UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
The Management Network Group, Inc.
(Name of Issuer)
Common Stock, par value $.005 per share
(Title of Class of Securities)
561693201
(CUSIP Number)
Mill Road Capital, L.P.
Attn: Thomas E. Lynch
382 Greenwich Avenue
Suite One
Greenwich, CT 06830
203-987-3500
With a copy to:
Peter M. Rosenblum, Esq.
Foley Hoag LLP
155 Seaport Blvd.
Boston, MA 02210
617-832-1151
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
March 28, 2014
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ¨
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are sent.
* | The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
13D
CUSIP No. 561693201 | Page 2 of 10 Pages |
1. | Names of reporting persons.
Thomas E. Lynch | |||||
2. | Check the appropriate box if a member of a group (see instructions) (a) ¨ (b) ¨
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3. | SEC use only
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4. | Source of funds (see instructions)
AF | |||||
5. | Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e) ¨
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6. | Citizenship or place of organization
USA | |||||
Number of shares beneficially owned by each reporting person with
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7. | Sole voting power
| ||||
8. | Shared voting power
589,507 | |||||
9. | Sole dispositive power
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10. | Shared dispositive power
589,507 | |||||
11. |
Aggregate amount beneficially owned by each reporting person
589,507 | |||||
12. | Check if the aggregate amount in Row (11) excludes certain shares (see instructions) ¨
| |||||
13. | Percent of class represented by amount in Row (11)
6.7% | |||||
14. | Type of reporting person (see instructions)
HC; IN |
13D
CUSIP No. 561693201 | Page 3 of 10 Pages |
1. | Names of reporting persons.
Scott P. Scharfman | |||||
2. | Check the appropriate box if a member of a group (see instructions) (a) ¨ (b) ¨
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3. | SEC use only
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4. | Source of funds (see instructions)
AF | |||||
5. | Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e) ¨
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6. | Citizenship or place of organization
USA | |||||
Number of shares beneficially owned by each reporting person with
|
7. | Sole voting power
| ||||
8. | Shared voting power
589,507 | |||||
9. | Sole dispositive power
| |||||
10. | Shared dispositive power
589,507 | |||||
11. |
Aggregate amount beneficially owned by each reporting person
589,507 | |||||
12. | Check if the aggregate amount in Row (11) excludes certain shares (see instructions) ¨
| |||||
13. | Percent of class represented by amount in Row (11)
6.7% | |||||
14. | Type of reporting person (see instructions)
HC; IN |
13D
CUSIP No. 561693201 | Page 4 of 10 Pages |
1. | Names of reporting persons
Mill Road Capital GP LLC | |||||
2. | Check the appropriate box if a member of a group (see instructions) (a) ¨ (b) ¨
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3. | SEC use only
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4. | Source of funds (see instructions)
AF | |||||
5. | Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e) ¨
| |||||
6. | Citizenship or place of organization
Delaware | |||||
Number of shares beneficially owned by each reporting person with
|
7. | Sole voting power
589,507 | ||||
8. | Shared voting power
| |||||
9. | Sole dispositive power
589,507 | |||||
10. | Shared dispositive power
| |||||
11. |
Aggregate amount beneficially owned by each reporting person
589,507 | |||||
12. | Check if the aggregate amount in Row (11) excludes certain shares (see instructions) ¨
| |||||
13. | Percent of class represented by amount in Row (11)
6.7% | |||||
14. | Type of reporting person (see instructions)
HC; OO |
13D
CUSIP No. 561693201 | Page 5 of 10 Pages |
1. | Names of reporting persons.
Mill Road Capital, L.P. | |||||
2. | Check the appropriate box if a member of a group (see instructions) (a) ¨ (b) ¨
| |||||
3. | SEC use only
| |||||
4. | Source of funds (see instructions)
WC | |||||
5. | Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e) ¨
| |||||
6. | Citizenship or place of organization
Delaware | |||||
Number of shares beneficially owned by each reporting person with
|
7. | Sole voting power
589,507 | ||||
8. | Shared voting power
| |||||
9. | Sole dispositive power
589,507 | |||||
10. | Shared dispositive power
| |||||
11. |
Aggregate amount beneficially owned by each reporting person
589,507 | |||||
12. | Check if the aggregate amount in Row (11) excludes certain shares (see instructions) ¨
| |||||
13. | Percent of class represented by amount in Row (11)
6.7% | |||||
14. | Type of reporting person (see instructions)
PN |
CUSIP No. 561693201 | Page 6 of 10 Pages |
Introduction
This Amendment No. 1 to the joint statement on Schedule 13D with respect to the Common Stock, par value $0.005 per share (the Common Stock), of The Management Network Group, Inc., a Delaware corporation (the Issuer), filed by Mill Road Capital, L.P., a Delaware limited partnership, Mill Road Capital GP LLC, a Delaware limited liability company, Thomas E. Lynch, Scott P. Scharfman and Charles M. B Goldman on August 17, 2009 (such filing, as amended and restated herein, the Schedule 13D), amends and restates the Schedule 13D in its entirety, as further set forth below.
