TMNG Global Reports Third Quarter 2013 Financial Results

TMNG Global Reports Third Quarter 2013 Financial Results

OVERLAND PARK, Kan., Nov. 11, 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 third quarter
ended September 28, 2013.

"Our third quarter results, including year-over-year revenue growth and modest
GAAP and non-GAAP net income, demonstrate our steady progress in executing on
the three pillars of our strategic plan to return TMNG to sustainable
profitability," said Donald Klumb, CEO of TMNG Global. "We are making inroads
in evolving our consulting and technical solutions offerings, including our
first commercial 'big data' contract, which are built upon our proprietary
Ascertain software platform. We are prudently investing in expanding our
software offerings, while utilizing our extensive industry and client
knowledge to ensure our solutions deliver differentiated value for our
clients. Finally, we are nearing completion of an arrangement with a strategic
alliance partner which relates to an M2M big data solution, which we currently
expect to finalize in the fourth quarter. We are confident that our strategy
is the right one to position TMNG for the future. In addition, we have
remained focused on our cost structure and our balance sheet remains solid,
with a healthy cash position of $12.3 million and working capital of $18.2
million."

Financial Results for the Thirteen Weeks Ended September 28, 2013

Revenues in the third quarter of 2013 were $13.4 million, up 5.2% from $12.7
million in the third quarter of 2012 and down from $14.0 million in the second
quarter of 2013. During the third quarter of 2013, we deferred approximately
$270,000 in implementation costs and all associated revenues on a "big data"
managed service contract projected to launch late in the fourth quarter.
During the quarter, TMNG's gross margin was 37.7%, compared with 38.6% in the
third quarter of 2012 and 38.6% in the second quarter of 2013.

Selling, general and administrative expenses were $5.0 million in the third
quarter of 2013, compared to $4.7 million in the third quarter of 2012 and
$5.9 million in the second quarter of 2013. Selling, general and
administrative expenses for the second and third quarters of 2013 both include
$234,000 in non-cash share-based compensation expense.

TMNG Global reported net income of $30,000 on a GAAP basis, or breakeven per
diluted share for the third quarter of 2013, compared to net income of $0.1
million or $0.02 per diluted share in the third quarter of 2012, and net loss
of ($0.5) million or ($0.06) per diluted share for the second quarter of 2013.
After adjusting for the after tax impact of depreciation and amortization
expense and non-cash share-based compensation expense, non-GAAP adjusted net
income was $0.5 million, or $0.06 per diluted share, for the third quarter of
2013. The comparable non-GAAP adjusted net income was $0.4 million, or $0.05
per diluted share, for the third quarter of fiscal 2012 and breakeven for the
second quarter of 2013.

Financial Results for the Thirty-Nine Weeks Ended September 28, 2013

For the thirty-nine weeks ended September 28, 2013, revenues were $41.4
million, compared with $40.1 million in the comparable period of fiscal year
2012. TMNG Global's gross margin was 37.4% during the thirty-nine weeks ended
September 28, 2013, compared with 37.6% in the comparable period of fiscal
year 2012.

Selling, general and administrative expenses were $16.0 million during the
thirty-nine weeks ended September 28, 2013, compared to $16.4 million in the
comparable period of fiscal year 2012. Current year expense includes $532,000
of non-cash share based compensation expense.

Net loss for the thirty-nine weeks ended September 28, 2013 was ($0.6) million
or ($0.08) per diluted share, compared with a net loss of ($1.5) million or
($0.20) per diluted share in the comparable period of fiscal year 2012. After
adjusting for the after tax impact of depreciation and amortization expense
and non-cash share-based compensation expense, non-GAAP adjusted net income
was approximately $0.5 million, or $0.07 per diluted share, for the
thirty-nine weeks ended September 28, 2013. The comparable non-GAAP adjusted
net loss for the thirty-nine weeks ended September 29, 2012 was ($0.8) million
or ($0.11) per diluted share.

In addition to reporting net income (loss) and net income (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 Income
(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
income (loss) and net income (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
third 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 10035705, through
November 14, 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.

