Heartland Payment Systems' (HPY) first-quarter earnings benefited from an economic recovery boost that helped improve same-store sales among its small and midsize customers.
The Princeton, N.J.-based merchant processor reported total revenues of $470.5 million for the quarter ended March 31, up 0.6% from $467.6 million during the same period last year. Net income attributable to Heartland rose 76.9%, to $13.8 million from $7.8 million.
Same store sales rose 3.4%, and volume attrition of 12.2% was the lowest quarterly volume attrition since the third quarter of 2007, Heartland noted in its earnings release.
During a May 1 conference call with analysts, Maria Rueda, Heartland's chief financial officer, described how economic conditions can make same-store sales volatile.
"Consequently, we remain cautious in our expectations for both same-store sales and volume attrition for the year," she said.
Bob Carr, Heartland chairman and CEO, noted during the call that the processor recently added a mobile application that enables merchants to take credit, debit and gift cards using Apple iPhones, iPods and iPod Touches.
Discussing Square's efforts to provide small merchants with mobile terminals to accept cards, Carr said he is unaware of any business Square is taking away from Heartland. Carr also suggested a lack of due diligence on Square's part.
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