Loading...
LTC 272-2007 Miami Beach Convention Center Annual Reportm MIAMIBEACH OFFICE OF THE CITY MANAGER NO. LTC # 272-200 LETTER TO COMMISSION TO: Mayor Matti H. Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: December 7, 2007 SUBJECT: Miami Beach Convention Center Annual Report Attached for your information is the recently produced Annual Report for Fiscal Year 2006/07 for the Miami Beach Convention Center. This document reflects highlights, bookings, and operating results for the year. We are pleased to present this document to reflect one of the most successful years in the history of the Miami Beach Convention Center. Please contact me if you have any questions. JMG:pw Attachment F:cmgr/$all/Itc07/mbcc annual report 07 ~ -~ ~ Q -t "' v c-~ r+~ r- c~ ~ .r,i x cry -v © 3 '*1 T, ~~ T Q1 MIAMIBEACH . convention ~ center annual re~~r~ ~y QE?-Q~ Worldwide Entertainment and Conference Venue Management Table of Contents The Year in Review ......................................................................................................... 2 Exhibit Hall Events ....................................................................................:..................... 4 Meeting Room Events ..................................................................................................... 5 User Survey Results ........................................................................................................ 5 Event Usage Snapshots .................................................................................................. 6 Financial Results ............................................................................................................. 7 Acknowledgement of Officials ......................................................................................... 8 The Year in Review years ago into their current four-hall user configurations. Medical conventions for the American Speech-Language-Hearing Association, American Association of Blood Banks, and American Association of Immunologists enjoyed successful South Beach annual events. We hosted our first national sporting competition booked by the fledgling Miami-Dade Sports Commission, the USA Fencing Summer National Championships. National Council of La Raza welcomed Democratic Presidential frontrunners Hillary Clinton and Barack Obama, and the American Choral Directors Association saw the finest choirs from around the nation visit our destination. Last but not least, we were proud to host the Media Center for Super Bowl XLI, putting the 2 As Fiscal Year 2006-07 draws to a close, we are pleased to report that the Miami Beach Convention Center enjoyed one of its most successful years ever. From revenues to nr~orn~inn rn~~ ~14n nnrJ frr,m nr..+~ ~r..~. r~~... Fi..~ ~r.. r. •.. thousands of journalists here to cover the Indianapolis Colts win over the Chicago Bears in the heart of South Beach, once again proving why South Florida is the ultimate Super Bowl site. The booking calendar also included a listing of social galas occurring at the Center following the lifting of a prohibition of such predominantly meeting room-sized events. We successfully hosted major events for the Miami Art Museum, the Jackson Memorial Hospital Foundation, Big Brothers/Big Sisters, Amigos for Kids, and the Law Enforcement Officer (LEO) Awards. This revision also enabled us to significantly increase our exclusively-meeting room business, with rental revenues for the year exceeding $300,000. The staff of the MBCC continued our work with the City of Miami Beach to help keep the building in top shape. As the year closed, we were within weeks of completing the final phase of our restroom renovation project, which has brought totally new facilities to all 46 public restrooms throughout the Center. We also completed installation of the fourth and final replacement chiller, brinaina increased efficiency to the HVAC systems in the responses climb to 94%, validating our successful efforts to continue to meet and exceed our clients' logistical needs. We also saw Centerplate, our exclusive food and beverage provider, raise their positive response rates to nearly 93%, a significant improvement over the prior year. It is with great pride that we present this overview of our most recent year, and look forward to many more great years at the Miami Beach Convention Center. Doug Tober Senior General Manager 3 ~~~~ Miami Beach Convention Center Events Exhibit Halls Conventions American Association of Blood Banks American Association of Immunologists American Speech-Language-Hearing National Council of LaRaza Association American Choral Directors Association Association of Defense Communities International Congress of Esthetics International Catholic Stewardship Council Trade Shows Jewelers International Showcase (3) International Boatbuilders Exhibition PaperWorld USA IFE America -America's Food & Beverage Show Miami Gift Show (2) Trafik Tradeshow (2) Miami Beach Shoe Market (3) Graphics of the Americas ;t Seatrade Cruise Shipping Convention ~ International Beauty & Barber Show IDEA 2007 Intele-Card News Expo Sysco Sales Meeting &Tradeshow SPESA Expo 2007 Material World Fispal Latino Food Fair & Forum South Florida International Auto Show Antique Jewelry & Watch Show Jobing.Com Career Expo Art Basel Miami Beach The Great Merchandise Sale Hot Import Nights Art Miami Original Miami Beach Antique Show Franchise Expo South Saturn TotalHealth & Fitness Expo Miami International Boat Show i Media Marketing Technology Association of Florida Swimshow erica's Security/Fire Expo Arteamericas Miami Home Design & Remodeling Show (2) Collector Car Auction & Show Exxxotica Miami Beach NBC 6 Health & Fitness Expo South Florida Boat Show DUB Super Series South Florida Home & Family Expo International Gem & Jewelry Show Miami International Wine Fair Tuning Show Latino Other Exhibit