TMNG Global (Nasdaq:TMNGD), a leading provider of management
consulting and software solution services to the global
communications, media and entertainment industries, reported
financial results for its 2009 fourth quarter and full year ended
January 2, 2010. All per share amounts have been adjusted to
reflect the 1-for-5 reverse stock split of the Company's common
stock effective February 7, 2010.
Revenues in the fourth quarter of 2009 (a thirteen week quarter)
were $17.1 million, up from $14.4 million in the 2008 fourth
quarter (a fourteen week quarter) and $16.8 million in the 2009
third quarter. The positive revenue comparisons were driven by
the Company's continued execution on its strategy of deepening
penetration of larger customer organizations. During the
quarter, TMNG's gross margin was 42.3%, compared with 39.8% in the
fourth quarter of 2008 and 40.8% in the third quarter of 2009.
TMNG Global reported a net loss of ($0.2) million on a GAAP
basis, or ($0.03) per diluted share for the fourth quarter of 2009,
compared to a prior-year net loss of ($5.0) million, or ($0.72) per
diluted share. The 2008 fourth quarter included a non-cash
intangible asset impairment charge of $4.3 million. After adjusting
for the after tax impact of non-cash charges, including the
impairment charge, net realized gains or losses on auction rate
securities, depreciation and amortization expense and share-based
compensation expense, non-GAAP adjusted net income was $0.8
million, or $0.12 per diluted share, during the fourth quarter of
2009. The comparable non-GAAP adjusted net income for the
fourth quarter of fiscal 2008 was $0.7 million, or $0.10 per
diluted share.
"TMNG closed 2009 with performance consistent with our
expectations and directly resulting from the successful execution
of our strategy to deepen and widen relationships with top revenue
generating clients," said Richard Nespola, TMNG Global Chairman and
CEO. "Given the challenging environment faced by both TMNG and our
customers throughout most of 2009, the sequential quarterly
improvement we saw over the last nine months, capped by positive
non-GAAP adjusted net income for the fourth quarter and full year,
gives us positive momentum heading into 2010. We believe that
larger customers have been expanding capital investment for several
reasons, including: to manage increasing growth in bandwidth
demand, to design and construct next generation networks, to build
business models around new consumer products, and to introduce new
services such as wireless offerings by cable operators. Through our
Strategy group, our operational consultant capabilities and our
software toolsets, we are positioned to benefit from all of these
activities and we see solid opportunities for revenue and profit
improvement in 2010."
Financial Results for the Fifty-Two Weeks Ended January
2, 2010
For the fifty-two weeks ended January 2, 2010, revenues were
$65.0 million, compared with $74.0 million for the fifty-three week
period ended January 3, 2009. TMNG Global's gross margin was 41.4%
during the fifty-two weeks ended January 2, 2010, compared with
44.6% for the fifty-three week period ended January 3,
2009.
Net loss for the fifty-two weeks ended January 2, 2010 was
($3.2) million or ($0.46) per diluted share, compared with a net
loss of ($14.8) million or ($2.09) per diluted share for the
fifty-three week period ended January 3, 2009. GAAP results
included $14.5 million in goodwill and intangible asset impairment
charges in 2008. Non-GAAP adjusted net income, excluding the after
tax impact of non-cash expenses, including the impairment charges,
net realized gains or losses on auction rate securities,
depreciation and amortization expense, and share-based compensation
expense, was approximately $0.7 million, or $0.10 per diluted
share, for the fifty-two weeks ended January 2, 2010. The
comparable non-GAAP adjusted net income for the fifty-three week
period ended January 3, 2009 was approximately $6.1 million, or
$0.87 per diluted share.
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"
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. Management believes the exclusion of these
items provides a useful basis for evaluating underlying business
performance, but should not be considered in isolation and is not
in accordance with, or a substitute for, evaluating Company
performance utilizing 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 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 2009 fourth quarter and full year results. Investors can
access the conference call via a live webcast on the Company's
website, www.tmng.com, or by dialing 800-860-2442 in the United
States or 412-858-4600 from international locations and referencing
the TMNG Global call. A replay of the conference call will be
archived on the Company's website for one week. Additionally, a
replay of the call will be available by dialing 877-344-7529, pass
code 437432, through March 4, 2010.
