Carnival Center Suffers 610000 Loss In First Three Months
By Dan Dolan
Low ticket sales and high operating costs caused an unanticipated $610,000 loss for the first three months of business at the Carnival Center for the Performing Arts, executives said last week.
But center CEO Michael Hardy and Chief Financial Officer John Burnett said they’re not ready to sound the fiscal alarm — or ask county government to increase its $3.75 million operating subsidy — because the $460 million cultural mecca is still teething.
"Clearly, we’re running behind the budget plan prepared before the center opened in October," Mr. Hardy said. "We need another two months’ data to accurately project where we’ll be when our fiscal year ends in September."
The plan projected a $550,000 first-year deficit, even with county subsidies. It didn’t include the $610,000 lost to date. But Mr. Burnett said the three-month shortfall can’t be used to predict the rest of the year.
"We do anticipate a $550,000 loss, but we don’t know if it will be larger," Mr. Burnett said. "If we reduce operating costs and improve ticket sales, we may eliminate the $610,000 deficit and make in-roads into the $550,000 shortfall."
Mr. Hardy said budget projections used an industry-standard $7.95-per-square-foot factor to figure operating costs. Actual expenses are running $14.40 per square foot, he said. Estimates for ticket sales at center-sponsored events, the largest cash cow, were based on an industry average 65% of seating capacity, he said.
October shows had a 26% sell-through. That climbed to 38% in November and to 52% by mid-December. Two events scheduled for next month have topped the 60% sales mark, said Mr. Burnett, who said income from facility rentals is 45% higher than projected and parking revenues are up $110,000. Advertisement
Related Articles
- FYI Miami: May 6, 2021
- Miami hotels scramble to find staff
- Miami’s real estate sales boom exhausts superlatives
- County floats bonds for Royal Caribbean headquarters
- Air cargo firms grow capacity at Miami International Airport
- County kicks can down road on garbage rate hike
- Tourism outlook upbeat after a strong month
- Miami taxes stay flat, but bills may rise
- Miami-Dade recycling, once a profit center, swings…
- Construction costs for multifamily housing rise by half
Most Popular
- Miami Beach goes shopping for $6.5 million oceanfront house
- Miami International Airport advances vast Central Terminal revamp
- Biden budget funds Northeast Miami-Dade rail startup
- Future of deteriorating Jackie Gleason Theater a tossup
- Three-tower Miami Riverbridge wins river commission backing
- 40-story Santander Tower to add Brickell Class A offices
- Highly touted 830 Brickell office tower opening awaited
- Coral Gables talks to Miami International Airport CEO for manager
- Underdeck 33-acre park under signature bridge underfunded
- Polish American Club plans Miami River tower
Recent Comments