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Sacramento OperaP.O. Box 161027
Sacramento, CA 95816sacopera.org | facebook
Sacramento OperaAnnual Report 2009
Photo: Sacramento Opera/Eleakis Photography
With the closing of the 2008-2009 season on June 30, we are pleased to report that the Sacramento Opera remains in good financial position, with only a 1.4% shortfall, a modest cash reserve, and subscription ticket renewals for the FY10 season on target. The true accom-plishment here is that we have managed to survive in spite of the worst economy since the Great Depression, and we remain committed to our short and long-term strategies: 1) to strengthen and grow artistically, 2) to broaden and diversify audiences, 3) to deepen the experi-ence of existing audiences, and 4) to expand education and outreach programs and services.
The Year in ReviewTicket sales for the FY2009 season rebounded signifi-cantly, ending with an increase of 37.5% over the previ-ous fiscal year (FY2008) and exceeding the FY2009 budget goal by $23,350. This was due in large part to aggressive single ticket sales for the November produc-tion of The Pirates of Penzance and February’s production of The Marriage of Figaro, both of which reached a host of new audiences through the implementation of our new “word of mouth” marketing and direct mail strategies, funded in part by a generous grant from the James Irvine Foundation. While box office sales for La Bohéme were not as robust as had been predicted, attendance at this popular opera, particularly among single ticket buyers, kept pace with our first two productions. Total atten-dance for all mainstage performances was 17,414,a 25% increase over last year.
Contributed income from individuals and corporate sources managed to remain strong, and as of June 10, 2009, donations exceed last year’s contributions by 1.7%, despite losing several large gifts due primarily to losses in the stock market. These losses directly affected the bottom line, resulting in a 1.4% shortfall for the season.
Sacramento Opera’s outreach activities reached an all time high with a total of 34 activities including Stu-dent Night at the Opera, Opera-tunity Programs in the schools, Coffee and Conversation presentations, and a performance during a Second Saturday Art Walk. Total audience for all outreach activities was 6,152.
In FY2007 and again in FY2008, the Mildred Reis Es-tate made significant contributions to the Sacramento Opera. These funds were placed in a Bequest Account, controlled by the Board of Directors. A portion of the bequest was used for the purpose of eliminating long-term debt, to partially offset the hiring of the Sacramento Opera’s Development Director, and to close the earned income gap created by disappointing ticket sales during the FY2008 season. The Board of Directors has success-fully set aside approximately $200,000 of the original corpus for the purpose of establishing a cash reserve and eventually, an endowment.
Elimination of Long-term DebtDuring the 2009 fiscal year, two very important develop-ments took place that have had a great impact on the Sacramento Opera’s fiscal picture. First, in December 2008, the Sacramento Opera made the final payment of a loan obligation to the City of Sacramento made in 1992. This loan had been in default since the mid 1990s, and in 2003, the organization renegotiated the repay-ment of the loan over a five-year period. Second, the organization received a loan back in the 1990s during one of several financial crises. In March 2009, Wilma P. Laurence, the benefactor, unfortunately passed away. In May, the family notified the Sacramento Opera that the remaining $94,000 had been forgiven, thereby reliev-ing the company of this long-term obligation. These two events have placed the Sacramento Opera in the envi-able position of having eliminated all long-term debt.
The purpose of this report is to give you, our valued stakeholders, a snapshot of our financial position and key activities for the period July 1, 2008 and June 30, 2009. Should there be questions concerning any aspect of this information, you may direct your questions to the attention of Rod Gideons, Executive Director, [email protected] or by calling 916.737.1000.
Sincerely,
Michael E. Chase, President, Board of DirectorsRod Gideons, Executive Director
To Our Partners in Performance
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FY09 Ordinary Income Distribution
2%
FY09 Ordinary Income Distribution
Ticket sales9%
2%
FY09 Ordinary Income Distribution
Ticket sales
Special events
24%
9%
2%
FY09 Ordinary Income Distribution
Ticket sales
Special events
Donations
61%
4%
24%
9%
2%
FY09 Ordinary Income Distribution
Ticket sales
Special events
Donations
Grants
Other
61%
4%
24%
9%
2%
FY09 Ordinary Income Distribution
Ticket sales
Special events
Donations
Grants
Other
61%
4%
24%
9%
2%
FY09 Ordinary Income Distribution
Ticket sales
Special events
Donations
Grants
Other
In FY09, 61% of ordinary income came from ticket sales (subscriptions + single ticket sales). Donations are also a very important part of the company’s income: 24% in FY08.
