Net Sales for the third quarter were $532 million, down 0.2% or $1 million, year over year. The net sales decrease was driven by a $6 million decrease in our Education segment, partially offset by a $5 million increase in our Trade Publishing segment. Within our Education segment, which includes our Basal business and our Extension businesses, the decline in year over year net sales was attributable to our Basal business, inclusive of international sales, which declined by $6 million from $301 million in 2016 to $295 million. Billings for the third quarter of 2017 were $584 million, down 6% or $36 million compared with $620 million for the same period in 2016. The decrease was driven by a $41 million decrease in our Education segment billings, slightly offset by a $5 million increase in our Trade Publishing segment billings. Within our Education segment, the decline in year over year billings was attributable to our Basal business, inclusive of international sales, which declined by $27 million from $338 million in 2016 to $311 million. Net income of $91 million in the third quarter of 2017 was slightly higher compared to a net income of $90 million in the same quarter of 2016, due primarily to the same factors impacting operating income offset by an unfavorable change in our income tax benefit of $5 million, from an income tax benefit of $16 million for the same period in 2016 to an income tax benefit of $11 million in 2017, primarily related to a change to our estimated annual effective tax rate during the prior year period. Click Read More below for additional information.
American Media, Inc. (AMI) announced on its earnings call on July 1, 2015 that its revenue and Adjusted EBITDA from continuing operations for the fiscal year ended March 31, 2015 were $245.2 million and $74.4 million, respectively. AMI also reported the deleveraging of its balance sheet through the repurchase of its first and second lien notes in the aggregate amount of $58.1 million. AMI stated that during Fiscal Year 2015, its digital revenue increased 26% to $9.9 million.
In his remarks, AMI Chairman, CEO and President David J. Pecker commented that advertising remains strong in the first quarter of AMI’s new fiscal year, with print and digital ad revenues for Men’s Fitness, Star and OK magazines all up versus the prior fiscal year. He also noted that for the first time since the publishing industry’s second largest wholesaler ceased operations in May 2014, AMI newsstand unit sales in the celebrity market have stabilized.
For Fiscal Year 2016, AMI provided revenue and Adjusted EBITDA guidance of $230-$235 million and $80-$85 million, respectively.
Mr. Pecker concluded his remarks by saying that, based on significant deleveraging during Fiscal Year 2015, AMI’s strong print and digital advertising performance, the stabilization of newsstand sales and AMI’s projected cash flow from operations of $35 million for Fiscal Year 2016, the company is evaluating refinancing options for its $273.2 million of outstanding First Lien Notes due December 2017. Any refinancing of the outstanding first lien notes will be subject to market conditions.