1984-85 annual report [1985]

George L. Smith, II Georgia World Congress Center
ANNUAL REPORT
FISCAL YEAR 1984-1985

Table of Contents

Page Georgia World Congress Center Authority
Board of Governors/Legislative Overview Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Director's Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Financial Overview

Rental Income

6

Exhibit Utility Services........................................................

6

Food Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

State of Georgia - Economic Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Five Year Event Attendance Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12

Staffing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13

Labor Force Analysis and Affirmative Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14

List of Exhibits

A. GWCC Sales Graph. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

B. Statement of Income and Expenditures........................................

5

C. Economic Impact of the Georgia World Congress Center FY 1984-85 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

D. Economic Impact Results - Five Year Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 10

E. Georgia World Congress Center State of Georgia - Economic Benefits Summary. . . . . . . . . . . . . . . . . . . . . . . . . .. 11

F. GWCC Functional Flow Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15

Georgia World Congress Center Authority

BOARD OF GOVERNORS OFFICERS

CHAIRMAN John E. Aderhold President Rayloc Atlanta, Georgia
SECRETARY Joseph W. Robinson President J.W. Robinson & Associates, Inc. Atlanta, Georgia
James Brown President Marketing Services Dalton, Georgia
I. Owen Funderburg President Citizen Trust Bank Atlanta, Georgia
Perry Hudson State Senator, Retired Hapeville, Georgia

MEMBERS

VICE CHAIRMAN
James S. Livingston Chief Executive Officer The Central Bank Swainsboro, Georgia
TREASURER
Emily May Richards Treasurer StudIo Graphics, Inc. Atlanta, Georgia

Luke Morgan Area Supervisor ITT Rayonier Eastman, Georgia

Don Sands President & Chief Executive Goldkist Atlanta, Georgia

Officer

LEGISLATIVE OVERVIEW COMMITTEE

Representative Franklin Horne Representative Lauren McDonald Representative Thomas Triplett Senator Ed Barker Senator Paul C. Broun Senator John Foster

District 104 District 12 District 128 District 18 District 46 District 50

Macon, Georgia Commerce, Georgia Savannah, Georgia Warner Robins, Georgia Athens, Georgia Cornelia, Georgia

2

Fiscal year 1984-85 was a most unusual year for the Georgia World Congress Center. We expected challenges in balancing construction activity on expansion with a record breaking convention and trade show schedule. We also anticipated !!growing pains!! in developing staff and procedures to operate our new and expanded facilities as they came on line. Several unexpected adversities were also taken in stride and actually enhanced the satisfaction gained through meeting these challenges.
To begin our fiscal year, on July 4 a train derailment adjacent to the World Congress Center caused extensive damage to the facility. Fortunately, there were no injuries and no interruption of scheduled activities. On a positive note, funds were subsequently approved to eliminate the rail track involved to preclude any similar situation in the future.
In August construction of the sixth and final exhibit hall was completed in time for the massive International Woodworking Machinery Show. Throughout the remaining fall months, we carefully juggled an extremely heavy event schedule to finish construction of meeting facilities while continuing to provide the level of service our clients have come to expect of the World Congress Center.
An early winter dealt another blow in December and January with the most severe cold weather of this century. Sub-freezing temperatures coupled with exposure from incomplete construction resulted in extraordinary freeze damage to plumbing systems as well as pushed our heating systems- to their limit.
However, on January 14, 1985, the new Thomas B. Murphy Ballroom was inaugurated with one of the most memorable General Assembly Salutes presented to date. In February the Sidney J. Marcus Auditorium was named in honor of the late State Representative from Fulton County, whose support had been instrumental in expansion of the Georgia World Congress Center. To complete Grand Opening festivities, a blacK tie gala was held in the Murphy Ballroom in April honoring some 350 national meeting planners as well as state and local dignitaries.
Fiscal 1984-85 was indeed a most memorable year. In addition to the unusual challenges of completing the expansion project, record attendance and economic benefits were generated. Well over one million visitors attended meetings in the World Congress Center during the year. Of these, over 520,000 were out-of-state visitors, an increase of 23% over the previous year. Out-of-town visitors resulted in a total economic impact in excess of $610 million. Total taxes generated are estimated in excess of $31 million, an increase of approximately $6 million over the previous year.
Future commitments appear to be even more promising. Major convention and trade show reservations approach a 95% level of occupancy through 1990 and are already at a 90% level for the next decade.
Dan Graveline
3

EXHIBIT A
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INCOME:

FY 1983-84

Beginning Adjusted Balance

$ 388,229

Rent

2,541,826

Food Service (MGR)