FY09 Expense Distribution Admin personnel
17%1%
FY09 Expense Distribution Admin personnel
Outside services
Facilities & equipment17%
1%2%
20%
1%
FY09 Expense Distribution Admin personnel
Outside services
Facilities & equipment
Operating
17%
1%2%
3%2%
8%
20%
1%
FY09 Expense Distribution Admin personnel
Outside services
Facilities & equipment
Operating
Fundraising
Marketing
17%
1%2%
3%2%
8%
46%
20%
1%
FY09 Expense Distribution Admin personnel
Outside services
Facilities & equipment
Operating
Fundraising
Marketing
Production personnel
Production costs
17%
1%2%
3%2%
8%
46%
20%
1%
FY09 Expense Distribution Admin personnel
Outside services
Facilities & equipment
Operating
Fundraising
Marketing
Production personnel
Production costs
Other
17%
1%2%
3%2%
8%
46%
20%
1%
FY09 Expense Distribution Admin personnel
Outside services
Facilities & equipment
Operating
Fundraising
Marketing
Production personnel
Production costs
Other
66% of expenses were dedicated to production versus administrative & general operating expenses.
T t l di i t t l O di i
$1,800,000
Total ordinary income vs total expenses Ordinary income
Expense
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Total ordinary income vs total expenses Ordinary income
Expense
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Total ordinary income vs total expenses Ordinary income
Expense
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Total ordinary income vs total expenses Ordinary income
Expense
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Total ordinary income vs total expenses Ordinary income
Expense
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Total ordinary income vs total expenses Ordinary income
Expense
This graph shows the Sacramento Opera’s ordinary income (ticket sales, donations, grants, etc.). Not shown here are special bequests, which are intended to form the seeds for an endowment fund. Income recovered in FY09 (relative to FY08) due to stronger single ticket sales.
$250,000
Individual vs business contributions Individual
Business
$200,000
$250,000
Individual vs business contributions Individual
Business
$100,000
$150,000
$200,000
$250,000
Individual vs business contributions Individual
Business
$0
$50,000
$100,000
$150,000
$200,000
$250,000
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Individual vs business contributions Individual
Business
$0
$50,000
$100,000
$150,000
$200,000
$250,000
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Individual vs business contributions Individual
Business
$0
$50,000
$100,000
$150,000
$200,000
$250,000
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Individual vs business contributions Individual
Business
The generous challenge grants offered by Raley’s contributed greatly to donations in FY05-07. Sacramento Opera needs to work on growing its individual and business contributions in FY10.
Subscription sales and single ticket sales Subscriptions
Single tickets
$400 000
$500,000
$600,000
Subscription sales and single ticket sales Subscriptions
Single tickets
$200,000
$300,000
$400,000
$500,000
$600,000
Subscription sales and single ticket sales Subscriptions
Single tickets
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Subscription sales and single ticket sales Subscriptions
Single tickets
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Subscription sales and single ticket sales Subscriptions
Single tickets
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Subscription sales and single ticket sales Subscriptions
Single tickets
In FY09, single ticket sales had their best year ever at $512K! Subscription sales held steady with FY08. This year’s ticket sales confirmed that last year’s very low ticket sales performance was an anomaly.
