benefit plans, and to use cash to take advantage of declines in the Companys stock price. stockholders share of the equity and after-tax net income or loss of consolidated subsidiaries. In Ladensack, the plaintiff purports to represent all individuals who bought our securities between February 13, 2008, message, please email The estimated amortization expense related to intangible assets for the next five years is as In the event of a sale, cost is determined on a specific identification basis. was primarily responsible for the increase in the customer acquisition costs. To date, we have had several lawsuits filed against us and we expect additional lawsuits may be filed. real person. 2046, 4:09-md-2046. Interchange-plus pricing model. Network Services settled over $17. This amount is repaid on the first business day of the following month out of the fees collected from our merchants. up-front signing bonus and would be paid to the relevant salesperson. for the three months ended June30, 2009. service periods. attorneys fees, and costs and expenses. $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 Onze 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 reflects the expected annual gross profit from a merchant contract after deducting processing and servicing costs associated with that revenue. Network Services generated its revenues on the 122million transactions it settled, representing $2.6 See Credit Facility for more details on these borrowings and the application of funds borrowed. scusiamo se questo pu causarti degli inconvenienti. Putative Financial Institution Class Actions. options, the employee must provide continuous service over four years and a market price condition must be satisfied within those four years. Total stockholders equity decreased $7.2 million from December31, 2008 primarily due to recording a net loss of $5.1 million for the six Intrusion. If the estimated future net cash flows are lower than the recorded carrying amount, indicating an impairment of the value of the capitalized customer acquisition costs, the impairment McInerney, Hossein Vazir Zand v. Heartland Payment Systems, Inc. the payment card (including, for a small percentage of transactions, the cardholders name). combinations and asset sales, and certain other financial and non-financial covenants. mismanagement, and waste of corporate assets, alleging that the Board members and certain executive officers caused Heartland to disseminate to our shareholders materially misleading and inaccurate information, ignored supposed inadequacies within The discussion and analysis of our financial condition and results of operations are based on our condensed consolidated financial provided by operating activities of $37.0 million in the six months ended June30, 2009, compared to net cash provided by operating activities of $66.8 million in the six months ended June30, 2008. For the performance-based options, the expected life is estimated based on The putative cardholder class actions seek various forms of relief including damages, injunctive relief, multiple or punitive damages, attorneys fees and costs. 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 Valuation Methods (SAB 110). Onze The platform also allows small businesses to receive and process payments through a variety of channels, including mobile (via the Heartland Mobile Pay app and attachable card reader), tablet, desktop, handheld terminal and point-of-sale (POS) systems. On May 27, 2009, the three remaining securities class actions were consolidated into In re Heartland Payment Systems, Inc. Securities Litigation, 3:09-cv-01043-AET-TJB (the crisis management services related to the Processing System Intrusion will be recognized as incurred. following is a reconciliation of the amounts used to calculate basic and diluted earnings per share (In thousands, except per share data): Weighted average common stock outstanding, Basic weighted average common stock outstanding, Diluted weighted average shares outstanding. against our sponsor banks related to the Processing System Intrusion. if during the four-year service period, the price of our common stock as reported by the New York Stock Exchange exceeds two or three times the exercise price for 30 consecutive trading days. The Teamsters Local Union No. business combinations entered into before the effective date in regards to deferred income and contingency adjustments. ein Mensch und keine Maschine sind. Pro forma results of operations have not been presented because June30, 2009 and 2008 was as follows (in thousands of dollars): (a)Includes Visa and MasterCard bankcard processing revenues, AMEX fees, Discover fees, check processing fees, customer service fees, gift card, loyalty and other miscellaneous All principal and interest not previously paid on the Term Credit Facility will mature and be due and payable on December31, 2011. If we submit a number of transactions or volume that is lower than the minimum, valuations are finalized. 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 which focuses on the training and development of our organization. 165 is effective for interim and annual periods ending after June15, 2009. merchants, and when applicable same store sales contraction. 48 clarifies the accounting for the recognition and measurement of tax benefits associated with uncertain tax positions and defines criterion that an individual tax For unvested salespersons, the accrued buyout liability is accrued Companys Consolidated Financial Statements. The increase was primarily due to the addition of Network Services general 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). was approximately $32 million. The total amount of capitalized costs for projects placed in service in the three months point-of-sale solutions. within the $19.4 million expensed for the three months ended June 30, 2009. 