MSG Networks Inc. reported unaudited consolidated earnings results for third quarter and nine months ended March 31, 2018. For the quarter, the company's revenues were $186,568,000 against $183,247,000 a year ago. Operating income was $80,584,000 against $83,474,000 a year ago. Income from continuing operations before income tax was $70,440,000 against $73,591,000 a year ago. Income from continuing operations was $46,935,000 against $44,155,000 a year ago. Net income was $46,935,000 against $44,155,000 a year ago. Diluted income per share from continuing operations was $0.62 against $0.58 a year ago. Diluted net income per share was $0.62 against $0.58 a year ago. Adjusted operating income was $85,725,000 against $88,439,000 a year ago. Operating income decreased 3%, or $2.9 million, as compared with the prior year period, primarily due to the increase in direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses (including share-based compensation expense), partially offset by the increase in revenues and, to a lesser extent, lower depreciation and amortization. Adjusted operating income was decreased 3%, or $2.7 million, as compared with the prior year period, primarily due to the increase in direct operating expenses and, to a lesser extent, higher selling, general and administrative expenses (excluding share-based compensation expense), partially offset by the increase in revenues.

For the nine months, the company's revenues were $525,246,000 against $512,471,000 a year ago. Operating income was $232,523,000 against $238,546,000 a year ago. Income from continuing operations before income tax was $202,557,000 against $209,944,000 a year ago. Income from continuing operations was $243,660,000 against $127,771,000 a year ago. Net income was $243,660,000 against $127,651,000 a year ago. Diluted income per share from continuing operations was $3.21 against $1.69 a year ago. Diluted net income per share was $3.21 against $1.69 a year ago. Adjusted operating income was $250,257,000 against $253,718,000 a year ago. Net cash provided by operating activities from continuing operations was $164,851,000 against $161,673,000 a year ago. Net cash provided by continuing operations was $53,487,000 against $58,078,000 a year ago. Capital expenditures were $1,470,000 against $2,576,000 a year ago. Net debt as on March 31, 2018 was $1,020,426,000.

For the fiscal 2019, the company expects GAAP tax rate will fully reflect the new federal tax rate of 21%. However, the company anticipates that its fiscal 2018 fourth quarter GAAP tax rate will be higher than its rate for the third quarter as a result of certain adjustments, which are necessary to reflect the impact of tax reform becoming effective at the midpoint of its fiscal year. Finally, and importantly, effective January 1, 2018, the company anticipates at least a 20% reduction in cash taxes payable on income from continuing operations before income taxes as compared with amounts that would have otherwise been payable under the prior law.