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Statement of financial activityfor the 11-month period: July 2008 - May 2009and versus prior year (FY08)
FY09 year-to-date FY08 ORDINARY INCOME (Jul 08 - May 09)
Ticket sales $930,575 $676,898Education & outreach $1,783 $12,890Special events $63,401 $76,070Donations $316,746 $343,027Grants $104,675 $93,178Other $21,639 $39,343
TOTAL INCOME: $1,438,819 $1,241,406
EXPENSE
Admin personnel $263,072 $217,200Outside services $5,000 $22,146Facilities & equipment $27,185 $32,837Operating $42,647 $44,727Education & outreach $7,374 $19,157Fundraising $36,859 $58,215Marketing $137,554 $128,132Production personnel $743,643 $704,952Production costs $316,666 $318,733Other $6,314 $10,978
TOTAL EXPENSE: $1,586,314 $1,557,077
OTHER INCOME (bequest) $85,535 $304,362==============================
NET INCOME: -$61,960 -$11,309
Balance sheet as of: May 31, 2009
ASSETSCurrent Assets
Subscription $ in escrow $164,504Bequest holding account $201,298Other cash $26,091Accounts receivable $0Other current assets $20,551
Total Current Assets $412,444
Fixed assets (net of depreciation) $29,921
TOTAL ASSETS: $442,365LIABILITIES & NET ASSETS
LiabilitiesAccounts payable $49,346Deferred subscriptions/tickets $152,939Deferred revenue (Irvine grant) $35,754Other current liabilities $20,434
Total Current Liabilities $258,473
Long Term LiabilitiesLoan - City of Sacramento $0Loan - Lawrence Trust $94,000
Total Long Term Liabilities $94,000
TOTAL LIABILITIES: $352,473
Net AssetsBequests $689,897Irvine grant $35,754Retained earnings ($613,946)Jul 2008 - May 2009 net income ($21,813)
TOTAL NET ASSETS: $89,892
TOTAL LIABILITIES & NET ASSETS $442,365
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The 2008-2009 season marked a new approach to marketing and public relations, as we integrated word of mouth and social networking strategies—better capital-izing on our current audience both inside and outside of the company. The mantra of “happy customers are your best advertising” invigorated the marketing and public relations program for the year.
Sacramento Opera Web siteThe Sacramento Opera web site was redesigned and launched in September 2009. From September 15, 2008 through June 10, 2009, the Sacramento Opera web site received 80,401 page views and 14,462 unique visi-tors. Visitors came from 69 different countries, with the majority of visitors accessing our site from Sacramento, Carmichael, and San Francisco. Visitors to our web site came via 218 sources, the majority of which were direct (i.e. a user typed in sacopera.org), via google and yahoo; and via referrals through emailbrain.com (our enewslet-ter distribution service), the “share this” button on our web site, stumbleupon.com, and facebook.
TwitterThe Sacramento Opera page on twitter.com was actively launched on February 16, 2009. As of June 17, 2009, 581 people follow us on twitter. Sacramento Opera has the most followers of any arts organization in town.
FacebookThe Sacramento Opera facebook page was launched in mid September 2009. As of June 10, 2009 we have 344 fans on facebook. The majority of our facebook fans are 25 to 44 years old with a growing number of 55+ users.
EmailblastsOur email list has grown 61% this year. As of June 10, 2009, we have 4,574 patron emails in our mailing list. 15 e-newsletters were distributed to our email list through-out the year.
DatabaseOur patron database has grown 21% this season to 14,615 patrons. Name capture improved this season as we consistently offered opportunities for people to join our mailing list at all Sacramento Opera events and at the box office.
Media coverageThe Sacramento Opera received feature article and re-view coverage in publications including, The Sacramento Bee, Outword Magazine, Village Life El Dorado Hills, Lux-Life magazine, Sactown magazine, Sacramento Magazine, The Sacramento Union, the Opera Critic web site, The Gold Country Times, Senior Magazine, Inside Publications, Sacramento News & Review, the Davis Enterprise, AAA’s Via magazine, KFBK, KSJC, and local bloggers such as Twin Soup.
Spreading the wordDirect mail; print advertising in newspapers, magazines, and area arts organizations’ playbills; radio announce-ments; online advertising; emailblasts; ticket giveaways; ticket discounts for select groups; group sales promo-tions, poster display; social networking; and list exchang-es were some of the marketing strategies implemented this season. The Sacramento Opera had 43 promotional partnerships (mainly trade, no cash agreements) with area businesses.
SurveysIn addition to comment cards distributed and collected at all performances, online surveys measuring audi-ence satisfaction via zoomerang.com were sent to ticket buyers after each opera production. With support from a James Irvine Foundation grant, an extensive audience survey was conducted at all La Bohème performances.
