2003 annual report [2003]

DIRECTOR'S REPORT

2

GEORGIA WORLD

CONGRESS CENTER

3

Revenue & Expense

Statement

5

Estimated Economic

Impact

7

Direct Profit to Georgia

9

GEORGIA DOME Revenue & Expense Statement
Attendance
Estimated Economic Impact
-
CENTENNIAL OLYMPIC PARK Revenue & Expense Statement

11 13 13
15

17

-.~j

19

GWCC AUTHORITY

BOARD OF

GOVERNORS

23

We're the
Georgia World Congress Center
WHERE YOU'RE ALWAYS ON OUR MIND

The Georgia World Congress Center The guest list for the much-anticipated

enjoyedan eventfulFISCAL YEAR 2003, grand opening gala included many

from the grand opening of a 1.4 million- of the center's valued customers,

square-foot Phase IV expansion

welcomed by local and state officials

to the 10th anniversary

and the Atlanta hospitality community

of International

The highlight of the event

Woodworking Fair.

was an announcement

GEORGIA

made by Georgia Gov.

The transition of Phase

VVORLD

Sonny Perdue confirming

IV from a construction

CONGRESS

the selection of the

project to a state-of-the-

CENTER

GWCC and Georgia

art Building C gave the

Dome for the Microsoft

Congress Center an

Global Briefing Meeting in 2004,

additional 420,000-square-feet

bringing an estimated economic

of exhibit space. International

impact of $50 million to the state.

Woodworking Fair became the

The expansion is projected to

largest show ever held at the Georgia generate an additional $1 billion

World Congress Center when it utilized the exhibit halls in the partially completed Phase IV expansion early in the year. Bank Administrative

in economic impact annually and generate $53 million in new tax revenue.

-

, Institute (BAI) was

the first major

event to use the

new 25,700-

square-foot

Georgia Ballroom

during its high

profile event,

featuring keynote

addresses from former New York City

This year, the GWCC hosted nearly 250 different events, from major trade shows to consumer shows to sporting events. Whether a trade show, corporate product launch or a small meeting, our dedicated staff brings the highest level of professionalism, customer service and friendliness to each event,

Mayor Rudy Guiliani and former

ensuring a bright future for

General Electric CEO Jack Welch.

the GWCc.

I3 2003 ANNUAL REPORT

~ORL.D CONC.I~f":$S

The Building C expansion is expected to generate an additional $1 billion in economic impact annually.

RENT, FOOD SERVICE AND UTILITY SERVICES remain the primary sources of operating revenue for the Georgia World Congress Center. When combined, they account for 74 percent of all operating revenue, with rent serving as the largest revenue generator, accounting for 42 percent of the facility's $30,868,814 in total revenue.
Operating revenue fell $2.5 million below budgeted projections, but expenses were cut by $5.8 million. A projected loss of $3.1 million was trimmed to $220,059. "Other" expense items include computer, telecommunications, equipment leases, travel, printing and other minor expenses.

OPERATING REVENUE

Rent

.42%

Exh. Utility Services ..19%

Catering

13%

~ Hotel/MoteL

11%

~ Parking

9%

~Other

6%

FISCAL YEAR 2003 GWCC ATIENDANCE

42 major trade shows and conventions 15 public/consumer shows 184 meetings, corporate events and others*** TOTAL

512,194 494,737 169,994 1,176,925

*** Includes fashion shows, licensing exams, graduation ceremonies, sporting events, concerts and other performing arts productions.

