[Durham INC] DPAC Exceeds First-Year Financial Expectations

[Blalock, Amy]

CITY OF DURHAM

Office of Public Affairs

101 City Hall Plaza

Durham, NC 27701

 

 

News Release

 

For Details, Contact:

Beverly B. Thompson

Public Affairs Director

(919) 560-4123 x 11229

(919) 475-2362 (cell)

Beverly.Thompson at durhamnc.gov <mailto:Beverly.Thompson at durhamnc.gov> 

 

For Immediate Release:  November 5, 2009

 

Durham Performing Arts Center Exceeds First-Year Financial Expectations

 

DURHAM, N.C. - After only eight months of operation, the Durham
Performing Arts Center (DPAC) earned $401,706 for the City of Durham,
more than four times the first full-year expectations.  

 

That's according to the draft audited financial statement for period
ending June 30, 2009, released today by the City, which owns the
facility.  "That's truly great news for Durham, especially in light of
today's economy," said City of Durham Mayor William V. "Bill" Bell.
"Our first season has been undeniably successful.  The management of
DPAC, in addition to operating in a first-rate facility, has found the
right combination and diversity of performances that attract people from
throughout the region, and the numbers show that."

 

"Nederlander and PFM are pleased with how audiences have quickly
embraced DPAC," said DPAC General Manager Bob Klaus.  "Our mission for
presenting unique, one-of-a-kind live entertainment events has connected
with Broadway, concert, and comedy fans and really established our brand
in the market. When you add to that our reputation for world-class
hospitality, you create an experience for audiences where the biggest
stars shine even brighter when onstage for a DPAC event."  

 

Nederlander and Professional Facilities Management, Inc., operators of
DPAC, specialize in operating performing arts and entertainment
facilities in America and worldwide.  "It's a remarkable achievement for
this public-private partnership to achieve positive results in just its
first eight months of operation.  We are pleased with our first year's
financial results and are proud of our teamwork with the City and the
other important stakeholders and contributors to this project," said
Nick Scandalios, executive vice president of The Nederlander
Organization. 

 

According to the financial statement, the Durham Performing Arts LLC
generated a net income of $1,004,265, of which, pursuant to the
operating agreement with the City, 40 percent, or $401,706, is to be
shared with the City.  Most of the overall income was generated by
ticket sales, rental income, and concessions totaling nearly $7.9
million, with most of the expenses involving stage show costs amounting
to more than $5.6 million.  Other expenses were administrative related
to building operations, including utilities and other operational costs.


During the first year of operation, Nederlander and PFM loaned DPAC
about $100,000 to cover pre-opening and marketing expenses of the
facility, as per the operating agreement.  That amount will be deducted
from the final remittance to the City.

 

The success of DPAC is thanks to a strong public-private partnership,
said Bell.  "The Durham Performing Arts Center is an asset to the City
and the region, and thanks to the support of citizens, visitors, patrons
and sponsors, the facility is something that we all should be proud of.
With the great line up of shows, including Phantom of the Opera and
Wicked for the coming season, it looks like DPAC is well on its way to
continuing its success in 2010," Bell said.

 

To view a copy of the draft audited financial statement, visit the
City's Web site at 
www.durhamnc.gov/departments/manager/pdf/dpac_finance_report_1109.pdf.
For more information about DPAC, visit www.dpacnc.com
<http://www.dpacnc.com/> . 

 

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