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Youngstown’s Covelli Centre had its second-strongest third quarter operating surplus
YOUNGSTOWN
Although the Covelli Centre’s third-quarter operating surplus of $4,040 is modest, it’s the second-strongest July-to-September period and only the third time the facility finished that time period with an operating surplus in its history.
“Any time we can be in the black during those three very difficult months, we consider that as a positive,” said Eric Ryan, the center’s executive director.
The best third quarter at the city-owned center, which opened in October 2005, was 2011 with a $35,320 surplus. The only other third quarter with a surplus was last year at $3,658.
The eight other July-to-September periods saw operating deficits, with the worst being the first two: $253,998 in 2006 and $220,938 in 2007.
“If you look at the history, [the third quarter] is always the hardest time for us and other indoor” venues, Ryan said.
The center had expected to lose $26,417 in the quarter.
Though there were eight events at the center between July and September this year, the money was made on two of them: the KISS concert Aug. 26 with about 5,500 in attendance and the 6,000-seat sellout show by Lionel Richie a day later.
Two other concerts – Alabama on Aug. 12 and Bryan Adams on Sept. 13 – attracted about 4,000 people each.
The four other events were an outdoor boxing card, a wellness walk, the Panerathon and a women’s entrepreneurship program, Ryan said.
For the first nine months of the year, the center’s operating surplus is $284,188. City officials had budgeted an $82,926 surplus for the first nine months.
In addition to the operating surplus, the center also gave $67,412 to the city between July and September from a 5.5 percent admission tax on tickets sold for events, said Kyle Miasek, the city’s deputy finance director.
The tax brought in $151,510 during the first six months. With these last three months included, the tax generated $218,922 for the city as of Sept. 30.
Also, a change made a few years ago to have Ryan’s company, JAC Management Group, take over the center’s food-and-beverage sales generated an extra $73,605 to the facility’s bottom line as of June 30. Those sales are reported twice a year compared to income and admission tax, which is provided quarterly.
“How could we not be pleased with the results so far this year?” Miasek asked. “We’re making a dent into the summer outdoor music scene. The foundation has been laid. Our toughest nut to crack is to lure these acts indoors that normally only play outdoors in the summer.”
The center is budgeted to have a $191,713 operating surplus for the final three months of the year. But Ryan said the center “is hoping we can get to $150,000.”
That’s because some shows – most notably KISS – slated to run during the final three months ended up being scheduled earlier in the year, he said.
If the center has a $150,000 operating surplus in the last quarter, it would finish the year with a $434,188 surplus. That would be the second-best operating surplus in the center’s history. In 2014, the surplus was $485,234.
The center is on pace to have its eighth consecutive year with an operating surplus.
Among the bigger events scheduled to end the year at the center are a Nov. 13 Keith Urban concert, Trans-Siberian Orchestra kicking off its North American tour with two shows Nov. 17, six performances by Ringling Bros. and Barnum & Bailey Circus on Nov. 19 and 20, and eight Disney on Ice shows between Dec. 21 and 25.
The city borrowed $11.9 million in 2005 to pay its portion to build the $45 million facility. The city didn’t pay anything toward the principal until 2010, and has since increased its principal payment annually. It currently owes $9.76 million.
This year, the city is paying $146,400 in interest and $646,000 in principal, or $792,400 in total. The center has made $576,715 during the first nine months among operating surplus, the admission tax and the extra food-and-beverage revenue.
Between the three revenue sources, the center is likely to finish 2015 for the fifth straight year with more money than the cost of principal and interest.