Item 1. | Security and Issuer |
This joint statement on Schedule 13D relates to the Common Stock. The address of the Issuers principal executive offices is 7300 College Boulevard, Suite 302, Overland Park, Kansas 66210.
Item 2. | Identity and Background |
(a) This joint statement on Schedule 13D is being filed by Thomas E. Lynch, Scott P. Scharfman, Mill Road Capital GP LLC, a Delaware limited liability company (the GP), and Mill Road Capital, L.P., a Delaware limited partnership (the Fund). Each of the foregoing is referred to in this Schedule 13D as a Reporting Person and, collectively, as the Reporting Persons. Messrs. Lynch and Scharfman, Charles M. B. Goldman and Justin C. Jacobs are the management committee directors of the GP and, in this capacity, are referred to in this Schedule 13D as the Managers.
The Reporting Persons have entered into a Joint Filing Agreement, a copy of which is filed as Exhibit 1 to this Schedule 13D, pursuant to which they have agreed to file this Schedule 13D jointly in accordance with Rule 13d-1(k) under the Exchange Act.
(b) The business address of each of the Managers, and the address of the principal business and the principal office of the GP and the Fund, is 382 Greenwich Avenue, Suite One, Greenwich, CT 06830.
(c) The principal business of the Fund is investing in securities. The principal business of the GP is acting as the sole general partner of the Fund. The present principal occupation or employment of each Manager is as a management committee director of the GP and of Mill Road Capital Management LLC, a Delaware limited liability company, which provides advisory and administrative services to the GP and is located at 382 Greenwich Avenue, Suite One, Greenwich, CT 06830.
(d) None of the Managers, the GP and the Fund has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).
(e) None of the Managers, the GP and the Fund was, during the last five years, a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and, as a result of such proceeding, was or is subject to a judgment, decree or final order (1) enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws, or (2) finding any violation with respect to such laws.
(f) Each of the Fund and the GP is organized under the laws of the state of Delaware. Each Manager is a citizen of the United States.
CUSIP No. 561693201 | Page 7 of 10 Pages |
Item 3. | Source and Amount of Funds or Other Consideration |
The Reporting Persons acquired beneficial ownership of an aggregate of 589,507 shares of Common Stock for $1,137,944.51 using working capital from the Fund and the proceeds of margin loans under margin loan facilities maintained in the ordinary course of business by the Fund with a broker on customary terms and conditions.
Item 4. | Purpose of Transaction |
The Reporting Persons acquired shares of the Common Stock based on their belief that the Common Stock represents an attractive investment opportunity, and such purchases have been made in the Reporting Persons ordinary course of business.
The Reporting Persons intend to review continuously their equity interest in the Issuer. Depending upon their evaluation of the factors described below, one or more of the Reporting Persons may from time to time purchase additional securities of the Issuer, dispose of all or a portion of the securities then held by such Reporting Persons, sell put options or covered call options, including covered call options that may be significantly in-the-money or that may cover a significant portion (including all) of the shares of Common Stock over which the Reporting Persons have beneficial ownership, or cease buying or selling such securities. Any such additional purchases or sales of securities of the Issuer may be in the open market, in privately negotiated transactions or otherwise.
The Reporting Persons may wish to engage in a constructive dialogue with officers, directors and other representatives of the Issuer, as well as the Issuers shareholders; topics of discussion may include, but are not limited to, the Issuers markets, operations, competitors, prospects, strategy, personnel, directors, ownership and capitalization. The Reporting Persons may also enter into confidentiality or similar agreements with the Issuer and, subject to such an agreement or otherwise, exchange information with the Issuer. The factors that the Reporting Persons may consider in evaluating their equity interest in the Issuers business include the following: (i) the Issuers business and prospects; (ii) the performance of the Common Stock and the availability of the Common Stock for purchase at particular price levels; (iii) the availability and nature of opportunities to dispose of the Reporting Persons interests; (iv) general economic conditions; (v) stock market conditions; (vi) other business and investment opportunities available to the Reporting Persons; and (vii) other plans and requirements of the Reporting Persons.