The TMNG Global logo 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, our ability
to successfully complete and implement the proposed strategic partnership;
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 Form 10-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    Thirty-nine Weeks Ended
                              September 28, September September September 29,
                                             29,       28,
                              2013          2012      2013      2012
                                                             
Revenues                       $13,393     $12,733 $41,440 $40,077
                                                             
Cost of services               8,350         7,814     25,940    25,018
                                                             
Gross profit                   5,043         4,919     15,500    15,059
                                                             
Selling, general and
administrative expenses
(includes non-cash share-based
compensation expense of $234
and $3 for the thirteen weeks
ended September 28, 2013 and   4,994         4,748     16,023    16,429
September 29, 2012,
respectively and $532 and $10
for the thirty-nine weeks
ended September 28, 2013 and
September 29, 2012,
respectively)
                                                             
Income (loss) from operations  49            171       (523)     (1,370)
Other income                   1             1         3         8
Income (loss) before income    50            172       (520)     (1,362)
taxes
Income tax provision           (20)          (30)      (59)      (90)
Net income (loss)              $30         $142    $(579)  $(1,452)
                                                             
Net income (loss) per common                                  
share:
Basic and diluted              $0.00       $0.02   $(0.08) $(0.20)
                                                             
Weighted average shares used
in calculation of net income                                  
(loss) per common share
Basic                          7,130         7,104     7,124     7,100
Diluted                        7,216         7,107     7,124     7,100




THE MANAGEMENT NETWORK GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
                                                          
                                                          
                                             September 28, December 29,
                                             2013          2012
ASSETS                                                     
CURRENT ASSETS:                                            
Cash and cash equivalents                     $12,302     $12,177
Accounts receivable, net                      12,267        12,762
Prepaid and other current assets              891           658
Total current assets                          25,460        25,597
                                                          
NONCURRENT ASSETS:                                         
Property and equipment, net                   1,280         1,355
Goodwill                                      8,133         8,160
Other noncurrent assets                       248           204
Total Assets                                  $35,121     $35,316
                                                          
LIABILITIES AND STOCKHOLDERS' EQUITY                       
CURRENT LIABILITIES:                                       
Trade accounts payable                        $1,689      $975
Accrued payroll, bonuses and related expenses 3,395         4,003
Deferred revenue                              543           605
Other accrued liabilities                     1,598         1,809
Total current liabilities                     7,225         7,392
                                                          
NONCURRENT LIABILITIES:                                    
Deferred income tax liabilities               531           472
Other noncurrent liabilities                  382           441
Total noncurrent liabilities                  913           913
                                                          
Total stockholders' equity                    26,983        27,011
Total Liabilities and Stockholders' Equity    $35,121     $35,316




THE MANAGEMENT NETWORK GROUP, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP ADJUSTED NET INCOME
(LOSS)
(unaudited)
(in thousands, except per share data)
                                                             
                          Thirteen Weeks Ended        Thirty-nine Weeks Ended
                          September 28, September 29, September September 29,
                                                       28,
                          2013          2012          2013      2012
                                                             
Reconciliation of GAAP net income (loss)                       
to non-GAAP adjusted net income (loss):
GAAP net income (loss)     $30         $142        $(579)  $(1,452)
                                                             
Depreciation and           168          181          503      589
amortization
Non-cash share based       235          3            533      10
compensation expense
Tax effect of applicable   20           30           59       90
non-GAAP adjustments ^ 1
Adjustments to GAAP net    423          214          1,095    689
income (loss)
                                                             
Non-GAAP adjusted net      $453        $356        $516    $(763)
income (loss)
                                                             
                                                             
Reconciliation of GAAP net
income (loss) per diluted
common share to non-GAAP                                      
adjusted net income (loss)
per diluted common share:
GAAP net income (loss) per $0.00       $0.02       $(0.08) $(0.20)
diluted common share
                                                             
Depreciation and           0.03         0.03         0.07     0.08
amortization
Non-cash share based       0.03         0.00         0.07     0.00
compensation expense
Tax effect of applicable   0.00         0.00         0.01     0.01
non-GAAP adjustments ^ 1
Adjustments to GAAP net
income (loss) per diluted  0.06         0.03         0.15     0.09
common share
                                                             
Non-GAAP adjusted net
income (loss) per diluted  $0.06       $0.05       $0.07   $(0.11)
common share
                                                             
Weighted average shares
used in calculation of
Non-GAAP adjusted net      7,216         7,107         7,189     7,100
income (loss) per diluted
common share
                                                             
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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