I5 2003 ANNUAL REPORT

OPERATING EXPENSES

Personal Services 63%

Operating

26%

..J ContractsiFees

6%

..J Other

.4%

..J Equipment

1%

OPERATING REVENUE

'13,116,075

Exhibit Utility Services

5,747,667

Catering

4,112,769

3,458,611

2,718,402

1,715,290

SUBTOTAL

'30,868,814

NON-OPERATING REVENUE

Transfers from Reserve

'2,276,299

Contributed Equipment

606,007

SUBTOTAL

~882,306

Hote1lMotei Tax (ACVB) 8,072,484

TOTAL REVENUE $41,823,604

Personal Services
ContractslFee~s --SUBTOTAL Net Operating Gain

$18,555)~~ 7/64,468 263,312 1,803,912 1,009,025
'29,396,282 1,472,532

NON-OPERATING EXPENSES

Contribution to Centennial

Olympic Park

'1,280,834

2,455,917

Hote1lMotel Tax (ACVB) 8,072,484

Net Depreciation Expense 838,146

SUBTOTAL

'12,647,381

TOTAL EXPENSES $42,043,663

GWCC ACTIVITY

"New Dollar" Impact 51,040,871,204

Total Economic Impact 1,718,270,165

Personal Income

666,975,121

Employment

525,432

TAX REVENUES

Georgia Sales Tax __ 539,753,260

Local Sales Tax

29,814,945

Hote1lMotel Tax

21,294,342

Personal Income Tax/Other 30,466,648

TOTAL

S121,329,195

An estimated $1 billion was generated by the 1.2 million visitors to the Georgia World Congress Center.
According to a University of Georgia study conducted by the Selig Center for Economic Growth, these visitors spent "new dollars" in Georgia at restaurants, hotels, retail shops and on entertainment, generating

an economic impact of more than $1.7 billion. Events at the Congress Center sustained 25,432 jobs totaling personal income of $30 million for the state's workforce. The facility generated more than $121 million in state and local tax revenue.

TWO-YEAR ECONOMIC SUMMARY

2002

2003

"New Dollars" Generated

'1,056,756,473

$1,040,871,204

Total Impact of "New Dollars"

1,744,511 ,921

1,718,270,165

State Local Hote1lMotel TOTAL

TAX REVENUES
'65,230,311 29,959,032 18,150,729 1113,340,072

'70,219,808 _29,814,945 21,294,342 1121,329,195

I7 2003 ANNUAL REPORT

The State of Georgia has a vested interest in the Georgia World Congress Center. This year that investment, in the form of paid debt service, totaled nearly $39 million. The return on that investment is significant. The tax revenue generated during Fiscal Year 2003 was over $70 million and the operating profit for the facility was $1.5 million. Subtract the debt service from $71.5 million and the difference is a $32 million direct profit to Georgia. Despite a soft economy, the Georgia World Congress Center continues to generate real dollars for every citizen in the state.

OPERATING REVENUE

OPERATING EXPENSE

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

020.60 22,812,247 23,742,599 31,729,228 30,030,518 35,613,820 33,967,289 39,893,740 29,298,755 30,868,814

--
--~-
---
--
~~
--

19,430,734 19,280,328 19,395,316 22,159,684 25,313,630 27,279,653 25,019,091 27,388,214 26,039,749 29,396,282

~
~
~
=.J
I

OPERAT PROF 89.8 3,531,91 4,347,28 9,659,54 4,716,88 8,334,16 8,948,19 12,595,5: 3,259,00 1,472,53

*Direct Profit to Georgia is calculated by adding the operating profit and the state pro

91 2003 ANNUAL REPORT

TAX REVENUE

DEBT SERVICE

STATE PROFIT

DIRECT PROFIT TO GEORGIA

54,978,682 68,472,099

-
-

~- 23,360,105
24,559,580~ ~

~J 31,618,577
43,912,519

34,208,450
47,444,438
-n

- 46,160,000

27,343,710

"

~

61,854,480 - 27,118,841 -

18,816,290
J 34,735,639

23,-163,5- 73 ,
-- 44,305,183 -

62,548,261 64,490,285 72,846,428
- 79,116,385

--
~
-
-

27,367,073
-- ] 27,777,777 ---~- -
34,418,098
=- _J 44,904,470' h

35,181,188
"
36,71-2,5-08 -
38,428,330
34:211~915.

39,898,-076
45,046,675
~-
- 47,276,528
46,807,441
- _.

65,230,311 70,219,908

-

46,164,521 38,796,511

-, -- 19,065,790 -I 31,423,000

22,324,796 32,895,532

The Georgia Dome hosted everything to Sunday professional football as the

from bull riding competition to the

team's popularity continued to soar

NCAA Women's Final Four to NFL under the leadership of team owner

football during FISCAL YEAR 2003 Arthur Blank. Six other football events

- and the facility experienced internal - the SEC Football Championship,

growth with a number of capital outlay projects

the Corky Kell High
I G E 0 R G I A School Football Classic,

completed or underway.

