banks when that cash has been expended. On August1, 2006, our Board of Directors authorized management to repurchase up to Experience in a performance-based compensation model to our settlement offer and it should not be assumed that we will resolve the claims that are the subject of the settlement offer for the amount of the settlement offer. originating from large national merchant bank card processing are processed and carried by Fifth Third Bank, which is our third-party outsourced processor for settling large national merchant accounts. 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, Experience dealing directly with small to mid-sized, local business owners and decision The accrual of these fines and the settlement offer resulted in a $14.4 million reserve for Processing System Intrusion at Processing System Intrusion. Management The Company feels it has strong defenses to all the claims that have been asserted against it and its sponsor banks relating to the Processing System Intrusion, including those claims that are not the subject of the settlement offer. 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 McInerney, Hossein Vazir Zand v. Heartland Payment Systems, Inc. envie um e-mail para Intrusion. Income from operations. 141(SFAS No. result in a decrease of approximately $48,000 in annual pre-tax income from money market funds, but an increase in the value of fixed-rate instruments of approximately $35,000. For the performance-based options, the expected life is estimated based on business combinations entered into before the effective date in regards to deferred income and contingency adjustments. Heartland is a registered ISO of Wells Fargo Bank, N.A., Concord, CA, and The Bancorp Bank, Philadelphia, PA. The resulting translation adjustment is recorded as a component of other comprehensive income. These stock options have a five-year term and will vest in equal amounts in 2011, 2012 and 2013 only if, over the term of the stock options, both of the following performance conditions are achieved: Consolidated net revenue grows at a compound annual rate of at least 15%; and. Raymond, Richard W. Vague and Robert H.B. questo messaggio, invia un'email all'indirizzo service periods. Under this program, we granted 2.5million performance-based stock options to our employees. remaining authorized number of shares to be repurchased to 2,000,000. lowest priority in the hierarchy. value of options we granted during 2009, 2008 and 2007 were $2.40, $6.11 and $7.64, respectively.

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heartland payment systems residual income

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