GEORGE L. SPUTH, I1
GEORGIA w o r n C O ~ rnSm -
AUGUST 15, 1978

TABLE OF CONTENTS

Introduction............................................... 1

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Financial Synopsis - First Three Years..................... 14 EVent Attendance Analysis.................................. 16

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21
23

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26 26

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LIST OF FXHTBITS:

. ....... .A-
B

Incame Rental

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17 18-19 20
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Fiscal year 1977-78 was particularly significant in that it was the first full fiscal year of operation in the brief history of the Georgia World Congress Center.
As a new facility in the national and international convention/ tradeshow market, the primary objective for the year was to establish and solidify a high position in the market place. In this respect we believe the Center has had a most successful year. Establishing credibility within the convention/trades~industry during the initial years of developent is essential to the long range success of the facility. We firmly believe great strides have been taken toward insuring the long range success of the Georgia World Congress Center.
Financially, fiscal year 1977-78 must also be considered highly successful. State funds appropriated for operations totaled $500,000.00 in 1977-78 compared to $1,681,451.00 the previous year, a REDUCTION OF $1,181,451.00. Of equal significance, NO APPROPRIATION OF FUNDS was requested for the ccxning year 1978-79.
Initial budget forecasts projected an operating deficit of $274,576.00 for 1977-78. At the close of operations June 30, 1978, an actual operating deficit of $8,118.00 was realized. In other mrds, a NET GAIN of $266,458.00 in actual operations versus forecast operations for the year.
The future appears extremely bright for the Georgia World Congress Center. Current bookings represent in excess of 250 days of major event activity per year through the year 1987 and are continuing to grow. Of even greater significance to the staff, the Center continues to maintain repeat carranitments at better than an 80% rate.
Short range concerns include continued development and professional training within the organization and the never ending battle to stay ahead of inflation. Tnflationary factors will be critical to the financial stability of the Center during the early years and we anticipate substantial difficulty in maintaining a "break even" financial position.
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FINANCIAL ANALYSIS

GENERAL:
A s touched upon b r i e f l y in the introduction, financial projections f o r the year were exceeded by over $266,000. Income projections w e r e surpassed by s m e twenty percent (20%). Conversely, expenditures increased by approximately nine percent (9%) over original projections.

Incoane increases were due primarily t o additional business

w h i l e expenditure increases w e r e necessitated f o r t h e most part to

service t h e new business.

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Exhibit "A" surranarizes projected incme and expenditures compared w i t h actual income and expenditures.

EXHIBIT "A"

I N m:
Rent Food Service (Rich's) Exhibit Utility Services Georgia Hall Parking Miscellaneous State Appropriation Other Reimbursements
EXPENDITURES: Personal Services mlar Operating Equipment Contracts Other

PRcCECED
$ 954,900 237,678

ACTUAL
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$1,110,677 249,536

-0-

140,000 (1)

NOTE:

(1) "Other Reimbursements'' in m u n t of $140,000 represents an expenditure from prior year operating Funds for portable walls in the exhibit hall. The Center anticipates
these funds will & reimbursed from origiml construction funds by the State Department of ~inance-a~dnvesmmts/
Construction Division.

INCOME:
I n m e was realized primarily as projected prior to entering fiscal year 1977-78. Notable increases were realized in the categories of FU3jT and MHIBIT UTILITY SEXVICES. The only category.whichdid not live up to expectations was GEORGIA HALL. An analysis of each major source of income follows:
A. REmxLs:
Total rental income for all activities was $155,777 above projections, an increase of approximately 16%. This increase was realized primarily from the addition of several major events; notably, the International Hi-Fidelity Show, Congress of Beauty and World Fair for Technology.
In addition to the new shows not originally anticipated, rental income was increased through a nurmber of existing shows which experienced unusually large growth in exhibit space requiL-ements. Consequently, rental income from these shows was greater than originally anticipated.
Minor event incane frm -11 meetings, corporate users, auditorium events, etc, was about as anticipated. We believe M s area will continue to grow as small organizations realize their needs can be: well served in the Congress Center.
Exhibit "B" surranarizes major event rentals .and the total of minor'events.