Before we begin, I'd like to mention that both Bobs are calling in from different locations this morning, so we appreciate your patience and cooperation during Q&A in advance. I also want to remind you that some of our discussions may contain statements of a forward-looking nature, which represent management's beliefs and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions that are based on information currently available to us. Actual results may differ materially from those expressed in the forward-looking statements due to many factors. Information concerning these factors is contained in the report of our financial results we released earlier this morning and in the company’s SEC filings. We undertake no obligation to update any forward-looking statements made during this call to reflect events or circumstances that may arise after this call.Now, I'd like to turn the call over to Bob Carr. Robert O. Carr Thank you, Maria, and good morning, everyone. I'd like to thank you all for joining us today and for your interest in Heartland. As you saw on our financial results for the second quarter, we reported record quarterly earnings with adjusted net income of $20.3 million, or $0.50 per share, increases of 50% and 49%, respectively, over the comparable figures for the same quarter last year. Results reflect continued strong net revenue growth and a significant improvement in our operating margin, which was 22% for the quarter, 200 basis points above our 20% near-term goal. Among the more notable highlights for the quarter, we achieved record quarterly transaction processing volume, as we continue to increase new margin installed and experience same-store sales growth. The new margin installed was up 21% in the quarter, to the best level in 3 years, as both our established and new relationship managers' productivity reached all-time highs. Led by Heartland School Solutions, payroll, Heartland loyalty marketing and SmartLink, we also delivered strong growth in our adjacent non-card businesses. In Heartland School Solutions, we acquired Lunch Byte, our 5th and one of our largest acquisitions, expanding our market-leading position in the K-12 school nutrition and POS technology industry. Heartland School Solutions now services more than 29,000 K-12 schools across the U.S., representing a nearly 30% market share.
Operating margins were the best in over 4 years at 22%, and indicative of the significant operating leverage we've been steadily building into this business. This was clearly an outstanding quarter. Today's results are the product of the strong platforms we have built in the card processing and adjacent businesses that leveraged our core processing competencies and unique sales organization. Our progress and success has been a joint effort of many loyal and dedicated team members. As our revenue staff and market penetration have grown, our management structure has been effective at adapting to our most pressing needs. Nevertheless, considering the significant opportunities in front of us, we have been reevaluating how we can expand, strengthen and better organize our leadership to capitalize on the growth opportunities we see emerging in our core and adjacent markets.As we looked at our organizational structure, it became clear, that to capitalize on these opportunities and to continue our success in the payments arena, we needed to add to a senior management team that has become stretched to its limits. We started a process to look at our organization and what we needed to do to best position ourselves to expand our presence and increase our market share, both horizontally and vertically, within this expanding and evermore complex industry. In recent years, we have promoted Bob Baldwin to President, added Maria Rueda, as our Chief Financial Officer, and Heidi Goff, as our Chief Marketing Officer. This past quarter, we've bolstered our executive leadership team with 4 new positions, designed to further expand Heartland's portfolio of merchants, products and services within key industries, and to extend the company's growth track record. We are committed to driving greater growth and profitability, and these executives will play extremely important roles in the company's future success. Each brings a breadth of skills and vast experiences that will help lead Heartland through the next stage of our development, so that we can become a multi-billion dollar company. Read the rest of this transcript for free on seekingalpha.com