TMNG Global Reports First Quarter 2013 Financial Results

TMNG Global Reports First Quarter 2013 Financial Results

OVERLAND PARK, Kan., May 9, 2013 (GLOBE NEWSWIRE) -- TMNG Global
(Nasdaq:TMNG), a premier provider of professional services and technical
solutions to the global leaders in the communications, digital media, and
technology industries, reported financial results for its 2013 first quarter
ended March 30, 2013.

"In the first quarter of 2013, we delivered the first stages of revenue growth
and overall results aligned with our expectations given the seasonality of
some personnel-related costs. More importantly, our success in 2013 will be
measured by how effectively we innovate and evolve our model to deliver
sustainable, profitable growth," said Donald Klumb, CEO of TMNG Global. "We
are focused on executing our strategic plan for growth, which includes
enhancing relationships with key customers, advancing alliances with strategic
business partners, and expanding our technical solution offerings,
particularly around the Ascertain software platform. As we pursue these growth
opportunities, we are continuing to carefully manage our expenses and our
balance sheet while emphasizing deeper relationships with our largest
clients."

Financial Results for the Thirteen Weeks Ended March 30, 2013

Revenues in the first quarter of 2013 were $14.0 million, up from $13.8
million in the first quarter of 2012 and $12.9 million in the fourth quarter
of 2012. During the quarter, TMNG's gross margin was 36.0%, compared with
36.8% in the first quarter of 2012 and 38.7% in the fourth quarter of 2012.

Selling, general and administrative expenses were $5.2 million in the first
quarter of 2013, compared to $6.3 million in the first quarter of 2012 and
$4.7 million in the fourth quarter of 2012. The year-over-year decline
reflects significant reductions in the Company's selling, general and
administrative expense structure that were implemented during 2012. The
increase in selling, general and administrative costs in the first quarter of
2013 from the fourth quarter of 2012 reflects normal, seasonal cost variances.

TMNG Global reported a net loss of ($0.2) million on a GAAP basis, or ($0.02)
per diluted share for the first quarter of 2013, compared to a net loss of
($1.2) million or ($0.17) per diluted share in the first quarter of 2012, and
net income of $0.3 million or $0.04 per diluted share for the fourth quarter
of 2012. After adjusting for the after tax impact of depreciation and
amortization expense and share-based compensation expense, non-GAAP adjusted
net income was $0.1 million, or $0.01 per diluted share during the first
quarter of 2013. The comparable non-GAAP adjusted net loss was ($1.0) million,
or ($0.13) per diluted share, for the first quarter of fiscal 2012.

In addition to reporting net loss and net loss per share on a GAAP basis, this
press release contains certain non-GAAP adjustments which are described in the
schedule entitled "Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net
Income (Loss)" that accompanies this press release. In making these non-GAAP
adjustments, the Company took into account certain non-cash expenses and
benefits, including tax effects as applicable, and the impact of certain items
that are generally not expected to be on-going in nature or that are unrelated
to the Company's core operations. Management believes non-GAAP financial
information provides a useful basis for evaluating underlying business
performance, but should not be considered in isolation and is not a substitute
for GAAP financial information. The Company believes that providing such
adjusted results allows investors and other users of the Company's financial
statements to better understand TMNG Global's comparative operating
performance for the periods presented.

TMNG Global's management uses the non-GAAP financial measure in its own
evaluation of the Company's performance, particularly when comparing
performance to the prior year's period and on a sequential basis. TMNG
Global's non-GAAP measure may differ from similar measures used by other
companies, even if similar terms are used to identify such measures. Although
TMNG Global's management believes the non-GAAP financial measure is useful in
evaluating the performance of its business, TMNG Global acknowledges that
items excluded from such measure have a material impact on the Company's net
loss and net loss per share calculated in accordance with GAAP. Therefore,
management uses non-GAAP measures in conjunction with GAAP results. Investors
and other users of our financial information should also consider the above
factors when evaluating TMNG Global's results.

Conference Call

The Company will host a conference call at 5:00 p.m. ET today to discuss 2013
first quarter results. The call may also include discussion of company
developments, forward-looking information and other material information about
business and financial matters. Investors can access the conference call via a
live webcast on the Company's website, www.tmng.com, or by dialing
877-317-6789 in the United States or 412-317-6789 from international locations
and referencing the TMNG Global call. A replay of the conference call will be
archived on the Company's website for 90 days. Additionally, a replay of the
call will be available by dialing 877-344-7529, pass code 10027613, through
May 16, 2013.

About TMNG Global

TMNG Global (Nasdaq:TMNG) is a premier provider of professional services and
technical solutions to the global leaders in the communications, digital
media, and technology industries. TMNG Global and its divisions, CSMG and
Cartesian, and a team of approximately 500 experts, provide strategy,
operations and technology consulting services and technical solutions to more
than 1,200 communications clients worldwide. The company is headquartered in
Overland Park, Kansas, with offices in Boston, London, New Jersey, and
Washington, D.C. For more information about the Company and its services,
visit www.tmng.com.

