FOURTH MEETING OF THE YEAR 2005 -

MARKHAM THEATRE BOARD

TOWN OF MARKHAM

 

York Room, Markham Civic Centre

Monday, May 9th, 2005

 

MINUTES

 

ATTENDANCE:

 

Members

 

Brian Harvey, Chair

Evelyn Bailey

David Banfield

Neil Fernandez

Leslie Johnstone

Jim Jones

Genny Landis

George McKelvey

Elaine Rubin

Joyce Scobie

 

Regrets

 

Alex Chiu

Pat Kincaid

Michael Landry

Mario Miranda

Frank Scarpitti

Gary Unitas

Jim Sales

 

Staff

 

David Scott, Theatre Manager

Debbie Watson, Theatre Secretary

Barb Roth, Director, Recreation & Culture Services

 

 

The meeting convened at the hour of 5:30 p.m. with Brian Harvey in the Chair.

Fourth Markham Theatre Board Meeting - 2005,

May 9th, 2005,

Page 2.

 

1.0     REMARKS FROM THE CHAIR

 

          Brian Harvey noted the lack of a quorum at the start of the meeting.  He com- mented that the Season Launch was outstanding and very professionally done.  The response to date has been overwhelming.

 

1.1     APPROVAL OF THE MINUTES OF THE MARKHAM THEATRE FOR PER- FORMING ARTS BOARD MEETING HELD ON APRIL 4TH, 2005.

 

          RECOMMENDED:  THAT THE MINUTES OF THE MARKHAM THEATRE FOR PERFORMING ARTS BOARD MEETING HELD ON APRIL 4TH, 2005, BE APPROVED AS CIRCULATED.

 

1.2     June Events

 

David Scott reported that the June calendar is full of dance recitals and school programs, with one Chinese Opera.  June continues to be a very busy month for rentals.  July and August will be quieter.

 

2.0     FINANCIAL REPORT

 

2.1     Finance - Mario Miranda, Chair, Michael Landry, Pat Kincaid, Joyce Scobie

 

(a)      March Month End

 

          David Scott advised that there are a number of revenue items not reflected in the totals, but we are close to break even.  There are no comparisons to March, 2004, because those figures are not available.  Adjusting the monthly budget is not an option.  At the last meeting the Board requested town resources to help do rentals analysis.  There will be a further report on this at a later date.

 

          In reply to a question by David Banfield, David Scott agreed that the deficit would be lowered if the revenue items not yet transferred, had been.

 

(b)      Year-End Comparative Statistics

 

          David Scott noted that both the number of uses and the combined rental revenues to the end of April, are down compared to 2004.  This is an on-going concern.  There were a couple of cancellations due to the school board work-to-rule.  There is currently a little bit of instability in rentals.

Fourth Markham Theatre Board Meeting - 2005,

May 9th, 2005,

Page 3.

 

3.0     MANAGER’S REPORT

 

3.1     P.E.S. Sales Update

 

          David Scott reported on the final 2005 spring ticket sales, which were at 89% capacity, and at 94% capacity including complimentary tickets.  Spring ticket sales revenues are at 54% of the total budgeted fiscal 2005 amount.

 

3.2     Season Launch Follow-up

 

          David Scott advised that ticket sales have gone very quickly since they started a week ago.  The target is to sell 50% of capacity on subscriptions and there was 18.8% capacity sold in the first week alone, or $107,000 in sales.  This is 409% better than the first week of sales last year.  In fact, all figures are way up over last year.  “Unforgettable” is already 53% sold.  Overall, the early signs are very encouraging.

 

          Brian Harvey wondered what the success could be attributed to.

 

          David Scott felt that a lot of people want the best seats possible, and they also seem to be ordering a lot more shows.  It appears that changing from the straight subscription basis that has always been in place, has been quite successful.

 

          Brian Harvey added that the “create your own” concept is very appealing, and the strong season line-up doesn’t hurt.

 

3.3     Comparison Statistics

 

          (a)      Professional Artist Presenting Profit/Loss – Fiscal 2004

 

                   David Scott presented comparisons of other municipally owned and operated theatres in the province.  Brampton has a very high loss per seat, at -$575, however, this amount includes a free public festival.  Markham is doing the best, with a profit of $128 earned per seat.  Most theatres look at the programs they present as an investment in the community rather than as a money making business.

 

          (b)      Professional Artist Presenting Financial Performance

 

                   Our overall average profit over the last four years is $41,332.  The occasional profit sharing on a show will reduce this average.  The biggest year to year fluctuation has been in sponsorship revenue, ranging from $192,500 in 2001, to $81,000 in 2004.

Fourth Markham Theatre Board Meeting - 2005,

May 9th, 2005,

Page 4.

 

          (c)      Ticket Price Comparisons

 

                   David Scott explained that when an artist is block booked, everyone pays the same artist fee but some theatres have more overhead.  Our ticket prices are quite similar to other locations.  The determining factor in the cost of a ticket has a lot to do with the community the artist is being presented in.

 

          (d)      Sample Artist Contract and Show Budget

 

                   David Scott explained a sample contract and noted that, in addition to the performance fee, a lot of contracts now include 85% of net gate receipts to include a 15% promoter profit.

 

                   He went on to say that a show budget is prepared for every performance. It shows potential revenues, both fixed and variable expenses, and the show net.  An attempt is made to keep ticket prices comparable but care has to be taken with regard to the 85% profit, which is a fairly new addition to the contracts.  The artists are asking for more revenues because of losses due to lower CD sales and music downloading.  The contract for Tower of Power did not have the 85%/15% split, so the theatre actually made $18,000 on the two shows.

 

4.0     ACTION ITEMS

 

5.0     UPCOMING TOPICS

 

6.0     COMMITTEE REPORTS

 

6.1     Sponsorship – Genny Landis, Chair, Neil Fernandez, Pat Kincaid, Jim Jones

 

          Genny Landis advised that the April 14th sponsorship evening had over 100 attendees.  There has been a lot of positive feedback from the event.  The data- base currently contains 200 companies, and each committee member has a contact list of 20.  Neil Fernandez has made inroads with a number of contacts.  The Committee’s main task right now is to obtain new sponsors.  The idea is to build relationships, and they are trying to come up with a sequence of mailings.  Contact only once a year is not good enough.  The next idea is an employee recognition program.  Unfortunately, Maxine Houghton has recently resigned from the Board, leaving the Committee short-handed.

 

          In response to a question by Jim Jones, David Scott said that in previous years the sponsors secured at this time of the season amounted to more than this year’s $18,000.  The total secured for fiscal 2005 is $53,700, whereas last year it was $98,000.  The fiscal 2005 budget, however, was increased by $25,000 over 2004.  Only two companies have advised that they will not be returning sponsors.

Fourth Markham Theatre Board Meeting - 2005,

May 9th, 2005,

Page 5.

 

          Evelyn Bailey asked that the current list of companies be given to the other Board members so they could check for their own potential contacts.

 

7.0     OTHER BUSINESS

 

          Brian Harvey reiterated the fact that Maxine Houghton has resigned from the Board, effective immediately.

 

8.0     DATE OF NEXT MEETING

 

Monday, May 30th , 2005, 5:30 p.m.

Canada Room, Markham Civic Centre

 

9.0     ADJOURNMENT

 

There being no further business, the meeting adjourned at 6:20 p.m.