Hall Events Miami Art Museum Gala City of Miami Beach Fleet Auction DHS Naturalization Ceremonies (3) NFL Super Bowl XLI Media Center Jackson Memorial Foundation Gala Bots IQ National Robotics Competition Chartered Financial Analyst Exam 4 Liberty of the Seas Banquet Amigos for Kids Celebrity Domino Night USA Fencing Summer Nationals Masiva Union Training -Local 1175 O YOU! Public Shows Miami Beach Convention Center Events Meeting Rooms Alliance for Human Services People to People Student Ambassador Meeting Johnnie Walker Promotional Marketing Event Citizen Systems Training Seminar Miami International Wine Fair TNT/MINT Meeting Gordon Food Service "Rescuers in the Ring" Charity Boxing Event Scion Vehicle Release Children's Cancer Caring Center Holiday Party Shomex Diversity Career Fair City of Miami Beach Passport Applications (3) SPESA Board Meeting Internet Dating ESP Integrative Nutrition Immersion Conference LEO Awards GMCVB Customer Service Seminar Big Brothers /Big Sisters Gala Society of Independent Show Organizers Dinner Moet-Hennessy USA Hitting the Mark American Dance Projekt AOHT Student Conference AMD Spring Tech Tour University of Miami Medical Student Convention CLIO Awards Dodge Car Clinic Project # 2275 -Car Clinic Unidad of Miami Beach Student Training User Survey Results At the conclusion of each event, an online survey is forwarded to our users for their review of our performance. The users are given a choice of Excellent, Good, Fair, or Poor ratings for over 50 different areas of our service at the MBCC. We then group the Excellent and Good responses as positive and the Fair and Poor responses as negative. We are proud that our overall results have continued to improve this year. Positive Negative Sales 98.6% 1.4% Event Management 97.5% 2.5% Building Operations 94.0% 6.0% Telecomm /Internet 87.3% 12.7% Audio Visual 91.2% 8.8% Food & Beverage 92.9% 7.1 Other Services 83.2% 16.8% Overall Impression 97.8% 2.2% Grand Total 92.5% 7.5% 5 Event Usage Snapshots o For the year, we hosted 125 separate events at the MBCC o Of those 125 events, 75 utilized exhibit halls o Those 75 events included 8 conventions, 29 trade shows, 23 consumer shows, and 15 other events o Occupancy percentage for the year was 70.82%, up from 60.55% in FY 2005-06 o Hall D had the highest occupancy at over 76%; Hall A was the least used at 64% o The total attendance for MBCC events across the year was 707,133 o In addition to the above events, we serviced 72 meetings for other City departments o Our largest revenue producing event was the South Florida International Auto Show, which produced over $1.1 million in revenue to our operations Exhibit Hall Occupancy Percentage by Type Other Convention 11% ~ ~ 9% Public Show 31% Public ___.... 50% Show 34% ition show 38% 6 Exhibit Hall Revenue Percentage by Type Other Convention Financial Results (Unaudited) For the year, the Miami Beach Convention Center exceeded its revenue budget by over $1 million, returning a net operating deficit of $704,822. In accordance with the Management Agreement, when the senior executive compensation expenses are excluded and reallocated to the Management Fee line on the City's financials, the facility showed a $51,159 operating profit. It should also be noted that the below numbers reflect financials for the Miami Beach Convention Center only; the combined financials including the Jackie Gleason Theater, which operated under SMG through June 2007, reflected a Total Net Operating Loss of $428,836 (excluding Executive Compensation), an improvement of $1,067,534 as compared to budget. FY07 FY07 Variance FY06 Actual Budget Actual Income Rentallncome $5,357,599 $4,869,890 $487,709 $4,771,312 Service Income (708,435) (677,534) (30,901) (731,028) Direct Event Income 4,649,164 4,192,356 456,808 4,040,284 Food & Beverage ~ 1,854,432 1,405,672 448,760 1,485,675 Telecommunications 104,138 248,877 (144,739) 274,302 Internet 192,403 160,448 31,955 235,202 Electrical 1,309,551 1,052,502 257,049 998,718 Audio/Visual 35,446 75,172 (39,726) 137,616 Other Ancillary 0 0 0 43,801 Total Ancillary Income ~ 3,495,969 2,942,671 553,298 3,175,314 Total Event Income 8,145,133 7,135,027 1,010,106 7,215,598 Other Operating Income 341,167 266,592 74,575 307,931 Adjusted Gross Income 8,486,300 7,401,619 1,084,681 7,523,529 Expenses Executive 497,961 460,010 37,951 446,824 Finance 655,015 609,408 45,607 591,594 Marketing 104,027 219,444 (115,237) 204,149 Operations 3,364,951 2,902,188 462,763 3,420,759 Event Management 411,844 388,452 23,392 374,385 Client Utilities 23,713 0 23,713 308,809 Sales 348,527 397,632 (49,105) 325,965 Overhead 3,784,904 3,981,012 (196,108) 3,399,975 Total Indirect Expenses 9,191,123 8,958,146 232,977 9,072,460 Net Operating Income /Loss (704,822) (1,556,527) 851,705 (1,548,931) Executive Compensation (755,981) (775,068) 19,087 (768,695) Total Net Operating Income /Loss $51,159 ($781,459) $832,618 ($780,236) 7 Acknowledgement of Officials City of Miami Beach David Dermer, Mayor Matti Herrera Bower, Commissioner Simon Cruz, Commissioner Michael Gongora, Commissioner Saul Gross, Commissioner Jerry Libbin, Commissioner Richard Steinberg, Commissioner Jorge M. Gonzalez, City Manager Hilda Fernandez Assistant City Manager ~ ,t 1 A Convention Center Advisory Boar Randy Heimler, Chairman Jeff Lehman Ec Leon Manne Carole Taran _ ~ ~ ~ Joe For Eva Barreto, ex-officio Hilda Fernandez, ex-officio Ita Moriarty, ex-officio Doug Tober, ex-officio Max Sklar Director, Tourism & Cultural Development SMG yard Levinson Ivor Rose ana (in memoriam) ~~ v iu Wes Westley, President & CEO Bob McClintock, Senior Vice President SMG Convention Centers Doug Tober, Senior General Manager Steve Clark, Director of Operations Kay Hollander, Director of Sales & Marketing 8 Eric Nealy, Assistant General Manager Barbara Gray, Director of Finance Joy Martin, Director of Event Services