805,522

Exhibit Utility Services

1,520,176

Georgia Hall

35,032

Hotel/Motel (GWCC)

216,602

Miscellaneous

147,192

SUB-TOTAL

$5,266,350

State of Ga. thru Indus. & Trade Insurance Recovery Hotel/Motel Tax (ACVB) Special Project - Spring Track Construction Acceleration TOTAL
EXPENDITURES:

485,000 100,000 1,083,011
-0-0$7,322,590 --

Personal Services

$3,429,260

Regular Operating

1,558,060

Equipment

45,633

Contracts

89,415

Other

183~

SUB-TOTAL

$5,306,185

Special Project- Spring Track Extraordinary Expenses Construction Acceleration Hotel/Motel Tax (ACVB)

-0104,465
70,000 1,083,011

TOTAL

$6,563,661
--

RESERVE -EQUIPMENT & SUPPLY

REPLACEMENT

$ 251,094

NET PROFIT (LOSS)

$ 507,835

FY 1984-85
$ 507,591
3,565,207
825,599
2,005,971
40,600
504,025
262,731
$ 7,204,133
600,000 437,877 1,512,076 348,000 424,000 $11,033,677

$ 4,762,708

-

2,588,065

52,450

99,917

342,962

$ 7,846,102

348,000 402,075 603,706 1,512,076

$10,711,959

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$ 321,718 5

Rental income from exhibit halls, meeting facilities and miscellaneous equipment represents fifty percent of all self-generated revenues. Overall rental income increased by $1,023,381 or forty percent during FY 85. Exhibit space income rose by forty-one percent, which can be attributed to use of expanded facilities and to greater space requirements by shows experiencing healthy to unusually high growth. Meeting room and auditorium rent exceeded all previous years showing a thirty-six percent increase over last year.

Exhibit Hall Rent Meeting Rooms & Auditorium Rent Miscellaneous Rent TOTAL RENT

FY 1983-84 $2,257,608
217,025 67,193
$2,541,826

FY 1984-85 $3,176,637
295,051 93,519
$3.565,207

Providing electrical service, gas connections, compressed air, water, drains
and telephone instruments to exhibitors continues to be one of the Congress Center's most rewarding operations representing twenty-eight percent of all self-generated revenues. Significantly, a NET INCOME of eighty-three percent was realized through utility service.

In addition to generating income, providing in-house utility services has proven extremely helpful in maintaining a reputation as a facility free from labor problems and exorbitant charges to exhibitors. Today, providing in-house utility service is becoming an industry standard, rather than the exception of a decade ago.

GROSS INCOME EXPENSE
Labor Materials & Supplies
TOTAL EXPENSE

FY 1983-84 $1,520,176
$ 205,630 82,816
$ 288,446

FY 1984-85 $2,005,971
$ 237,364 95,238
$ 332,602

NET PROFIT (LOSS)

$1,231,730

$1,673,369

6

Food Service

GWCC Food Service, operated (34 percent) in total sales during extent due to expenses attributed new facilities.

by MGR, Inc., experienced sUbstantial growth FY 1984-85. Overall profit increased to a lesser largely to start-up costs for staffing and opening

Figures shown here are operational and do not reflect year-end adjustments to reserve accounts as do figures in the Statement of Income and Expenses.

INCOME
Food Sales Beverage Sales Miscellaneous
TOTAL INCOME

FY 1983-84
$2,523,023 597,342 55,129
$3,175,494

FY 1984-85
$3,485,581 667,141 99,192
$4,251,914

EXPENDITURES: Cost of Sales (Product) Wages, Salaries & Related Other Operating Expense TOTAL EXPENSE
NET INCOME

$ 906,626 849,323 563,060
$2,319,009
$ 856,485

$1,131,490 1,442,514 808,145
$3,382,149
$ 869,765

DIVISION OF NET INCOME
MGR Georgia World Congress Center

$ 60,648 795,837
$ 856,485

$ 61,976 807,788
$ 869,764

7

State of Georgia -Economic Benefits

The primary objective of the Georgia World Congress Center is to maximize utilization of the facility by major national and international conventions and trade shows, thus attracting hundreds of thousands of out-of-state visitors who will spend their money in Georgia. In essence, we are in the business of !!importing!! dollars. The resulting private businesses and industries supported by this activity and the overall economic stimulus to the economy of Georgia in general are of top priority, as is accurate reporting of these activities and results.

