It focused its expansion strategies on eateries, brick-and-mortar retailers, liquor and convenience stores, automotive sales, repair shops and gas stations, professional provider, and lodging organizations. In January 2008, Heartland's management revise downwards its EPS guidance that is predicted for 2008.
The business compensated its sales force exclusively though commissions accounts. Avondale Partners noted that Heartland paid approximately 92 percent of the business's estimated gross profits created from retailers' accounts, which resulted in little free cash flow during the initial year of a merchant's contract. Avondale questioned the business's policy of capitalizing and amortizing signing bonuses and monthly residuals, rather than expensing them immediately. In early 2008, Morgan Keegan & Co., an investment firm, maintained its price objective for Heartland of $26-$29 per share.
PUBLICATION DATE: September 25, 2009 PRODUCT #: TB0025-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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