About TMNG Global
TMNG Global (Nasdaq:TMNGD) is a leading provider of professional
services to the converging communications industry. Its companies,
TMNG, CSMG, and Cartesian, and its base of over 600 consultants,
have provided strategy, management, and technical consulting, as
well as products and services, to more than 1200 communications
service providers, entertainment, media, and technology companies
and financial services firms worldwide. The company is
headquartered in Overland Park, Kansas, with offices in Boston,
Chicago, London, New Jersey, New York, Beijing, Shanghai and
Washington, D. C. For more information about TMNG Global, visit
www.tmng.com.
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, the ability of the
Company to successfully integrate recent acquisitions, conditions
in the telecommunications industry, overall economic and business
conditions (including the worsening of conditions in the credit
markets and in general economic conditions), 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 TMNG Global's
filings with the Securities and Exchange Commission, including the
risks described in TMNG Global's 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 January 3, 2009 and
subsequent periodic reports containing updated disclosures of such
risks. These filings are available at the SEC's web site at
www.sec.gov. 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
|
Fourteen
Weeks
Ended
|
Fifty-Two
Weeks
Ended
|
Fifty-Three
Weeks
Ended
|
|
January 2, 2010
|
January 3,
2009
|
January 2, 2010
|
January 3, 2009
|
Revenues
|
$ 17,119
|
$ 14,397
|
$ 64,953
|
$ 74,042
|
|
|
|
|
|
Cost of services (includes net non-cash
share-based compensation expense of $39 and $98 for the
thirteen weeks ended January 2, 2010 and the fourteen weeks
ended January 3, 2009, respectively, and $260 and $545 for the
fifty-two weeks ended January 2, 2010 and the fifty-three
weeks ended January 3, 2009, respectively)
|
9,881
|
8,670
|
38,036
|
41,055
|
|
|
|
|
|
Gross Profit
|
7,238
|
5,727
|
26,917
|
32,987
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
Selling, general and administrative (includes net
non-cash share-based compensation expense of $95 and $295 for
the thirteen weeks ended January 2, 2010 and the
fourteen weeks ended January 3, 2009,
respectively, and $598 and $1,272 for the
fifty-two weeks ended January 2, 2010 and the
fifty-three weeks ended January 3, 2009, respectively)
|
6,999
|
6,251
|
28,497
|
30,124
|
Intangible asset amortization
|
504
|
537
|
1,975
|
3,916
|
Goodwill, intangible and long-lived asset impairment
|
|
4,286
|
|
14,451
|
Total operating expenses
|
7,503
|
11,074
|
30,472
|
48,491
|
Loss from operations
|
(265)
|
(5,347)
|
(3,555)
|
(15,504)
|
Other income (expense):
|
|
|
|
|
Interest income
|
71
|
166
|
259
|
916
|
Interest expense
|
(13)
|
|
(55)
|
|
Other income (expense)
|
184
|
(267)
|
335
|
(243)
|
Total other income (expense)
|
242
|
(101)
|
539
|
673
|
Loss before income tax provision
|
(23)
|
(5,448)
|
(3,016)
|
(14,831)
|
Income tax (provision) benefit
|
(158)
|
450
|
(226)
|
6
|
Net loss
|
$ (181)
|
$ (4,998)
|
$ (3,242)
|
$ (14,825)
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
Basic and diluted
|
$ (0.03)
|
$ (0.72)
|
$ (0.46)
|
$ (2.09)
|
|
|
|
|
|
Weighted average shares used in calculation of net loss per
common share:
|
|
|
|
|
Basic
|
7,022
|
6,947
|
6,986
|
7,089
|
Diluted
|
7,022
|
6,947
|
6,986
|
7,089
|
THE MANAGEMENT NETWORK GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
|
|
|
|
|
January 2,
|
January 3,
|
|
2010
|
2009
|
ASSETS
|
|
|
CURRENT ASSETS:
|
|
|
Cash and cash equivalents
|
$ 6,301
|
$ 5,956
|
Short-term investments
|
5,444
|
|
Receivables:
|
|
|
