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Note 3 - Investments in Associated Companies

3 Months Ended

Dec. 27, 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
		December 27,				December 29,
(Thousands of Dollars)		2020				2019

Operating revenue			9,400				10,195
Operating expenses			7,005				8,165
Operating income			2,395				2,030
Company's 50% share of operating income			1,198				1,015
Less amortization of intangible assets			—				104
Equity in earnings of TNI			1,198				911

TNI makes weekly distributions of its earnings and for the 13 weeks ended December 27, 2020 and December 29, 2019, we received $1,056,000 and $738,000 in distributions.

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
		December 27,				December 29,
(Thousands of Dollars)		2020				2019

Operating revenue			11,922				13,925
Operating expenses, excluding restructuring costs, depreciation and amortization			10,430				12,120
Restructuring costs			106				—
Depreciation and amortization			110				145
Operating income			1,276				1,660
Net income			1,089				1,316
Equity in earnings of MNI			545				658

MNI generally makes quarterly distributions of its earnings, however no distributions were made in the 13 weeks ended December 27, 2020 and December 29, 2019, respectively.