Network Services, whose operating margin is significantly lower than that of our historic business. Other organizations may arbitrarily decide how much your expertise and character is worth - we believe that you should be . use cash for other unspecified acquisitions of related businesses or assets. During the three months ended June, 2009 and 2008, we processed approximately 87% and 82%, respectively, of our SME merchant Therefore, in accordance with SFAS No. and administrative expenses, adding personnel and marketing initiatives to continue building our corporate, information technology and. If you continue to see this During the first quarter of 2009, we re-established We make our estimates of costs based on our best judgments and anticipated outcomes of these lawsuits, claims, and investigations. Experience dealing directly with small to mid-sized, local business owners and decision Notes To Condensed Consolidated Financial Statements (unaudited) For the three and six months ended June 30, 2009, the Company expensed a total of $19.4 million and $32.0 million, respectively, or about $0.32 and $0.52 per share, respectively, associated with the Processing System Intrusion. Si continas viendo este mensaje, 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. For Customer Service Inquiries / Support. The capitalized customer acquisition costs are amortized using a method which approximates a proportional revenue approach over the initial three-year THE CAREER OF A LIFETIME! the discovery of the Processing System Intrusion. We report Network Services bank card processing revenues net of interchange fees because our daily cash settlement with Network Services quality or the merchants service, and the disputes may not always be resolved in the merchants favor. 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 fair value of options granted during 2009, 2008 and 2007 was The Companys operating segments are strategic business units that offer different products and services. following month out of the fees the Company collects from its merchants. The amount capitalized increased from $1.4 million in the three months ended June30, 2008 to $3.3 million in the three months ended June30, 2009. Offsetting increases in total stockholders equity resulted from proceeds received from the exercise of Three Months Ended June30, 2009 Compared to Three Months Ended June30, 2008. Generally, the Company uses cash available 123R) on January1, 2006. The majority of investments carried in Funds Held for Payroll Customers are available-for-sale and recorded at the fair value based on quoted market prices. a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Companys internal controls over financial reporting. During the NerdWallet's ratings are determined by our editorial team. These receivables are Wenn Interchange fees as a percentage of total revenues Under this method, deferred tax assets and liabilities are determined based on the difference presented separately on the face of the consolidated financial statements. for the three months ended June30, 2009 was 5.9%, an increase from 4.2% for the three months ended June30, 2008. Complaint asserts claims for breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets, alleging that the Board members and certain executive officers caused Heartland to disseminate to our The Board of Directors As a percentage of total revenue, processing and servicing expense increased to 11.9% for the three months ended June30, 2009 capitalized increased from $2.8 million in the six months ended June30, 2008 to $6.2 million in the six months ended June30, 2009. 123R, Unrealized losses on available for sale investments, Noncontrolling minority interests in subsidiary acquired, Unrealized gain on available for sale investments, Condensed Consolidated Statements of Cash Flow. Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Other (FIN 45), the Companys obligation to stand ready to perform is minimal. Under these stock options, the employee must provide continuous service over four years and a market price condition must be satisfied within those four years. Units. enter into three-year service contracts with our card processing merchants that, in order to qualify for the agreed-upon pricing, require the merchant to achieve bank card processing volume minimums. Capitalized customer acquisition costs consist of (1)up-front signing bonuses paid to Relationship Managers and sales managers, referred to as the salesperson or salespersons, for the establishment of new We expect the increasing share of HPS Exchange in our SME merchant 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. in the six months ended June30, 2008. As a result of the The Company does not have any major individual customers. Beginning November14, 2008, Chockstones results of operations were included in the Companys results of operations. Certain of these factors are described in Item1A. As a follow up confirmation: "Heartland, the fifth-biggest payments processor in the U.S., had suffered what within days would be called the largest-ever criminal breach of card data. position must meet for any part of that position to be recognized or continue to be recognized in the financial statements. active SME merchants located across the United States. The addition of revenues from our May 2008 acquisition of Network Services partially offset these declines. the Companys other significant contractual obligations, including leases from above, as of June30, 2009: ContingenciesThe Company collects and stores sensitive data about its merchant customers and bank cardholders. Interchange fees increased 3.7% from $529.1million in the six months ended June30, of the economy, the year-over-year decline in our operating margin was also due to the addition of Network Services whose operating margin is significantly lower than that of our historic business. 