Temple Gardens Centre had deficit of nearly $500K in Q1, data shows

MOOSE JAW — The Temple Gardens Centre experienced a first-quarter deficit of nearly $500,000, which was $322,000 more than expected and was mainly due to the venue not receiving revenue for events on time.

From Jan. 1 to March 31, the former Events Centre had actual revenues of $1,777,685 and actual expenses of $2,218,670, for an operating deficit of $440,985.

However, after including the management fee of $38,164 and the WHL Warriors’ building rentals revenue of $800, the net operating loss was $476,349. Overall, this represented a cost recovery rate of 78.77 per cent, leaving taxpayers to cover the remaining 21.23 per cent.

In comparison, building manager OVG360 had budgeted $1,936,571 in revenues and $2,054,167 in expenses for the quarter, leaving an expected operating loss of $117,596. Including the management fee of $39,181 would have led to an overall operating loss of $156,777.

Therefore, the differences between the actual and budgeted revenues, expenses and net income were -$158,886, -$164,503 and -$321,572.

Of note, there was $311,605 less in event revenue than expected, while the rink program generated $17,832 less in revenue than planned, the report said. Meanwhile, there was $103,911 more in event expenses than budgeted, along with $53,779 more in overhead expenses than budgeted.

The Q1 numbers were based on 62 events over 67 days and a total paid general attendance of 47,127 people.

City administration presented the first-quarter financial report during the May 12 regular city council meeting. Financial information about the Temple Gardens Centre/Multiplex was included in the document.

Council later unanimously voted to receive and file the report.

Coun. Jamey Logan pointed out that there was “a very substantial difference” between the budgeted amounts and the actuals for Q1. He wondered why the TGC had experienced such issues and didn’t budget for those swings.

Shaunna Fritzler, general manager, said these differences related to the timing of when the venue received revenues and expenses. For example, it was forced to complete two unexpected repairs in Q1, while two large unbudgeted expenses came through.

Furthermore, the TGC faced timing issues with ticket sales for the international curling tournament and the upcoming concerts of Mark Chestnutt and Shania Twain, as the venue recognized the expense side of these purchased tickets in March, she continued.

Meanwhile, the organization saw revenues for the curling tickets in April — the start of Q2 — and it will see revenue for the concerts in June and July, Fritzler added.

Food and beverage sales

From Jan. 1 to March 31, OVG360 generated $549,606 in total catering and concession sales, while the total cost of goods was $211,801. This led to a total gross sales profit of $337,805.

After removing total payroll, total variable expenses, management incentives and management fee, the net profit was $146,284.

These numbers were based on 62 events and paid attendance of 47,127 people.

The next regular council meeting is Monday, May 26.