Depending on their assessment of the foregoing factors, the Reporting Persons may, from time to time, modify their present intention as stated in this Item 4.
Except as set forth above, the Reporting Persons intend to continuously review their options but do not have at this time any specific plans that would result in (a) the acquisition by any person of additional securities of the Issuer or the disposition of securities of the Issuer; (b) any extraordinary corporate transactions such as a merger, reorganization or liquidation involving the Issuer or any of its subsidiaries; (c) any sale or transfer of a material amount of the assets of the
CUSIP No. 561693201 | Page 8 of 10 Pages |
Issuer or of any of its subsidiaries; (d) any change in the present management or Board of Directors of the Issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the Issuers Board of Directors; (e) any material change in the present capitalization or dividend policy of the Issuer; (f) any other material change in the Issuers business or corporate structure; (g) any change in the Issuers charter or by-laws or instruments corresponding thereto or other actions that may impede the acquisition of control of the Issuer by any person; (h) the Common Stock being delisted from a national securities exchange or ceasing to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association; (i) causing a class of equity securities of the Issuer to become eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act; or (j) any action similar to any of those enumerated above.
Item 5. | Interest in Securities of the Issuer |
The percentages of beneficial ownership reported in this Item 5, and on each Reporting Persons cover page to this Schedule 13D, are based on a total of 8,762,530 shares of the Common Stock issued and outstanding as of March 21, 2014, as reported in the most recent annual report of the Issuer on Form 10-K for the fiscal year ended December 28, 2013. All of the share numbers reported below, and on each Reporting Persons cover page to this Schedule 13D, are as of April 7, 2014, unless otherwise indicated.
(a, b) The cover page to this Schedule 13D for each Reporting Person is incorporated by reference in its entirety into this Item 5(a, b). The Fund directly holds, and thus has sole voting and dispositive power over, 589,507 shares of Common Stock. The GP, as sole general partner of the Fund, also has the sole authority to vote (or direct the vote of), and to dispose (or direct the disposal) of, the shares of Common Stock, and each of Messrs. Lynch and Scharfman has the shared authority to vote (or direct the vote of), and to dispose (or direct the disposal) of, these shares of Common Stock on behalf of the GP. Messrs. Goldman and Jacobs do not have beneficial ownership of any shares of Common Stock.
Accordingly, each of the Reporting Persons beneficially owns 589,507 shares of Common Stock, or approximately 6.7% of the outstanding shares of Common Stock, and the Reporting Persons beneficially own, in the aggregate, 589,507 shares of Common Stock, or approximately 6.7% of the outstanding shares of Common Stock.
(c) No Reporting Person effected any transaction in shares of the Common Stock from February 3, 2014 (the date 60 days prior to the filing of this Amendment No. 1 to the Schedule 13D) to April 7, 2014.
(d) No person other than the Reporting Persons is known to have the right to receive or the power to direct the receipt of dividends from or the proceeds from the sale of shares of the Common Stock.
(e) Not applicable.
CUSIP No. 561693201 | Page 9 of 10 Pages |
Item 6. | Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer |
Except as otherwise described in this Schedule 13D, including the Exhibits attached hereto, there are no contracts, arrangements, understandings, or relationships (legal or otherwise) among the Reporting Persons, or between any Reporting Person(s) and any third party, with respect to any securities of the Issuer, including, but not limited to, those involving the transfer or voting any of the securities, finders fees, joint ventures, loan or option arrangements, put or calls, guarantees of profits, division of profits or losses, or the giving or withholding of proxies.
