Covelli Centre Nets $60K for Q1 2013
YOUNGSTOWN, Ohio -- The Covelli Centre ended the first quarter of 2013 with an operationing profit of $60,248, short of the $98,979 that had been forecast.
In a letter to Mayor Charles Sammarone and members of City Council, Eric Ryan, president of JAC Management Group and executive director of the city-owned arena, said the first-quarter performance was expected. "This typically happens the first quarter of each year considering our expenses are the highest during this time frame with costly utilities and event changeovers," he wrote. "This trend reverses during the next two quarters as our expenses are lower than budgeted."
According to the first quarter income statement, utilities for the period were $103,349, $24,275 or about 31% above the $79,074 that had been budgeted. Rental income for the quarter was $124,096, compared to the $163,071 that had been budgeted.
The Covelli Centre hosted 33 events during the quarter, including elementary and middle school state wrestling championships, which the building has held for three consecutive years, and sold-out concerts featuring Rascal Flatts and Kid Rock.
In addition, Ryan reported that food and beverage operations, which JAC Management took over April 19, 2012, generated $21,326.09 more to the 2012 financials than had been reported previously. For comparison, he noted that the first quarter typically accounts for about 40% of annual food and beverage revenue, "which will ultimately increase the yearend profit for 2013" over last year.
Also, the city's 5.5% admission tax generated $45,064.30 on top of the operations figures. "These monies are paid directly" to the city, he said.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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