Postmedia Network Canada Corp., reported unaudited consolidated earnings results for the first quarter ended November 30, 2016. Net income in the quarter ended November 30, 2016 was $17.8 million, as compared to a net loss of $4.2 million in the same period in the prior year. Net income was primarily the result of a gain on debt settlement realized as part of the Recapitalization Transaction, partially offset by an operating loss which includes a $21.6 million non-cash impairment charge and an increase in restructuring and other items expense. Operating income before depreciation, amortization, impairment and restructuring of $21.8 million in the quarter represents a decrease of $20.7 million relative to the same period in the prior year. The decrease is due to revenue declines which were only partially offset by operating cost savings related to cost saving initiatives. Revenue for the quarter was $214.9 million as compared to $251.1 million in the prior year, a decrease of $36.2 million (14.4%). The revenue decline was primarily due to decreases in print advertising revenue of $31.1 million (21.9%) and print circulation revenue of $6.1 million (9.0%). Digital revenue increased by $1.2 million (4.1%) in the quarter. Cash flows used in operating activities was $37,919,000 against $2,712,000 a year ago. Purchases of property and equipment was $879,000 against $705,000 a year ago.