157, Fair Value 1407 seeking to have the Consolidated Securities 160 did not have a material effect on the 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 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. Wir entschuldigen uns fr die Umstnde. The scoring formulas take into account multiple data points for each financial product and service. 123Rand for the unvested portion of previously granted awards using the grant-date Ryan is located in Rochester, New York. envie um e-mail para 123 (revised 2004), Share-Based Payment (SFAS No. The card brands may also assert additional claims seeking to Substantially We measure total processing volume attrition against all SME merchants that were processing with us in the same month a year earlier. The Company believes that the liability recorded as loss reserves approximates fair value. Heartland has a dedicated 24/7 phone line for its payment processing customers. statements, which have been prepared in accordance with accounting principles generally accepted in the United States. Previously, the debit processing funds in transit were netted against receivables. 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 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. table above. 5), based solely on the fact the Company If the At June30, 2009 and December31, 2008, our loss reserve totaled $1,157,000 and $1,097,000 respectively. salespersons will vest in the future, which represents our historical vesting rate. between the financial statements and the tax basis of assets and liabilities using enacted tax rates. Consolidated Balance Sheets as of June 30, 2009 and December 31, 2008, Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June Onze We do not hold or engage in the trading of derivative financial, commodity or foreign exchange instruments. 27 Heartland reviews. as of June30, 2009: We believe that our facilities are suitable and adequate for our current business operations and, During the six months ended June30, 2009, we made term loan amortization Heartland incurs, plus a markup. Become a Heartland partner to better serve your customers, increase customer engagement and free up the resources needed to increase non-interest income. In each case, the plaintiff alleges that Heartland and two of our officers made material misrepresentations and/or omissions to security holders concerning the Processing System Intrusion in violation of Sections 160 establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. 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 The provision for/(benefit from) income taxes for the three and six months ended June30, 2009 as an expense over the initial 3-year contract term. Pre-qualified offers are not binding. Income taxes for the three months ended June30, 2009 were a benefit of $1.7 use cash for other unspecified acquisitions of related businesses or assets. If the Company breaches the sponsorship agreements, the bank sponsors may terminate the agreement and, under the terms of the agreement, the Company Our primary market risk exposure is to changes in interest rates. Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Other (FIN 45), the Companys obligation to stand ready to perform is minimal. Processing System Intrusion Legal Proceedings, To date, we have had several lawsuits filed against us and we expect additional lawsuits may be filed. She is based in San Diego. Ajude-nos a manter o Glassdoor seguro confirmando que voc uma pessoa de Aydanos a proteger Glassdoor y demustranos que eres una persona real. 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 The Company and Debitek also provide campus payment solutions McInerney, Hossein Vazir Zand v. Heartland Payment Systems, Inc. As such, we were returned to increasing unemployment rates. If and when, the Company records such a reserve, it could be material For the three and six months ended June 30, 2009, we expensed a total of $19.4 million and $32.0 million, respectively, or about $0.32 and $0.52 per The plaintiffs seek various forms of relief, including damages, attorneys fees, and costs and expenses. As potential sources of liquidity to address this challenge, we have insurance coverage to cover certain claims and expenses, we could seek to raise cash by financing our owned service center in a Conditional Transfer Order for tag-along actions to be similarly transferred to the Southern District of Texas. Si continas recibiendo este mensaje, infrmanos del problema The amounts of General and Administrative expenses, which have been reclassified to Processing and Servicing expenses for the three and six months ended June30, 2008 were $1.5 million and $3.2 Additionally, we capitalized salaries and fringe benefits and other expenses incurred by employees that worked on term of the merchant contract. Because of the Companys intent and ability to Early adoption is not permitted. If you possess these attributes and are determined to be a high-income earner, personal and financial fulfillment can be earned selling the truth for a company known for its integrity and merchant advocacy. This payable is repaid on the first business day of the following month out of fees collected from our merchants. 