Item 7. | Material to be Filed as Exhibits |
Exhibit 1 | Joint Filing Agreement by and among Mill Road Capital, L.P., Mill Road Capital GP LLC, Thomas E. Lynch and Scott P. Scharfman dated as of April 4, 2014. | |
Exhibit 2 | Confirming Statement of Thomas E. Lynch dated April 4, 2014. | |
Exhibit 3 | Confirming Statement of Scott P. Scharfman dated April 4, 2014. |
[signature pages follow]
CUSIP No. 561693201 | Page 10 of 10 Pages |
Signature
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
DATE: | April 7, 2014 | |
MILL ROAD CAPITAL, L.P. |
By: | Mill Road Capital GP LLC, | |
its General Partner | ||
By: | /s/ Thomas E. Lynch | |
Thomas E. Lynch | ||
Management Committee Director and Chairman |
MILL ROAD CAPITAL GP LLC | ||
By: | /s/ Thomas E. Lynch | |
Thomas E. Lynch | ||
Management Committee Director and Chairman | ||
THOMAS E. LYNCH | ||
/s/ Thomas E. Lynch | ||
Thomas E. Lynch | ||
SCOTT P. SCHARFMAN | ||
/s/ Scott P. Scharfman | ||
Scott P. Scharfman |
CUSIP No. 561693201 | Page 1 of 1 Page |
Exhibit 1
JOINT FILING AGREEMENT
Pursuant to Rule 13d-1(k)(1) under the Securities Exchange Act of 1934, as amended (the Exchange Act), the undersigned hereby agree, as of April 4, 2014, that only one statement containing the information required by Schedule 13D under the Exchange Act, whether an initial such statement or any amendment thereto, need be filed with respect to the ownership by each of the undersigned of shares of Common Stock, $0.005 par value, of The Management Network Group, Inc., a Delaware corporation, and such statement to which this Joint Filing Agreement is attached as Exhibit 1 is, and any such amendment filed while this Joint Filing Agreement is in effect shall be, filed on behalf of each of the undersigned.
MILL ROAD CAPITAL, L.P. | ||
By: | Mill Road Capital GP LLC, | |
its general partner | ||
By: | /s/ Thomas E. Lynch | |
Thomas E. Lynch | ||
Management Committee Director and Chairman | ||
MILL ROAD CAPITAL GP LLC | ||
By: | /s/ Thomas E. Lynch | |
Thomas E. Lynch | ||
Management Committee Director and Chairman | ||
THOMAS E. LYNCH | ||
/s/ Thomas E. Lynch | ||
SCOTT P. SCHARFMAN | ||
/s/ Scott P. Scharfman |
CUSIP No. 561693201 | Page 1 of 1 Page |
Exhibit 2
CONFIRMING STATEMENT
This Statement confirms that the undersigned has authorized and designated Charles M. B. Goldman, Scott P. Scharfman and Justin C. Jacobs, each acting singly, to execute and file on the undersigneds behalf all Forms 3, 4 and 5 and Schedule 13D (including any amendments thereto or any joint filing agreements with respect thereto) that the undersigned may be required to file with the U.S. Securities and Exchange Commission as a result of the undersigneds ownership of or transactions in securities of The Management Network Group, Inc., a Delaware corporation. The authority of Charles M. B. Goldman, Scott P. Scharfman and Justin C. Jacobs under this Statement shall continue until the undersigned is no longer required to file any of Forms 3, 4 and 5 and Schedule 13D with regard to the undersigneds ownership of or transactions in securities of The Management Network Group, Inc. unless earlier revoked in writing. The undersigned acknowledges that Charles M. B. Goldman, Scott P. Scharfman and Justin C. Jacobs are not assuming any of the undersigneds responsibilities to comply with Section 16 or Section 13 of the Securities Exchange Act of 1934.
Dated: April 4, 2014 | /s/ Thomas E. Lynch | |||
Thomas E. Lynch |
CUSIP No. 561693201 | Page 1 of 1 Page |
Exhibit 3
CONFIRMING STATEMENT
This Statement confirms that the undersigned has authorized and designated Thomas E. Lynch, Charles M. B. Goldman and Justin C. Jacobs, each acting singly, to execute and file on the undersigneds behalf all Forms 3, 4 and 5 and Schedule 13D (including any amendments thereto and any joint filing agreements with respect thereto) that the undersigned may be required to file with the U.S. Securities and Exchange Commission as a result of the undersigneds ownership of or transactions in securities of The Management Network Group, Inc., a Delaware corporation. The authority of Thomas E. Lynch, Charles M. B. Goldman and Justin C. Jacobs under this Statement shall continue until the undersigned is no longer required to file any of Forms 3, 4 and 5 and Schedule 13D with regard to the undersigneds ownership of or transactions in securities of The Management Network Group, Inc. unless earlier revoked in writing. The undersigned acknowledges that Thomas E. Lynch, Charles M. B. Goldman and Justin C. Jacobs are not assuming any of the undersigneds responsibilities to comply with Section 16 or Section 13 of the Securities Exchange Act of 1934.
Dated: April 4, 2014 | /s/ Scott P. Scharfman | |||
Scott P. Scharfman |