Postmedia Network Canada Corp. reported unaudited consolidated earnings results for the first quarter ended November 30, 2012. Net earnings attributable to equity holders of the company in the quarter were CAD 8.3 million or CAD 0.20 per diluted share compared to net earnings of CAD 28.3 million or CAD 0.70 per diluted share in the same period in the prior year.

The decrease in net earnings is primarily due to lower revenue partially offset by operating cost reductions and the gain on sale of the Times Colonist in Victoria and British Columbia based community newspaper assets in the same period in the prior year. Operating income of CAD 26.7 million in the quarter decreased CAD 7.5 million compared to operating income of CAD 34.2 million in the same period in the prior year. Operating income before depreciation, amortization and restructuring of CAD 49.1 million in the quarter represents a decrease of CAD 5.5 million, relative to the same period in the prior year.

Revenue totaled CAD 211.7 million, a decrease of CAD 19.4 million or 8.4% relative to CAD 231.09 million for the same period in the prior year. This decrease was primarily due to a decrease in print advertising revenue of CAD 16.6 million or 11.1% with declines occurring in classified, national, retail and insert advertising categories. Earnings before income taxes were CAD 8.30 million compared to CAD 14.28 million reported a year ago.

Net earnings from continuing operations were CAD 8.3 million or CAD 0.20 per diluted share compared to CAD 14.3 million or CAD 0.34 per diluted share reported a year ago. Cash flows from operating activities were CAD 13.23 million compared to CAD 9.92 million reported a year ago. Additions to property and equipment were CAD 2.64 million compared to CAD 1.5 million reported a year ago.

Additions to intangible assets were CAD 0.96 million compared to CAD 1.5 million reported a year ago.