Therefore, we believe it important and relevant to present a State of Georgia Economic Benefit Report as might be prepared for the state to review the very real net profit or loss from an !!ownership viewpoint.!! The following exhibits go beyond operational figures to include the State's annual investment and tax benefits resulting from World Congress Center activity.

EXHIBIT C: offers estimated economic impact figures for FY 1984-85.

EXHIBIT D: offers a summary of economic impact results for the past five years.

EXHIBIT E:

offers a graphic summary of economic benefits for each year the Congress Center has been in operation and includes NET PROFIT to the State of Georgia by virtue of state tax revenues.

8

EXHIBITC
Economic Impact of the Georgja World Congress Center ~ Fiscal Year 1984-85

CATEGORY Personal Income Retail Sales TOT AL DOLLARS
Employment
Taxes: Retail Sales Concessions Hotel/Motel Personal Income Corporate Income TOTAL TAXES

WORLD CONGRESS CENTER ACTIVITY !!NEW DOLLAR IMPACT!!
$ 67,929,013
299,774,985
$367,703,998

SECONDARY IMPACT
$156,369,589 86,471,095
$242,840,684

TOTAL ECONOMIC IMPACT
$224,298,602
386,246,080
$610,544,682

4,067

6,779

10,846

$ 14,988,719 246,590
5,556,328 1,441,449
321,522 $ 22,554,608

$ 4,323,585
-
3,458,896 771,493
$ 8,553.974

$ 19,312,304 246,590
5,556,328 4,900,345 1,093,015 $ 31,108,582

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Attendance for FY 1984-85 broke the one million mark with 1,066,641 visitors, representing a 29 percent increase over the previous year. Of this total 520,300 were out-of-town visitors, a significant 23 percent increase from the preceding year.
The dramatic increase in out-of-town visitor attendance can be attributed to economic recovery of the convention industry segment of the national economy, as well as, the availability of expanded exhibit facilities able to handle more and larger shows. With full use of expansion, it is projected the coming year will reflect a steady growth in the number of out-of-town visitors attending meetings in the Georgia World Congress Center.

TOTAL ATTENDANCE
!!OUT-OF-TOWN!! ATTENDANCE
* TOTAL DAILY
ATTENDANCE

1980-81 750,258

1981-82 794,8l4

1982-83 794,557

1983-84 827,320

1984-85 1,066,641

369,479

356,879

360,717

423,180

520,300

1,951,065 1,954,671 1,966,887

2,202,655

2,757,616

* !!TOTAL DAILY ATTENDANCE!! is calculated at 4.25 visits per out-of-town visitor
plus one visit for area residents attending seminars or public shows.

12

As of June 30, 1985, the Georgia World Congress Center had 215 authorized full-time positions, of which 187 were rilled, leaving 28 positions to reach full strength for expanded operations. In addition, during the year the Congress Center employed 124,918 man hours of part-time labor, equivalent to approximately 60 full-time personnel at 40 hours per week.
With expanded facilities and staff, our Human Resources personnel and management staff have formalized a professional development program geared to the growing staff at the World Congress Center. We now offer a series of development and training programs to help employees assess their own skills and needs; improve effective communications; set appropriate priorities; improve management skills and techniques; and help employees be more knowledgeable about the World Congress Center and its goals and objectives.
Continuing emphasis on professional development has enabled us to promote employees, which has resulted in relatively low turnover in personnel and allowed our staff to become one of the more effective organizations in the industry. Our success in re-booking 94 percent of the 1984-85 major events and well over 80 percent of all major events can be attributed to the dedication and professionalism of the staff at all levels.
EXHIBIT F is an organizational chart depicting the functional flow of the organization.
13

An objective of the Georgia World Congress Center's Affirmative Action Program is to maintain parity of minorities and women with the Metropolitan Atlanta Area Labor Force in each occupational category and level within each category.

ANALYSIS OF CURRENT WORK FORCE GEORGIA WORLD CONGRESS CENTER

MALE

FEMALE

CAUCASIAN

MINORITY

CAUCASIAN

MINORITY

Number

64

Percentange

34%

66 35%

34 19%

22 12%

ANALYSIS OF METROPOLITAN ATLANTA AREA WORK FORCE

MALE

CAUCASIAN

MINORITY

Number Percentage

51.3,252 44.3%

129,057 11.1%

FEMALE

CAUCASIAN

MINORITY

381,423 33%

133,921 11.6%

Source: Labor Resources Information 1980 State Department of Labor

The Georgia World Congress Center's work force is divided into six occupational categories as defined by the Federal Equal Employment Opportunity Commission:

Officials and Administrators Professionals Protective Services Office and Clerical Skilled Craft Service Maintenance

14

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