Covelli Centre posts $261K surplus for first quarter

By DAVID SKOLNICK

skolnick@vindy.com

YOUNGSTOWN

A busy calendar of events during the first three months of the year resulted in the Covelli Centre’s having its second-best financial first quarter — as well as its second-best quarter ever.

The facility’s operating surplus for the January-March period was $261,358, according to figures provided Monday by the center.

During the first 90 days of the year, the center had 42 events.

“When facility usage is nearly

50 percent over the course of a quarter, that usually results in good numbers,” said Eric Ryan, the center’s executive director and head of JAC Management Group.

Leading the way were sold-out concerts by Brad Paisley and Trans-Siberian Orchestra as well a monster-truck show and a near sellout for a World Wrestling Entertainment show.

Also, the center hosted two weekends of the state’s elementary- and middle-school wrestling championships, and a few Youngstown Phantoms hockey games had crowds of about 3,000, Ryan said.

The center had projected to make $230,889 in operating surplus during the first three months of the year.

“We are very pleased,” Ryan said. “When you add all these things up, it was a tremendous quarter.”

The only quarter to do better at the city-owned center, which opened in October 2005, was the first quarter of last year.

The operating surplus for that three-month period was $382,016, largely because of a sold-out Elton John concert. That Feb. 1, 2014, show had a record attendance of 7,611.

The previous financial record was the first quarter of 2009 with a $242,340 operating surplus, primarily because of a Kelly Pavlik middleweight boxing title fight.

Also, the city’s 5.5 percent admission tax on tickets sold for events at the center during the first three months of this year generated $82,431, according to Kyle Miasek, the city’s deputy finance director.

“The numbers are excellent,” he said. “It’s all positive. We’re confident they’ll achieve the year-end target and the money will be used to cover debt and interest.”

The center is projecting a $334,000 operating surplus for this year, which includes food service, which JAC took over in 2013.

Although the first three months of the year were successful, Ryan said the second quarter — April to June — is going to be a money loser.

The center had projected a $137,000 loss for those three months. Ryan said he expects it won’t be as bad as projected, but it still will be a large loss.

There are 15 events for those three months.

“It’s going to be a slow second quarter, but our third quarter, which is traditionally our worst, is going to be better than budgeted,” Ryan said.

The budget called for a $6,000 loss in the third quarter, but Ryan expects to make a profit thanks primarily to the July 15 Def Leppard and Aug. 3 James Taylor concerts.

“The third quarter will be better than normal because of those two anchor shows,” Ryan said.

Since it opened, the center has had an operating surplus for the July-to-September quarter once — $35,320 in 2011.

“Going by quarters is so volatile because it depends on when the shows occur,” Ryan said. “It’s tough to budget. You don’t know if you’re going to hit a grand slam, but we go to the plate all the time, dig in and swing as hard as we can.”

The center made a record $485,234 operating surplus last year after budgeting to make $331,971. Add to that, $221,485 was collected from the admission tax and the center’s 2014 revenue was $706,719.

The center is projecting a $334,000 operating surplus this year, Ryan said. And the city budgeted $240,000 in admission-tax proceeds, Miasek said. That’s $574,000 between the two revenue sources.

With collection of the admission tax, Ryan and Miasek expect the center to finish 2015 with more money than the city will pay in principal and interest for the facility this year. If so, it would be the fourth-straight year that has occurred.

The city will pay $472,590 in principal and interest — $350,000 and $122,590, respectively — this year.

The city borrowed $11.9 million in 2005 to pay its portion to build the $45 million facility. It still owes $10,635,000 in principal.