Accounts receivable
|
11,991
|
8,247
|
Accounts receivable — unbilled
|
4,174
|
4,540
|
|
16,165
|
12,787
|
Less: Allowance for doubtful accounts
|
(357)
|
(379)
|
Net receivables
|
15,808
|
12,408
|
Prepaid and other current assets
|
1,206
|
1,653
|
Total current assets
|
28,759
|
20,017
|
|
|
|
NONCURRENT ASSETS:
|
|
|
Property and equipment, net
|
1,955
|
1,801
|
Goodwill
|
7,772
|
6,240
|
Identifiable intangible assets, net
|
2,516
|
4,842
|
Noncurrent investments
|
6,852
|
13,404
|
Other noncurrent assets
|
397
|
410
|
Total Assets
|
$ 48,251
|
$ 46,714
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
CURRENT LIABILITIES:
|
|
|
Trade accounts payable
|
$ 1,118
|
$ 1,138
|
Current borrowings
|
2,800
|
|
Accrued payroll, bonuses and related
expenses
|
5,354
|
4,053
|
Other accrued liabilities
|
1,433
|
3,010
|
Income tax liabilities
|
|
|
Deferred revenue
|
1,023
|
476
|
Accrued contingent consideration
|
|
161
|
Unfavorable and other contractual obligations
|
706
|
697
|
Total current liabilities
|
12,434
|
9,535
|
|
|
|
NONCURRENT LIABILITIES:
|
|
|
Deferred income tax liabilities
|
118
|
115
|
Unfavorable and other contractual obligations
|
546
|
1,062
|
Noncurrent borrowings
|
|
1,485
|
Other liabilities
|
1,119
|
891
|
Total noncurrent liabilities
|
1,783
|
3,553
|
|
|
|
Total stockholders' equity
|
34,034
|
33,626
|
Total Liabilities and Stockholders' Equity
|
$ 48,251
|
$ 46,714
|
THE MANAGEMENT NETWORK GROUP, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED NET
INCOME
(unaudited)
(in thousands, except per share data)
|
|
|
|
|
|
|
Thirteen
Weeks
Ended
|
Fourteen
Weeks Ended
|
Fifty-Two
Weeks Ended
|
Fifty-Three
Weeks Ended
|
|
January 2,
2010
|
January 3,
2009
|
January 2,
2010
|
January 3,
2009
|
|
|
|
|
|
Reconciliation of GAAP net loss to
non-GAAP adjusted net income:
|
|
|
|
|
GAAP net loss
|
$ (181)
|
$ (4,998)
|
$ (3,242)
|
$ (14,825)
|
|
|
|
|
|
Goodwill, intangible and long-lived asset impairment
|
--
|
4,286
|
--
|
14,451
|
Realized (gain) loss on auction rate securities
|
(102)
|
280
|
(224)
|
280
|
Depreciation and amortization
|
850
|
966
|
3,379
|
5,385
|
Non-cash share based compensation expense
|
134
|
393
|
858
|
1,817
|
Tax effect of applicable non-GAAP adjustments
|
118
|
(248)
|
(82)
|
(965)
|
Adjustments to GAAP net loss
|
1,000
|
5,677
|
3,931
|
20,968
|
|
|
|
|
|
Non-GAAP adjusted net income
|
$ 819
|
$ 679
|
$ 689
|
$ 6,143
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net loss per diluted common
share to non-GAAP adjusted net income per diluted common
share:
|
|
|
|
|
GAAP net loss per diluted common share
|
$ (0.03)
|
$ (0.72)
|
$ (0.46)
|
$ (2.09)
|
|
|
|
|
|
Goodwill, intangible and long-lived asset impairment
|
--
|
0.62
|
--
|
2.04
|
Realized (gain) loss on auction rate securities
|
(0.01)
|
0.04
|
(0.03)
|
0.04
|
Depreciation and amortization
|
0.12
|
0.14
|
0.48
|
0.76
|
Non-cash share based compensation expense
|
0.02
|
0.06
|
0.12
|
0.26
|
Tax effect of applicable non-GAAP adjustments
|
0.02
|
(0.04)
|
(0.01)
|
(0.14)
|
Adjustments to GAAP net loss per diluted common share
|
0.15
|
0.82
|
0.56
|
2.96
|
|
|
|
|
|
Non-GAAP adjusted net income per diluted common
share
|
$ 0.12
|
$ 0.10
|
$ 0.10
|
$ 0.87
|
|
|
|
|
|
Weighted average shares used in calculation of diluted
net loss per common share
|
7,022
|
6,947
|
6,986
|
7,089
|
CONTACT: Brainerd Communicators
Media
Ray Yeung
yeung@braincomm.com
Jo Anne Barrameda
barrameda@braincomm.com
Investors
Corey Kinger
212.986.6667
kinger@braincomm.com
The Management Network Grp. (MM) (NASDAQ:TMNGD)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
The Management Network Grp. (MM) (NASDAQ:TMNGD)
Historical Stock Chart
Von Jun 2023 bis Jun 2024