The Covelli Centre had its worst third quarter loss in six years

By David Skolnick

skolnick@vindy.com

YOUNGSTOWN

Despite a sold-out Rod Stewart concert, the Covelli Centre had its worst operating loss in the July-to-September quarter in six years.

The center finished the third quarter with an $83,111 operating loss. It was the worst third quarter since 2008 when the operating loss was $141,775.

The third quarter is traditionally a money-loser for Covelli and other indoor facilities.

“It’s very, very difficult to do well in the third quarter,” Ryan said. “Without an outdoor facility, it’s difficult to make money during the summer.”

When asked how much worse the quarter would have been without Stewart’s Aug. 24 performance, Eric Ryan, the center’s executive director, said, “Substantially more of a loss.”

Ryan declined to say how much money the center made on the Stewart concert.

Besides the Stewart concert, there were only 11 other events during those three months at the center.

Among the extra expenses during the July-to-September quarter was $30,000 for improvements including painting the seating areas and the center’s hallways as well as new carpet on the floors of the suite corridors and hallways, Ryan said.

The facility also is finishing an upgrade to its VIP area with new carpeting, paint, furniture and a glass barrier wall. The center will spend about $20,000 during the final three months of the year for that work, Ryan said.

Even with the poor third quarter, the center’s operating surplus of $299,494 is a record for the first nine months of a year.

That’s the result of a $382,016 operating surplus in the first quarter — the most profitable three months in the center’s nine-year history — largely driven by a Feb. 1 sold-out Elton John concert. The facility had a $577 operating surplus in the second quarter of the year.

The center’s budget calls for a $29,000 operating surplus in the year’s final quarter.

“What matters the most is how we finish the year, and 2014 will be another good one,” Ryan said.

Mayor John A. McNally agreed.

“From my perspective, quarters come and quarters go,” he said. “I’m more concerned about what the end-of-the-year number is, and I’m pleased with the year.”

The operating-surplus record for the center is $320,787 in 2012.

Ryan said he expects 2014 to exceed that amount.

Also, it’s already broken last year’s total-revenue record of $546,052. That’s a combination of operating surplus, a 5.5 percent admission tax, and the city’s profit from food-and-beverage sales.

The city already has made $569,189 this year from the three revenue streams.

The center made $47,680 from the admission tax last quarter, and $180,617 during the first nine months of this year.

During the first six months of the year, the city received $89,078 in food-and-beverage profit. That amount is reported twice a year. The budget for the food-and-beverage profit projection for the second half of this year is $14,197.

The money generated by the facility helps offset the $11.9 million loan Youngstown borrowed in 2005 to pay its portion of the $45 million it cost to build it.

The city is paying $350,000 toward the principal and $122,590 in interest this year for a total of $472,590. The center already has made more than that this year.

This will be the third year in a row the center will make enough to cover the cost of principal and interest.

However, the city still owes $10.66 million in principal on the loan from 2005.