Mosaic Place experienced a deficit of over $80,000 during the first quarter of this year, although its in-house catering did generate nearly $60,000 in net profit.
From January to March, the sports and entertainment venue had income of $644,481 and $683,473 in expenses.
While this led to an operating loss of $38,992, after including $314 in pandemic expenses and $45,075 in management fees for Spectra Venue Management Services, that loss increased to $83,752.
In comparison, Spectra had budgeted income at $707,273 and expenses at $738,015 for the quarter, with an overall net loss — after adding the management fee — of $75,406.
Mosaic Place’s finances for the first quarter of 2022 were presented during city council’s May 24 regular meeting.
Food and beverage sales
Spectra won the contract last year to provide in-house food and beverage at Mosaic Place for all events.
The financial statement for that service during the first quarter showed the management company generated $292,821 in total concession and catering sales, while the total cost of goods was $96,701, leaving a gross sales profit of $196,120.
After removing payroll, “variable expenses” and management incentives from that income, the net profit was $58,414.
These financial numbers are based on 49 events between January and March that attracted 32,216 people.
Council discussion
Coun. Heather Eby was curious about the revenue for suite leases, pointing out actual income was $37,050 while $72,999 had been budgeted. She wondered if some people failed to renew their contracts. She also wondered about the supplemental catering fee since actual revenues were $5,159 compared to the budget of $0.
Suite leases are part of ongoing discussions for a new lease agreement with the Moose Jaw Warriors, explained general manager Ryan MacIvor. Meanwhile, an administrative and gratuity fee is charged to clients for catering meetings and premium seating.
The circus was in Moose Jaw during the May 21 weekend and 1,700 people attended the event, he continued. Traditional animal-focused circuses are a walk-up-based business, which the box office saw during the four days leading up to it.
“It was very well attended. It is a great family event. There was a different demographic than I normally see in the building, different faces … lots of kids and families than we’ve ever seen before,” MacIvor remarked.
Meanwhile, Alice Cooper performed on April 10 and 1,800 rock fans attended despite it being a Sunday night, he continued. He thought it was a great live event — it made money — since it was the first concert held at Mosaic Place since March 2020.
Coun. Doug Blanc expressed his concern about the $83,752 deficit and worried that it would continue until the end of the year.
“The income statement is up to the end of March. Really, we’re only behind budget by $8,300. So within the budget … we are on track,” said MacIvor. “The thing for us is that although we see areas of weakness, we also see areas of success. We see some areas doing better and others less.”
Council should remember that Mosaic Place managed to come through the pandemic when attendance levels and income streams dropped, he added. Spectra sees positivity in the months ahead and some uncertainty because, in the fall, PST is being added to tickets and the minimum wage is increasing. Both of those will affect the business.
The next regular council meeting is Monday, June 13.