Do

ME

Atlanta Football Classic, Georgia High School

Inside the Dome, 1 million visitors

Association playoffs, the Peach State

saw $5 million in new technology

Classic and the 35th Anniversary of

upgrade, including two Megavision

the Chick-fil-A Peach Bowl- filled

video boards over each football end the Dome during the fall and

zone, eight LED message boards

winter months.

and new football and basketball

scoreboards. In the spring, Dome

Just a year after hosting the NCAA

officials announced the installation

Men's Final Four, the Women's

of a new artificial playing surface -

Championship Tournament came

FieldTurf - replacing the ll-year-old to the Georgia Dome in April,

Astroturf.

putting the stadium in the national

sports spotlight.

And those weren't the only things new

to the Dome in 2003. Two new events The Dome served as host for more than

came to the Dome, Honda Battle of 43 major events last year and the

the Bands and Professional Bull Riders. staff looks forward to a very bright

Both drew record crowds and will

future as the Falcons popularity soars,

return to the stadium in FY2004.

longtime partnerships

continue to flourish and

Home of the Atlanta Falcons, the

new events find success

Dome welcomed record crowds

at the Georgia Dome.

I 11 2003 ANNUAL REPORT

Two new events came to the Dome last year. Honda Battle of the Bands and Professional Bull Riders drew record crowds and will return to the stadium in FY2004.

Despite a soft economy, the Georgia License agreements from Club Seat

Dome exceeded projected revenues

and Suite holders accounted for

by $8,800 while cutting expenses

nearly 60 percent of the Dome's

during Fiscal Year 2003 by $324,000, resulting in a net profit of $6.8 million.

FY2003 DOME ATIENDANCE

10 Atlanta Falcons Games

-

-

6 Other Football Games

2 Basketball Events

10 Entertainment Events

15 Other Events***

TOTAL

570,830 256,917
60,577 216,345
91,275 1,195,924

*** Includes conventions, corporate events and meetings

I $23 million in operating revenue, followed by rent, sponsorships and parking.

OPERATING REVENUE

License

.57%

__ Rent

18%

UAdvertising

12%

~ Food Services

8%

..J Other

3%

~ Parking

2%

I13 2003 ANNUAL REPORT

OPERATING EXPENSES
IIPersonal Services .50%

o Regular Operating 30%

Contract/Fees

15%

~ Other

.4%

~ Equipment

1%

GEORGIA DOME ACTIVITY

"New Dollar" Impact '121,024,635

Total Economic Impact 197,952,737

Personal Income

78,065,683

Employment

3,291

TAX REVENUES

Georgia Sales Tax

'4,903,595

Local Sales Tax

3,677,697

Hote1lMotei Tax

2,406,133

Personal Income Tax/Other 3,565,949

TOTAL

514,553,374

Home of the 2003 NCAA Women's Final Four Basketball Tournament, the Georgia Dome hosted everything from Falcons Football to Professional Bull Riders to Battle of the Bands, welcoming 1.2 million visitors in Fiscal Year 2003. Those visitors pumped more than $120 million into the state's economy. Based on a study conducted by the University of

Georgia's Selig Center for Economic Growth, that $120 million had a total economic impact of $198 million for the State of Georgia. Activities at the Dome sustained 3,291 jobs totaling personal income of $ 78 million for the state's workforce. The stadium generated more than $14 million in state and local tax revenue.

TWO-YEAR ECONOMIC SUMMARY

"New Dollars" Generated

2002 '119,534,838

Total Impact of "New Dollars"

195,516,127

State Local HoteVMotel TOTAL

TAX REVENUES
'5,144,248 3,858,186 2,026,752 '11,029,186

2003 '121,024,635 197,952,737
'8,468,540 3,677,697 2,406,133 514,553,374

I15 2003 ANNUAL REPORT

Centennial Olympic Park continues

On the Bricks returned for its third

to be the gathering place for downtown year, entertaining thousands with

Atlanta, offering quality family

chart-topping bands performing on

programming, lively concerts, holiday stage. Fourth Saturday Family Fun

fun and a great place to enjoy a little Day, offered April through September,

peace and quiet in the

continues to grow

center of the city.

and this year was

recognized by the

The Park, which opened six years ago, was built as a legacy to the 1996 Centennial Olympic

CENTENNIAL OLYMPIC PARK

Georgia Festival Events Association as the "Best Community Involvement Program

Games, but it has become much

in the State." Atlantans and tourists

more than that to the community.

alike continued to visit Centennial

The 2l-acre green space provides a

Olympic Park for the annual Holiday

wonderful welcome to the 2 million in Lights and ice skating rink, which

guests visiting the Georgia World

has quickly become an Atlanta tradition.

