IMGCAP(1)]
Princeton, N.J.-based payment processor Heartland Payment Systems Inc.'s reported net income of $13.4 million for the third quarter ended Sept. 30, a nearly 14% increase from the $11.8 million in net income in the third quarter of 2007, the company reported today. Heartland's revenue was $424.8 million in the third quarter, a nearly 20% increase over the $354.6 million in the year-ago period. Heartland's card-processing volume hit $20 billion in the third quarter, a 42% increase over the $14.1 billion in the same quarter last year. In a statement, Robert Carr, Heartland chairman and CEO, attributed the growth, in part, to the company's acquisition earlier this year of the Network Services business of Alliance Data Systems Corp. (CardLine, 5/6). Then, Heartland forecasted that its volume of petroleum-industry transactions would increase from 3% of its total processing volume to 25%. Carr said Heartland had some immediate cost savings and "healthy" transaction volumes emanating from the Network Services business. Additionally, Heartland says that 89% of new merchants that began processing with Heartland in the third quarter were on the company's HPS Exchange processing system, which helps "sustain a healthy operating margin," Carr said. Heartland, however, has retreated slightly on its overall financial expectations for 2008 because of the economy. It expects 2008 net revenue to grow between 15% and 16%, or $349 million and $352 million, over 2007. The company previously forecasted 16% to 18% growth.