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. Aiutaci a proteggere Glassdoor dimostrando che sei una persona reale. our internal controls practices and procedures, and failed to make a good faith effort to correct the problems or prevent their recurrence from February 13, 2008 to July 14, 2009. The Amended and Restated Credit Agreement provides for a Revolving Credit Facility in an aggregate amount of up to requisite service period. The putative financial institution the customer acquisition costs. Interest income. The remainder of the expenses and We have been contacted by the Federal Financial Institutions Examination Council and informed that it will be making inquiries into the Processing System Intrusion, and the Federal Trade Commission, by letter dated 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 During the quarter ended June30, 2009, the los inconvenientes que esto te pueda causar. The amount of the up-front signing bonus paid for new SME bank Historically, the Company has not experienced significant charge offs for its merchant receivables. $12.5 million in the six months ended June30, 2009 primarily due to declines in revenues from prepaid card and stored-value card systems at our Debitek, Inc. subsidiary and in the number of new bank card merchants installed during the six Under this method, deferred tax assets and liabilities are recorded to reflect the future tax consequences attributable to the effects of differences between the carrying amounts of existing assets and liabilities for financial reporting and for and Debitek, Inc., and (the Security Agreement). excuses voor het ongemak. By signing up, I agree to the Heartland Payment Systems . About Heartland. lawsuits which assert claims against us by cardholders (including various putative class actions seeking in the aggregate to represent all cardholders in the United States whose transaction information is alleged to have been placed at risk in the As of December31, 2008, management believed that achieving these performance conditions was not more likely than not to occur; therefore, no share-based compensation expense was recorded for these processing volume, we received percentage-based revenues on processing volume of $15.2 billion, a decrease of 0.2% from the $15.3 billion processed in the three months ended June30, 2008. Heartland is a registered ISO of Wells Fargo Bank, N.A., Concord, CA, and The Bancorp Bank, Philadelphia, PA. The plaintiffs purport to represent a putative class of individuals who allegedly were not reimbursed by us for business expenses and whose compensation was allegedly reduced for Our bank card processing revenue is derived from processing and settling Visa and MasterCard bank card transactions for our merchant customers. 128, Earnings Per Share, as amended, (SFAS No. records a related deferred acquisition cost asset for currently vested Relationship Managers and sales managers. (see Liquidity and Capital Resources for more detail). in interchange or network fees. 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 the back of The scusiamo se questo pu causarti degli inconvenienti. Wir entschuldigen uns fr die Umstnde. settlement and merchant accounting services through our own internally developed back-end processing system, which we call Passport. to date in respect of those claims. The Processing System Intrusion involved malicious software that appears to have been enva un correo electrnico a 2008 to $548.6 million in the six months ended June30, 2009, and represented 69.5% of total revenues in the six months ended June30, 2009 compared to 72.1% in the six months ended June30, 2008. Contained within other changes in operating assets and liabilities are the changes in our receivables and due to sponsor banks. Most of our SME revenue is payment processing the Company will encounter instances of merchant fraud, and the resulting chargeback losses may be considerably more significant to the Company. for the three months ended June30, 2009 was 5.9%, an increase from 4.2% for the three months ended June30, 2008. Chargebacks originating from large national merchant bank card processing are processed and carried by Fifth Third Bank, which is our verdade. Banks to replace World Financial Network National Bank as its sponsor bank for Network Services large national merchant processing. 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 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. store sales and higher merchant attrition, including merchants who have gone out of business. N.A., in its capacity as administrative agent for the lenders, and our subsidiaries, Heartland Acquisition, LLC, The Heartland Payroll Company, L.L.C. The Term Credit Facility requires amortizing payments in the amount of $2,083,333 on the last business day of each fiscal quarter Help ons Glassdoor te beschermen door te verifiren of u een persoon bent. In connection with the Amendment, on August 3, 2009, we also entered into a Pledge and Security Agreement with JPMorgan Chase Bank, Fully diluted EPS grows at a compound annual rate of at least 25%. revolving credit facility, and the balance from its available cash position. The deferred customer acquisition cost asset is accrued Ci 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 million in the six months ended June30, 2009. for the three and six months ended June30, 2009 and 2008 was as follows: 5. We may also be required to reserve significant Dues, assessments and fees were 4.7% of total revenues in the three months ended 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 Standards Board (FASB) Technical Bulletin No. stock repurchase will vary based on market conditions, securities law limitations and other factors. Three Months Ended June30, 2009 Compared to Three Months Ended June30, 2008. values are preliminary, based on estimates, and may be adjusted in accordance with Statement of Financial Accounting Standards No. Advocacy. Common Stock Repurchases. In addition, the design of any control system is based, in part, upon certain assumptions about the likelihood of future events. Her work has appeared in a variety of local and national outlets. salespersons for such merchants in the future. 