Note 3 - Investments in Associated Companies

9 Months Ended

Jun. 26, 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				Nine months ended
	June 26,		June 27,		June 26,		June 27,
(Thousands of Dollars)	2022		2021		2022		2021
Operating revenue		8,229		8,389		25,805		26,548
Operating expenses		6,492		6,077		19,365		19,506
Operating income		1,737		2,312		6,440		7,042
Company's 50% share of operating income		869		1,156		3,220		3,521
Equity in earnings of TNI		869		1,156		3,220		3,521

TNI makes periodic distributions of its earnings and for the three months ended June 26, 2022, and June 27, 2021, we received $676,000 and $544,000 in distributions, respectively. In the nine months ended June 26, 2022, and June 27, 2021, we received $2,935,000 and $3,161,000 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				Nine months ended
	June 26,		June 27,		June 26,		June 27,
(Thousands of Dollars)	2022		2021		2022		2021
Operating revenue		11,921		11,479		35,677		34,425
Operating expenses, excluding restructuring costs, depreciation and amortization		9,682		8,657		28,402		29,324
Restructuring costs		122		—		122		106
Depreciation and amortization		167		188		507		480
Operating income		1,950		2,634		6,646		4,515
Net income		362		1,066		1,982		2,762
Equity in earnings of MNI		181		533		991		1,381

MNI makes periodic distributions of its earnings and in the three months ended June 26, 2022 and June 27, 2021, we received $200,000 and $750,000, respectively. In the nine months ended June 26, 2022, and June 27, 2021, we received dividends of $1,000,000 and $1,900,000, respectively.