Marketing and Public Relations
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Student Night at the OperaThe Pirates of Penzance, Thursday, November 20, 2008The Marriage of Figaro, Wednesday, February 25, 2009La Bohème, Wednesday, May 6, 2009Total student attendance: 1,627
Participating SchoolsCrocker Riverside Elementary SchoolH. Allen Hight Elementary School*Rock Creek Elementary School*Sacred Heart Elementary SchoolSequoia Elementary SchoolArden Arcade Middle SchoolFern Bacon Middle SchoolLouis Pasteur Fundamental Middle SchoolWill Rogers Middle School*Bella Vista High SchoolCapitol Heights AcademyDa Vinci High SchoolDel Oro High SchoolDiscovery High School*El Sereno High SchoolFolsom High SchoolHiram Johnson High SchoolHorizon Charter SchoolJohn F. Kennedy High SchoolJesuit High SchoolLaguna Creek High SchoolLeo A. Palmiter High SchoolMarysville Charter High SchoolMesa Verde High SchoolNatomas Pathways Prep (NP3) High School*New Technology High SchoolThe Met Sacramento High SchoolCrocker Art Museum Youth DocentsAmerican River CollegeSacramento City CollegeSierra CollegeCalifornia State UniversityCalifornia State University College Assistance Migrant Program (CAMP)University of California Davis (UCD)
*Subsidized transportation provided by the James Irvine Foundation
Opera-Tunities for Students!Pre-Student Night Opera TalksParticipating SchoolsH. Allen Hight ElementaryRock Creek ElementaryArden Arcade Middle SchoolBella Vista High SchoolDiscovery High SchoolNatomas Pathways Prep (NP3)Leo A. Palmiter High SchoolTotal attendance: 500
Green Eggs & HamChildren’s opera by Robert KapilowWednesday, May 14, 2009Carrie Hennessey, sopranoRobert Brinzer, pianoRock Creek Elementary School 4th grade classes, Sam & ensembleParticipants: 90 4th gradersTotal attendance: 200
What’s Opera Doc?Sacramento Opera & Crocker Art Museum CollaborativeCurtis Hall, Sierra 2 Community CenterSaturday, January 10, 2009Total attendance: 400
2nd Saturday Community EventSacramento Community Center Theater StageSaturday, May 9, 2009Dan Flanagan, violinistGregory Mason, pianistAlina Ilchuk, sopranoOksana Sitnitska, mezzo-sopranoTotal attendance: 100
2008-2009 Season Highlights
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Coffee & ConversationLois Crowe Patio Terrace (UC-Davis Arboretum)Saturday, September 13, 2008, Davis, CA
Regal Natomas Marketplace 16Saturday, November 8, 2008Saturday, January 10, 2009Saturday, February 7, 2009
Total attendance: 300
Opera InterludesBorders Books & Music, Natomas Blvd.Saturday, July 19, 2008Robin Fisher, guest artist
Borders Books & Music, Fair Oaks Blvd.Saturday, September 13, 2008 Robin Fisher, lyric coloratura soprano
Borders Books & Music, Fair Oaks Blvd.Saturday, February 21, 2009 Ellen Presley, soprano
Borders Books & Music, First Street, DavisSaturday, May 2, 2009 Carrie Hennessey, soprano
Total attendance: 150
Opera TalksScottish Rite Masonic Center of SacramentoWednesday, November 12, 2008 (The Pirates of Penzance)Wednesday, February 18, 2009 (The Marriage of Figaro)Wednesday, April 29, 2009 (La Bohème)
Upstairs Art Gallery, PlacervilleSunday, October 26, 2008 (The Pirates of Penzance)Sherman Clay, RosevilleTuesday, February 17, 2009 (The Marriage of Figaro)
Total attendance: 475
Arts Day at the California State FairPavilion Main Stage, California Expo, SacramentoSaturday, August 23, 2008Carrie Hennessey, sopranoTotal attendance: 400
Metropolitan Opera HD Live BroadcastsRegal Natomas Marketplace 16Salome, Saturday, October 11, 2008Dr. Atomic, Saturday, November 8, 2008Thaïs, Saturday, December 20, 2008La Rondine, Saturday, January 10, 2009Orfeo ed Euridice, Saturday, January 24, 2009Madama Butterfly, Saturday, March 7, 2009La Sonnambula, Saturday, March 21, 2009Total attendance: 2,000
Arias, Overtures, & ArabesquesSacramento Community Center TheaterSunday, September 21, 2008Total attendance: 1,761
The Pirates of PenzanceSacramento Community Center TheaterNovember 21, 23, 25, 2008Total attendance: 5,340
The Marriage of FigaroSacramento Community Center TheaterFebruary 27, March 1 and 3, 2009Total attendance: 5,296
La BohèmeSacramento Community Center TheaterMay 8, 10, and 12, 2009Total attendance: 5,017
Sacramento Opera ContactP.O. Box 1610273811 J StreetSacramento, CA 95816T 916.737.1000F [email protected] us on facebook & twitter!
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