Swift Current Ag & Ex reports operational loss for 2022 as regular activities return
The Swift Current Agricultural and Exhibition Association (Ag & Ex) saw a return to a more regular year of activities in 2022 with an increase in income as well as expenses, but ended the year with an operational loss due to higher costs in certain areas.
Details were revealed during the nonprofit organization's annual meeting at Kinetic Exhibition Park, March 2. Board members presented committee reports and spoke about the different activities hosted during the past year.
Finance Chair Stan Aikens noted that 2022 was a challenging year. The lifting of COVID-19 restrictions made it possible to resume activities, but many people were still cautious to participate in large events.
“While the fair patrons did come back with good numbers, some events saw reduced crowds,” he said. “Increased prices for many services put a strain on our ability to cover our expenses and show a modest profit. As such, our net loss from operations for 2022 was $24,676.”
Most of the activities and events hosted during 2022 had a profit. Overall revenue increased from $466,963 in 2021 to $811,460 in 2022. Expenses were also higher due to costs related to activities. Overall expenses increased from $436,920 in 2021 to $836,136 in 2022.
“Our overall revenues from events in 2022 were up substantially over the previous as we returned to pre-COVID delivery of programs and events,” he said. “That left us with a net revenue of $197,591 from the events we put on.”
Insurance costs increased substantially in 2022. Wages and benefits were also higher, because the Ag & Ex had a full complement of staff and summer students to take care of the planning and delivery of programs and events.
He noted that several factors contributed to the operational loss in 2022, of which higher security costs for Frontier Days was a noticeable one.
“Security was substantially higher than we projected, because the local security company, they weren't able to do all the duties this year,” he said. “So we had to hire a company out of Regina and we ended up having to pay them mileage and travel costs and meals and so on. … Our sponsorship wasn't as high as we had hoped for. It's been difficult. A lot of the businesses in town, they're still recovering from COVID. So they're not able to provide as much.”
The organization's overall financial position remained strong, with cash and shortterm investments of $637,495 and liabilities of $142,748. For Aikens the highlight of the past year was to see a return of activities and people attending the events offered by the Ag & Ex.
“Just to see the amount of people out at Frontier Days,” he said. “Our numbers were up. The midway was just pleased at how people came out and enjoyed the rides and entertainment there. And it was an all-time high for us, as far as the number of WeRide passes. … Most of the shows that we put on, the rodeo, Ranchman's and so on, just the number of people that have come out was great. And a lot of the volunteers, they've all come back and again have been there to support us.”
He presented details of the 2023 budget during the annual meeting. Total income is projected to be $823,085 and total expenses will be $860,295. This will result in a net loss of $37,210.
A key factor in this loss will be the need to repay $40,000 of a non-interest loan made available to organizations under the Canada Emergency Business Account (CEBA) as part of the federal government's pandemic support measures.
“Until we put that $40,000 loan repayment in, we were making a small profit,” he said. “That $40,000 would be a one-time shot. Unfortunately, it will have to come out of savings or investments if we don't keep some of the other expenses down.”
He is expecting the Ag & Ex to return to making a profit in 2024 after clearing that loan repayment from their books.
The 2023 budget includes increases on certain expense items such as insurance and contracted services, which might not materialize. That will help their financial bottom line. The Ag & Ex is planning to host a bull riding event in the last summer, which will provide additional revenue.
“It's a new event for us and we're quite excited to be putting that on,” he said. “There seems to be some positive feedback from that in different areas. The people that are looking to put it on are quite excited. They've been doing it in various other communities and so we're quite excited to see what that will bring in. It's another event that we can put on, bring in some entertainers and have a little party atmosphere again.”
They are also hoping to see an increase in sponsorship during 2023 and to apply for available government grants to increase income for the year. The budget includes steps to keep expenses under control, for example reducing spending on advertising and focusing more on using their own social media platforms to inform the public about events.
Two factors might have an influence on their income from admissions in the 2023 budget. It remains to be seen if the expan
sion of provincial sales tax to admission fees for various events will have any impact on ticket sales. In addition, the Ag & Ex made a tough decision to increase the Frontier Days gate admission from $5 to $7.
“It was a very difficult decision,” he said. “That's one thing I've been very staunch on. Rather have it so that people keep coming and hopefully we'll make enough extra on all the other things that we sell and do. And I know it was bounced back several times, whether it be $6 or $7. We figured, OK, it's been 13 years since we've raised the price of gate. So hopefully if we do it now and do $2 we won't have to do it for another 10 years or something like that. That's kind of our idea behind it.”
Aiken added that their budget projections for 2023 are actually factoring in the potential impact of the higher admission fee. Frontier Days attendance was over 24,000 visitors in 2022 and they are projecting around 22,000 visitors in 2023.
“Hopefully no less than that, but you just never know,” he said. “Our biggest concern every year is the weather. Fortunately, over the last several years we've done a lot of things to mitigate some of that by the I-Ride passes, a lot of pre-sales of tickets and so on.”