Note 3 - Investments in Associated Companies

6 Months Ended

Mar. 27, 2022

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 Gannets Co. Inc.'s subsidiary Citizen Publishing Company (“Citizen”), 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:

	Three months ended				Six months ended
	March 27,		March 28,		March 27,		March 28,
(Thousands of Dollars)	2022		2021		2022		2021
Operating revenue		8,594		8,759		17,575		18,159
Operating expenses		6,409		6,424		12,873		13,429
Operating income		2,185		2,335		4,702		4,730
Company's 50% share of operating income		1,093		1,168		2,351		2,365
Equity in earnings of TNI		1,093		1,168		2,351		2,365

TNI makes periodic distributions of its earnings and for the three months ended March 27, 2022 and March 28, 2021, we received $1,401,000 and $1,561,000 in distributions, respectively. In the six months ended March 27, 2022 and March 28, 2021, we received $2,259,000 and $2,617,000 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:

	Three months ended				Six months ended
	March 27,		March 28,		March 27,		March 28,
(Thousands of Dollars)	2022		2021		2022		2021
Operating revenue		11,561		11,024		23,756		22,946
Operating expenses, excluding restructuring costs, depreciation and amortization		10,462		10,237		21,296		20,667
Restructuring costs		—		—		—		106
Depreciation and amortization		170		182		340		292
Operating income		929		605		2,120		1,881
Net income		627		605		1,620		1,694
Equity in earnings of MNI		314		303		810		847

MNI makes periodic distributions of its earnings and in the three months ended March 27, 2022 and March 28, 2021, we received $500,000 and $1,150,000, respectively. In the six months ended March 27, 2022 and March 28, 2021, we received dividends of $800,000 and $1,150,000, respectively.