Postmedia Network Canada Corp. announced unaudited consolidated earnings results for the third quarter and nine months ended May 31, 2017. For the third quarter, the company's net earnings attributable to equity holders of the company was CAD 13.046 million, as compared to a net loss of CAD 23.682 million in the same period in the prior year. The change was primarily the result of one-time non-cash items including a gain of CAD 22.8 million related to changes in the company's employee benefit plans and a decrease of CAD 15.2 million in impairment charges as well as a decrease in interest expense as a result of a recapitalization transaction in the first quarter of fiscal 2017, partially offset by unrealized foreign currency exchange losses. Operating income before depreciation, amortization, impairment and restructuring was CAD 20.422 million in the quarter represents an increase of CAD 0.6 million relative to the same period in the prior year of CAD 19.787 million. The increase is due to increased digital revenues and operating cost savings related to cost savings initiatives. Total revenues were CAD 194.045 million as compared to CAD 218.318 million in the prior year, a decrease of CAD 24.3 million. The revenue decline was primarily due to decreases in print advertising revenue of CAD 22.0 million (19.1%) and print circulation revenue of CAD 5.5 million (8.5%). Digital revenue increased CAD 3.9 million (13.7%) in the quarter with digital advertising revenue up 22.8%. Operating income was CAD 24.238 million against loss of CAD 18.297 million a year ago. Earnings before income taxes were CAD 13.046 million against loss of CAD 23.682 million a year ago. Cash flows used in operating activities was CAD 11.268 million against cash flows from operating activities of CAD 6.421 million a year ago. Purchases of property and equipment were CAD 1.802 million against CAD 4.535 million a year ago. Purchases of intangible assets were CAD 0.791 million against CAD 2.587 million a year ago.

For the year-to-date, the company's net earnings attributable to equity holders of the company was CAD 4.428 million, as compared to a net loss of CAD 253.042 million in the same period in the prior year. The change was primarily the result of one-time non-cash items including a gain of CAD 22.8 million related to changes in the company's employee benefit plans, a decrease of CAD 181.2 million in impairment charges and a gain on debt settlement of CAD 78.6 million realized as part of a recapitalization transaction as well as a decrease in interest expense, partially offset by an increase in restructuring expense. Operating income before depreciation, amortization, impairment and restructuring was CAD 48.241 million, a decrease of CAD 26.7 million relative to the same period in the prior year of CAD 74.980 million. The decrease is due to revenue declines which were only partially offset by operating cost savings. Total revenues were CAD 589.694 million as compared to CAD 678.482 million in the prior year, a decrease of CAD 88.8 million (13.1%). The revenue decline was primarily due to decreases in print advertising revenue of CAD 78.4 million (21.2%) and print circulation revenue of CAD 17.2 million (8.7%). Digital revenue increased CAD 7.7 million (9.2%) in the nine months ended May 31, 2017 with digital advertising up 15.4%. Operating loss was CAD 41.966 million against CAD 195.292 million a year ago. Earnings before income taxes were CAD 4.428 million against loss of CAD 253.042 million a year ago. Cash flows used in operating activities were CAD 37.173 million against CAD 1.882 million a year ago. Purchases of property and equipment were CAD 3.053 million against CAD 6.433 million a year ago. Purchases of intangible assets were CAD 1.569 million against CAD 3.998 million a year ago.

For the third quarter, the company's impairments were CAD 4.166 million against CAD 20.000 million a year ago.

The company also announced the appointment of Brian Bidulka as Executive Vice President and Chief Financial Officer. Mr. Bidulka is an experienced finance executive with a 30-year career that includes senior roles in the food & beverage, telecommunications and technology industries. Mr. Bidulka joins Postmedia on July 17.