TheTMNG Globallogo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6089

Cautionary Statement Regarding Forward Looking Information

This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995.In particular, any
statements that do not relate to historical or current facts constitute
forward-looking statements, including any statements contained herein
regarding expectations with respect to the Company's future business,
financial condition and results of operations. Forward-looking statements are
subject to known and unknown risks, uncertainties, and contingencies, many of
which are beyond the Company's control, which may cause actual results,
performance, or achievements to differ materially from those projected or
implied in such forward-looking statements. Factors that might affect actual
results, performance, or achievements include, among other things, conditions
in the telecommunications industry, overall economic and business conditions
(including the current economic slowdown), the demand for the Company's
services (including the slowing of client decisions on proposals and project
opportunities along with scope reduction of existing projects), the level of
cash and non-cash expenditures incurred by the Company, technological advances
and competitive factors in the markets in which the Company competes, and the
factors described in this press release and in The Management Network Group's
filings with the Securities and Exchange Commission, including the risks
described in its periodic reports filed with the SEC, including, but not
limited to, "Cautionary Statement Regarding Forward Looking Information" under
Part I of its Annual Report on Form10-K for the fiscal year ended December
29, 2012 and subsequent periodic reports containing updated disclosures of
such risks. These filings are available at the SEC's web site at www.sec.gov.
Any forward-looking statements made in this release speak only as of the date
of this release. TMNG Global does not intend to update these forward-looking
statements and undertakes no duty to any person to provide any such update
under any circumstances.

THE MANAGEMENT NETWORK GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
                                                                  
                                                                  
                                                         Thirteen Weeks Ended
                                                         March 30, March 31,
                                                         2013      2012
                                                                  
Revenues                                                  $14,010 $13,846
Cost of services                                          8,969     8,755
Gross Profit                                              5,041     5,091
                                                                  
Selling, general and administrative expenses              5,179     6,249
Loss from operations                                      (138)     (1,158)
Other income                                              1         2
Loss before income taxes                                  (137)     (1,156)
Income tax provision                                      (16)      (30)
Net loss                                                  $(153)  $(1,186)
                                                                  
Loss per common share:                                             
Basic and diluted                                         $(0.02) $(0.17)
                                                                  
                                                                  
Weighted average shares used in calculation of net loss   7,118     7,094
per basic and diluted common share


THE MANAGEMENT NETWORK GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
                                                      
                                                      
                                             March 30, December 29,
                                             2013      2012
ASSETS                                                 
CURRENT ASSETS:                                        
Cash and cash equivalents                     $11,092 $12,177
Accounts receivable, net                      12,132    12,762
Prepaid and other current assets              901       658
Total current assets                          24,125    25,597
                                                      
NONCURRENT ASSETS:                                     
Property and equipment, net                   1,372     1,355
Goodwill                                      7,903     8,160
Other noncurrent assets                       197       204
Total Assets                                  $33,597 $35,316
                                                      
LIABILITIES AND STOCKHOLDERS' EQUITY                   
CURRENT LIABILITIES:                                   
Trade accounts payable                        $1,458  $975
Accrued payroll, bonuses and related expenses 2,397     4,003
Deferred revenue                              581       605
Other accrued liabilities                     1,784     1,809
Total current liabilities                     6,220     7,392
                                                      
NONCURRENT LIABILITIES:                                
Deferred income tax liabilities               488       472
Other noncurrent liabilities                  475       441
Total noncurrent liabilities                  963       913
                                                      
Total stockholders' equity                    26,414    27,011
Total Liabilities and Stockholders' Equity    $33,597 $35,316


THE MANAGEMENT NETWORK GROUP, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED NET INCOME (LOSS)
(In thousands, except per share data)
(unaudited)
                                                                  
                                                                  
                                                         Thirteen Weeks Ended
                                                         March 30, March 31,
                                                         2013      2012
                                                                  
Reconciliation of GAAP net loss to non-GAAP adjusted net           
income (loss):
GAAP net loss                                             $(153)  $(1,186)
                                                                  
Depreciation and amortization                             165      200
Non-cash share based compensation expense                 64       3
Tax effect of applicable non-GAAP adjustments ^1          16       30
Adjustments to GAAP net loss                              245      233
                                                                  
Non-GAAP adjusted net income (loss)                       $92     $(953)
                                                                  
                                                                  
Reconciliation of GAAP net loss per basic and diluted
common share to non-GAAP adjusted net income (loss) per            
basic and diluted common share:
GAAP net loss per basic and diluted common share          $(0.02) $(0.17)
                                                                  
                                                                  
Depreciation and amortization                             0.02     0.03
Non-cash share based compensation expense                 0.01     0.00
Tax effect of applicable non-GAAP adjustments^1           0.00     0.01
Adjustments to GAAP net loss per basic and diluted common 0.03     0.04
share
                                                                  
Non-GAAP adjusted net income (loss) per basic and diluted $0.01   $(0.13)
common share
                                                                  
Weighted average shares used in calculation of Non-GAAP            
adjusted net income (loss) per common share
Basic                                                     7,118     7,094
                                                                  
Diluted                                                   7,164     7,094

Footnote 1: The Company calculated the tax effect of non-GAAP adjustments by
applying an applicable estimated jurisdictional tax rate to each specific
non-GAAP item after consideration of the Company's valuation allowance.


CONTACT: Brainerd Communicators
         Ray Yeung (Media)
         yeung@braincomm.com

         Corey Kinger (Investors)
         kinger@braincomm.com
         212.986.6667

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