Congress Center and Georgia Dome

and is dedicated to providing quality A catalyst for downtown neighborhood

family programming for the community. development, the Park anticipates a

bright future, as residential properties

During FISCAL YEAR 2003, the

continue to flourish in downtown

Park hosted 150 events, including

and great developments,

85 concerts, 13 film shoots, seven

including the new Georgia

corporate receptions and two

Aquarium and World of

parades. Wednesday WindDown,

Coca-Cola, enhance the

a weekly free concert featuring top

Centennial Olympic

name jazz, R&:B,blues and world

Park neighborhood.

music drew record crowds and

I17 2003 ANNUAL REPORT

The Park hosted 150 events, including 85 concerts, 13film shoots,
seven corporate receptions and two parades.

Situated between the Georgia World Congress Center and the downtown hotel district, Centennial Olympic Park serves as an open-air welcome center for visitors and conventioneers.
An integral part of the GWCCA campus, the Park receives the

majority ofits funding - $1.32 million - from the Congress Center. Food
services, rent and sponsorship account for 90 percent of the $437,359 in operating revenue. A decrease in Park sponsorships and a reduction in the Congress Center contribution resulted in a net loss of $1.4 million.

OPERATING REVENUE

Food Services

.39%

:..J'--II Rent

26%

-.J Sponsorship

26%

-.J Other

6%

-.J Utility

3%

OPERATING EXPENSES

--.J Personal Services ......63% Regular Operating 25%

U Contracts/Fees

9%

-.J Equipment

2%

~ Other

1%

I19 2003 ANNUAL REPORT

OPERATING REVENUE

Food Services

'172,984

Rent

114,342

Sponsorship

112,200

Other

25,378

Utility

12,455

SUBTOTAL

5437,359

NON-OPERATING REVENUE

Transfer from Reserves

'320,556

GWCC Contribution

1,342,440

SUBTOTAL

1,662,996

$2,100,355

Personal Services Regular Operating
guipment ContractslFees
SUBTOTAL

$1,177,813 467,736 32,606 174,727 22,425
'1,875,307

NON-OPERATING EXPENSES

Capital Improvement &. Proiects

'365,401

Net Depreciation Expense 1,241,982

1,607,383

'3,482,690

I

il~n~nF"

'liTl"

"~:'lIIa;r.:

,~

,,~,)-iC(

'tlaT'-

.X"~TiT' oYfTi!lRlI.lmm1,

Stephen R. Leeds Partner
ROGERS AND HARDIN

Bill Archer Executive Vice President GEORGIA POWER COMPANY

David G. Kahn President & CEO KAHN &:. COMPANY,INC.

R. Elliott Caudell President CAUDELL REALTY

Rubye Mims Lucas VP Community Relations TURNER BROADCASTINGSYSTEM,INC.

Mark H. Cohen Partner TROUTMAN SANDERS, LLP

William Porter Payne Partner GLEACHER AND COMPANY

Richard W Cohen, M.D. Surgeon RESURGENS ORTHOPAEDICS

Robert S. Prather Jr. President & CEO BULL RUN CORPORATION

Lewis J. Cooper Chainnan COOPER BARNETT &:. PAGE

C. Jere Sechler Jr. Sole Proprietor SECHLER &:. ASSOCIATES

David M. Franklin Chainnan & CEO FRANKLIN &:. WILSON AIRPORT CONCESSIONS

J. Thomas Vance Partner TISINGER, TISINGER, VANCE
&:. GREER, P.e.

Glenn Hicks III Dir. Business Dev. & Community Relations RBC VENTURA BANK

Monique Walker Chief Operating Officer & General Counsel THE WALKER GROUP

Extraordinary Customer Service

'.... Tif""I ..'
.lIltllI:11.:!. aTeltt.r_
nT,TI':':,' .I:InenU::IrC.
www.centenniaIRarK.com