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Youngstown’s Covelli Centre ended the first quarter with a $100K operating surplus
YOUNGSTOWN
The Covelli Centre finished the first three months of the year with a $100,482 operating surplus, but it was a far cry from the amounts earned during the first quarter of the previous three years.
“Although we had a busy first quarter, it was modest financially,” Eric Ryan, the center’s executive director, said Monday.
In comparison, the center in 2016 had an operating surplus of $306,862 for January to March. During those same three months in 2015, the operating surplus was $261,358. In 2014, the first-quarter operating surplus was a record $382,016.
But Ryan points out the center still had a good start to the year. The center had expected a $96,202 operating surplus in the first quarter, so it slightly exceeded expectations.
There were 28 events during the first three months of this year, with 12 of them being Youngstown Phantoms hockey games.
The biggest show was a 6,000-seat sold-out concert by Brantley Gilbert, a country musician, Ryan said. About 4,800 attended an “I Love the ’90s Tour” concert that included pop acts from that decade.
The city made $73,634 during the first three months of the year from its 5.5 percent admission tax on tickets sold for events at the center, said Kyle Miasek, the city’s deputy finance director.
The news in the second quarter – April to June – is expected to be significantly worse.
The center is projected to lose $150,000 in the second quarter, but Ryan said Monday that it should be somewhat less.
“The second quarter will be really slow,” he said.
The second quarter historically has been the most unstable time at the city-owned center. In its 11 other second quarters, there have been five operating surpluses and six losses. However, there hasn’t been a six-figure loss at the facility since 2007.
The center is expected to finish 2017 with its lowest operating surplus amount since 2011.
The center is budgeted to have a $175,000 operating surplus this year.
That includes a projected $75,000 operating surplus for the third quarter and a $150,000 operating surplus for the fourth quarter, Ryan said.
“The concert industry often goes in cycles,” he said. “The first half of this year is a bit down; however, we are optimistic to land a few more high-profile concerts and events that would propel our year-end financials.”
Mayor John A. McNally said he was pleased with the first-quarter numbers and wants “to wait and see how the year ends before we make any major pronouncements. If you have two or three major concerts, it can turn things around very quickly.”
The center is “working to get a couple of big shows and be in good shape” this year, Ryan said.
The city borrowed $11.9 million in 2005 to pay its portion of building the $45 million facility. The city still owes $9.76 million in principal.
The plan this year is to make a $600,000 principal payment with about $171,000 in interest.
The city uses money from the center’s operating surplus and the admission tax along with the carry-over fund balance it has from previous years to make the principal and interest payments.