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Note 3 - Investments in Associated Companies

9 Months Ended

Jun. 27, 2021

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 27,				June 28,				June 27,				June 28,
(Thousands of Dollars)		2021				2020				2021				2020

Operating revenue			8,389				8,222				26,548				28,602
Operating expenses			6,077				6,645				19,506				22,576
Operating income			2,312				1,577				7,042				6,026
Company's 50% share of operating income			1,156				789				3,521				3,013
Less amortization of intangible assets			—				—				—				209
Equity in earnings of TNI			1,156				789				3,521				2,804

TNI makes weekly distributions of its earnings and for the 13 weeks ended June 27, 2021 and June 28, 2020 we received $544,000 and $959,000 in distributions, respectively. In the 39 weeks ended June 27, 2021 and June 28, 2020, we received $3,161,000 and $2,650,000 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 27,				June 28,				June 27,				June 28,
(Thousands of Dollars)		2021				2020				2021				2020

Operating revenue			11,479				10,875				34,425				37,125
Operating expenses, excluding restructuring costs, depreciation and amortization			8,657				10,542				29,324				34,222
Restructuring costs			—				—				106				—
Depreciation and amortization			188				172				480				514
Operating income			2,634				161				4,515				2,389
Net income			1,066				107				2,762				1,938
Equity in earnings of MNI			533				54				1,381				969

MNI makes quarterly distributions of its earnings and in the 13 weeks ended June 27, 2021 and June 28, 2020, we received dividends of $750,000 and $0, respectively. In the 39 weeks ended June 27, 2021 and June 28, 2020, we received dividends of $1,900,000 and $1,000,000 respectively.