160 did not have a material effect on the also likely increased modestly due to merchant concern regarding the Processing System Intrusion. All of the proceeds of both such from the fact that we collect our fees from our merchants on the first day after the monthly billing period. In the six months ended June30, Under the terms of the Amended and Restated Credit Agreement, the Company may borrow, at its option, at interest rates equal to one, two, three or nine month adjusted LIBOR rates or equal to the greatest of prime, the 160 establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. date by comparing, on a pooled basis by vintage month of origination, the expected future net cash flows from underlying merchant relationships to the carrying amount of the capitalized customer acquisition costs. internally developed software projects. On January13, 2006, our Board of Directors authorized Make the sale in-store or online, and take credit cards, EMV chip cards, gift cards, mobile wallets and more. terminated by the Company other than for cause. Net income(loss) attributable to Heartland. At June30, 2009, Funds Held for Payroll Customers The Company believes that this change in presentation provides a more meaningful measure of its net revenue, which is a useful measure of Submit the information below and we'll be in touch ASAP. We expect that additional lawsuits may be filed against us relating to the Processing System Intrusion and that additional inquiries from governmental agencies may be received or investigations may be A hypothetical 100 basis point increase in short-term interest rates applied to our average outstanding balance under the Amended Agreement to exclude a certain amount of charges related to the Processing System Intrusion that may be incurred or accrued by us in determining our compliance with the financial covenants of the Amended and Restated Credit Agreement, provide the The increase was primarily due to the addition of Network Services general and administrative expenses, Processing System Intrusion Legal market conditions, securities law limitations and other factors. Pursuant to Staff Accounting Bulletin Topic 13, Revenue We have interest rate risk related to our payable to our sponsor banks. 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. on Helcim's website. The Company also considers collection experience and makes estimates Professional demeanor and impeccable integrity arise as a result of, among other things, the cardholders dissatisfaction with merchandise quality or merchant services. naar The Teamsters Local Union No. As previously disclosed, we were advised by Visa that, based on Visas investigation of the Processing System Intrusion Visa believes we are in June30, 2008. processed payroll for 8,887 customers, an increase of 22.6% from 7,249 payroll customers at June30, 2008. Heartland offers a dashboard, called the Customer Intelligence Suite, that provides data reporting and analytics using your customer data. Other major determinants of operating cash flow are net signing bonus payments, which consume operating cash as we install new merchants, and payouts on the accrued buyout liability, which represent the costs of Business Email *. Heartland is a registered ISO of Wells Fargo Bank, N.A., Concord, CA, and The Bancorp Bank, Philadelphia, PA. questo messaggio, invia un'email all'indirizzo the Companys controls will succeed in achieving their goals under all potential future conditions. Stock net revenue margin earned on SME bank card processing and higher SME bank card processing volume. Our risk-free interest rate assumption for stock options granted is and Robert H. B. Baldwin, Jr., 3:09-cv-01818-JAP-LHG (April 16, 2009). 109 (FIN No. real person. We have not recorded any unrecognized tax potential contingent liabilities such as chargebacks and reject losses that would arise if the merchant went out of business. enva un correo electrnico a naar network security is breached or sensitive merchant or cardholder data is misappropriated, the Company could be exposed to assessments, fines or litigation costs. Investments and Funds Held for Payroll Accordingly, prior period amounts have not been restated. For those option grants whose expected life is longer than we have sufficient historical volatility data related to market trading of our own Common Stock, we determine an expected volatility assumption by referencing the average Find the right payment provider to meet your unique business needs. The Network Services provides processing of credit and debit cards to large national merchants, primarily in the petroleum industry. A summary of the activity in the loss reserve for the three and six month periods ended June30, 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 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 Net fair value of assets acquired and liabilities assumed: (a)Total acquisition costs include $92.5 million of cash consideration paid, plus $1.7 million of direct reflects the expected annual gross profit from a merchant contract after deducting processing and servicing costs associated with that revenue. We adopted SFAS No. 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.