XML 20 R9.htm IDEA: XBRL DOCUMENT

Note 3 - Investments in Associated Companies

9 Months Ended

Jun. 28, 2020

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

3	INVESTMENTS IN ASSOCIATED COMPANIES

TNI Partners

In Tucson, Arizona, TNI, acting as agent for our subsidiary, Star Publishing Company (“Star Publishing”), and Citizen Publishing Company (“Citizen”), a subsidiary of Gannett Co. Inc., is responsible for printing, delivery, advertising, and subscription activities of the Arizona Daily Star as well as the related digital platforms and specialty publications. TNI collects all receipts and income and pays substantially all operating expenses incident to the partnership's operations and publication of the newspaper and other media.

Income or loss of TNI (before income taxes) is allocated equally to Star Publishing and Citizen.

Summarized results of TNI are as follows:

		13 Weeks Ended						39 Weeks Ended
		June 28,			June 30,			June 28,			June 30,
(Thousands of Dollars)		2020			2019			2020			2019

Operating revenue		8,222			10,465			28,602			34,109
Operating expenses		6,645			8,363			22,576			26,291
Operating income		1,577			2,102			6,026			7,818
Company's 50% share of operating income		789			1,051			3,013			3,909
Less amortization of intangible assets		—			105			209			313
Equity in earnings of TNI		789			946			2,804			3,596

TNI makes weekly distributions of its earnings and for the 13 weeks ended June 28, 2020 and June 30, 2019, we received $959,000 and $731,000 in distributions, respectively. In the 39 weeks ended June 28, 2020 and June 30, 2019, we received $2,650,000 and $3,328,000 in distributions, respectively.

Madison Newspapers, Inc.

We have a 50% ownership interest in MNI, which publishes daily and Sunday newspapers, and other publications in Madison, Wisconsin, and other Wisconsin locations, and operates their related digital platforms. Net income or loss of MNI (after income taxes) is allocated equally to us and The Capital Times Company (“TCT”). MNI conducts its business under the trade name Capital Newspapers.

Summarized results of MNI are as follows:

		13 Weeks Ended						39 Weeks Ended
		June 28,			June 30,			June 28,			June 30,
(Thousands of Dollars)		2020			2019			2020			2019

Operating revenue		10,875			13,709			37,125			41,627
Operating expenses, excluding restructuring costs, depreciation and amortization		10,542			12,132			34,222			36,338
Restructuring costs		—			67			—			134
Depreciation and amortization		172			280			514			839
Operating income		161			1,230			2,389			4,316
Net income		107			1,010			1,938			3,405
Equity in earnings of MNI		54			505			969			1,702

MNI makes quarterly distributions of its earnings and in the 13 weeks ended June 28, 2020 and June 30, 2019, we received dividends of $0 and $850,000, respectively. In the 39 weeks ended June 28, 2020 and June 30, 2019, we received dividends of $1,000,000 and $2,350,000 respectively.