Under AEG Facilities' Management, Los Angeles Convention Center Reports Operational Profit of Over $4.1 Million for Fiscal Year 2014-2015
Aug 5, 2015
Los Angeles, CA (August 5, 2015) For the second consecutive year, the Los Angeles Convention Center (LACC), professionally managed by AEG Facilities, exceeded revenue and operational expectations at the close of its latest fiscal year 2014-2015. In addition to LACC’s financial achievements, significant accomplishments span across all departments and have resulted in improved building efficiencies and increased overall environmental sustainability.
Under the management of AEG Facilities, the LACC has ended this fiscal year, which concluded on June 30, 2015, with an operating profit of over $4.1 million before reimbursing the City of Los Angeles $1.5 million for the Department of Convention & Tourism Development (CTD) overhead. Since taking over management in December 2013, AEG Facilities has generated a total operating profit of approximately $5 million. Moreover, in keeping with convention center management best practices, AEG Facilities set out to build a financial reserve of $2.1 million within the 5 years of its initial management agreement. This goal will be achieved well before the 5 year mark as within only 19 months of managing the LACC, AEG Facilities has added $2 million to the reserve.
Additional financial achievements during fiscal year 2014-2015 include a 43% increase in filming revenue compared to the previous fiscal year, a 4% or $369K increase in parking revenue, and an increase of 11% or $727K in rental revenue compared to the prior year. Aside from building the financial reserve, ending the fiscal year with a significant profit allows AEG Facilities to reinvest in the LACC; a total of $1.284 million has been spent on additional Capital Improvement Projects (CIP) and Alteration & Improvement Projects (A&I).
“For the second year in a row, the LACC has concluded the fiscal year with an operating profit. This is important for the improvement of the facility because it leads to direct spending on vital Alteration & Improvement Projects by AEG Facilities and aligns with our shared goal of transforming the LACC into a truly world-class destination for meetings, conventions, and special events,” noted Bud Ovrom, Executive Director of the Los Angeles Department of Convention & Tourism Development.
The CIP and A&I projects serve to enhance overall client and guest experience at the LACC. Projects include purchasing lobby furniture to better serve guests’ needs during breaks ; replacing 700 toilets with low-flush technology units to further reduce water consumption in the height of California’s drought; upgrading kitchen equipment; and updating concessions areas with new furniture and video boards.
“Beyond AEG Facilities’ meeting the goal of improved fiscal responsibility at the LACC, a collaborative partnership has been established between the CTD and AEG Facilities. This partnership is evidenced by the teams working in tandem to successfully complete $10 million in Capital Improvement Projects this year, which have been imperative to improving building maintenance, security, and overall operations,” commented Jon F. Vein, President, Board of Los Angeles Convention & Tourism Development Commissioners.
CIP projects completed in the past fiscal year include both facility upgrades and preventative maintenance, all the while reducing the venue’s environmental footprint by investing in sustainable products and technology. Elevated maintenance efficiencies have also contributed to significant conservation efforts. For instance, 75 lights have been updated in the newly renovated Theatre, which corresponds to a 77% savings in energy consumption. Next, improved irrigation methods led to an overall reduction of 5% in water consumption and the introduction of a new waste recycling program assisted the facility in achieving a 60% waste diversion rate.
Also, several critical CIPs have improved building safety and streamlined parking operations. In order to heighten building monitoring and security, 186 cameras were installed throughout the facility and the security command center was renovated with state-of-the-art technology significantly improving building surveillance. The parking system in all garages has also been replaced; the upgraded system expedited transaction times during the year’s busiest events, including the heavily attended Anime Expo.
Looking further ahead, the City also approved approximately $10 million in Capital Improvement Projects for the next fiscal year (FY ‘15-16). Budgeted projects include replacing the South Hall lighting system, additional carpet replacement, upgrading security ramp gates, and restroom remodeling.
“The continued investment in improving the venue will propel the LACC to being recognized as an industry leader in operational and service standards. I firmly believe, however, that a talented, dedicated, and diverse staff is the key ingredient for our success. The LACC team embodies these characteristics and has been critical to the success achieved in the first year and a half of managing the LACC,” concluded Brad Gessner, Senior Vice President of AEG Facilities and General Manager of the LACC.
About the Los Angeles Convention Center
The Los Angeles Convention Center (LACC) is one of the most technologically advanced convention and exhibition centers in the world. Operated by AEG Facilities, the LACC attracts more than 2.5 million visitors annually and is renowned internationally as a prime site for conventions, trade shows and exhibitions. An integral economic component to the Southern California area, total sales from client secondary spending tops $1.1 billion annually, generating and sustaining over 12,000 local jobs. LACC is a model environmental-friendly facility, holding the prestigious US Green Building Council’s LEED-EB GOLD Certification. LACC is also a Bronze Level recipient of the California Award for Performance Excellence (CAPE), Eureka Award. For more information, please visit lacclink.com.
About AEG Facilities
AEG, a wholly owned subsidiary of the Anschutz Company, is the leading sports, entertainment and venue operator in the world. AEG Facilities, a stand-alone affiliate of AEG, owns, operates or consults with more than 100 of the industry’s preeminent venues worldwide, across five continents, providing complete venue management, as well as specialized programs in operations, guest services, ticketing, booking, sales and marketing. AEG Facilities also provides resources and access to other AEG-affiliated entities, including live event producer, AEG Live, AEG Global Partnerships, AEG Development, AEG 1Earth, AEG Encore and AEG Creative to support the success of AEG venues and events across the globe. For more information, please visit aegworldwide.com.
Los Angeles Convention Center