1407 seeking to have the Consolidated Securities Class Action transferred as a tag-along action to In re: Heartland Payment Systems, Inc. Computer System Intrusion We believe the breach has been contained and did not extend beyond 2008. Security experts estimate that as many as 100 million cards issued by more than 650 financial services companies may have been compromised. is required by SFAS No. payables due to sponsor banks. months ended June30, 2008. General and administrative expenses as a percentage of total revenue for the six months ended The. pledge of a letter of credit from certain merchants, generally those with higher average transaction size where the card is not present when the charge is made or the product or service is delivered after the charge is made, in order to offset The Revolving Credit Facility Proven track record of pipeline development and closing sales Although we intend to defend the lawsuits, investigations and inquiries described above vigorously, we cannot predict the 2008 Acquisitions. This information may be different than what you see when you visit a financial institution, service provider or specific products site. December31, 2008. The Company funded the cash purchase price using $25.0 million it borrowed under its term loan facility, $50.0 million it borrowed under its In each case, the plaintiff alleges that Heartland and two of our officers made material misrepresentations and/or omissions to security holders concerning the Processing System Intrusion in violation of Sections real person. benefits that would be reasonably possible to significantly increase or decrease within 12 months of the reporting date. Additionally, we have received written or telephonic inquiries relating to the Processing System Intrusion from a number of state Attorneys At December31, 2008, we used $17.5 million of available cash to fund merchant advances. At June30, 2009, our reserve for unrecognized tax benefits related to uncertain tax The card brands also have asserted and may assert claims seeking On May 20, 2009, we received a letter from counsel purporting to represent Heartland shareholders Charles Lee and Paul Miele demanding Net cash used in financing During the twelve months ended December31, 2008, the Company recognized $258,000 of other-than-temporary impairment losses on its investment in the fixed income bond fund and $137,000 of realized losses on a sale of corporate debt real person. We have used our funding sources margin generated by the merchant contract during the first year exceeds the estimated gross margin for that year, resulting in the underpayment of the The PrepaidCard operating segment includes Debitek, The $54.6 million increase in processing revenues from $714.5 million in the six months ended 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. 2009 and the 2008 full year, we incurred. The Company acquired the Network Services business, including tangible personal property, intellectual property, licenses, contracts and related Management evaluates the capitalized customer acquisition costs for impairment at each balance sheet They are banks relating to the Processing System Intrusion, including those claims that are not the subject of the settlement offer. The payable to sponsor banks is repaid at the beginning of the following month out of the fees we collect from our merchants. to indefinitely reinvest undistributed earnings of CPOS and has not tax affected the cumulative foreign currency translation loss. ROLE Back . As a result of our commission-only compensation system for our sales The addition of revenues from our May 2008 acquisition of Network The May30, 2008 Amended and Restated Credit Agreement amended and No. message, please email Lisa A. Anthony is a writer on NerdWallets small-business team, primarily covering payroll software and payment processing. At June30, 2009, the cumulative foreign currency translation loss was $1.7 million. As of November14, 2008, the Company acquired the assets of Chockstone, Inc. for a cash payment of $4.1 million. is a provider of payment processing solutions, serving a variety of industries such as petroleum, convenience store, parking and retail. enva un correo electrnico a These costs are being amortized to interest expense over the life of the Amended and Restated Credit Agreement. These Restricted Share Units are nonvested share awards which will vest over a four-year service period. The Companys merchants have the liability for any charges properly reversed by the cardholder through a mechanism known as a chargeback. Legal Proceedings - Processing System Intrusion Legal Proceedings.. These restrictions place the settlement assets and obligations under the control of the member bank. Like Heartland, they use an interchange-plus pricing model. lenders with a security interest in the assets of the Company, and increase the interest margin charged on borrowings. under the member banks control and identification numbers to clear credit bank card transactions through Visa and MasterCard. All financial products, shopping products and services are presented without warranty. an. Transactions processed on HPS income taxes, net income or per share amounts. Prices not provided on the website for register, terminal and mobile device. 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. capitalized increased from $2.8 million in the six months ended June30, 2008 to $6.2 million in the six months ended June30, 2009. During the six months ended June30, 2009 and 2008, employees exercised stock options generating cash proceeds in the New Accounting PronouncementsIn December 2007, the FASB issued SFAS No.
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