Luther F. Carson Four Rivers Center 2014 – 2015 Annual Report

Artwork by Bill Ford

Luther F. Carson Four Rivers Center

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The Luther F. Carson Four Rivers Center (Carson Center) is a regional nonprofit performing arts center overlooking the confluence of the Ohio and Tennessee Rivers in Paducah, Kentucky. The “Four Rivers” in the official name refers to the Ohio, Tennessee, Cumberland, and Mississippi rivers and surrounding region. Since the Carson Center opened in February 2004, through June 30, 2015: a total of 1,497,971 people of all ages from every state in the nation have enjoyed performances and events at the Carson Center, one of the most impressive performing arts facilities in the nation. Founders devoted 10 years to dreaming, planning, designing, and raising the funds to build the facility. With its 10-story fly loft and magnificent glass and brick façade – the Carson Center is a landmark in historic downtown Paducah and the cornerstone of a vibrant arts community. The Carson Center is a beautiful, versatile, and comfortable facility with 97,750 sq.-ft. on two levels. The 1,806-seat theatre includes a main floor and two balconies. Superb staging and nonpareil acoustics complement an exquisite venue. The Carson Center mission is “to enhance the quality of life of the adults and children of the Four Rivers region and beyond by providing diverse programming through public and private events that will entertain and educate for years to come.” While most of our audiences come from throughout western Kentucky and parts of Illinois, Missouri, Tennessee, and Indiana – the Carson Center is a gathering place for people from throughout the country, and even other nations. Residents of 35 states and the District of Columbia purchased tickets during our 2014-2015 season. Some of the world’s most accomplished performing artists sing, dance, act, and entertain on our stage. We present a broad variety of performances in our five different series of performances: Broadway, Carson, US Bank Family, Class Acts Education, and Myre. Other presenters increase the number and variety of performances. The Paducah Symphony Orchestra presents its main stage season at the Carson Center, and we consider it our orchestra-in-residence. Educating, entertaining, and inspiring audiences through the performing arts is our primary mission. Beyond that, the Carson Center brings communities together by renting our theatre, lobbies, rooms, and terrace for high school proms and graduations, wedding receptions, seminars, corporate and economic development functions. For more information: Carson Center 100 Kentucky Avenue Paducah KY 42003 (270) 443-9932 thecarsoncenter.org

Statement from the Chairman of the Carson Center Board

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Dear Friend of the Carson Center, Fiscal Year 2015 (our 2014-2015 season) was an exciting year at the Carson Center. Thanks to the support of the community, we finished in the black again. We budget for approximately $654,000 in gifts and sponsorships each year. Carson Center supporters continue to play an important role in our success! We had a memorable year of performances in the Broadway, Myre, US Bank Family, and Carson Series as well as a children’s educational program that is the envy of many larger cities. Our dedicated staff has not only operated our center efficiently, they have increased their workload and helped to manage the convention center. This has improved the bottom line of both facilities. We hope to continue a relationship with the convention center in the future. We should all be grateful for our staff’s efforts - without which we would be unable to have such a beautiful facility and fantastic programming opportunities. Keeping an aging facility and grounds looking up to date and inviting, and maintaining and updating production equipment remain a challenge. We have some examples of numbers from FY 2015 to reinforce this. - Electric bill $199,082 - Facility Maintenance and Enhancement expenses $45,530 Including $8,640 for data enhancement equipment and $7,255 for lighting and sound updates. It costs over $5,000 a day to keep the Carson Center open and running. We also received a welcome challenge in 2016. The Carson-Myre Charitable Foundation offered a restricted gift of $1,000,000 a year for the next 20 years to an endowment fund for the Carson Center. This particular endowment fund is controlled by the foundation and is not accessible to the Carson Center until 2035. The challenge requires the Carson Center Board to raise one half of that amount to add to the existing Carson Center endowment, which is controlled by our Board. Your Carson Center Board voted to try to raise the match upfront through donations including estate planning instruments. This campaign is called Focus on the Future. John Williams Sr. has once again stepped up to lead this effort. I would like to thank everyone for the opportunity to serve as the Chairman of the Board for the Center and on behalf of the Board, thank you for your support of the Carson Center --past and future --without which none of this would be possible. Dr. Harry Carloss Carson Center Chairman

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Board of Directors & Carson Center Staff

2015-2016 OFFICERS: Dr. Harry Carloss, Chair Barry Smith, Immediate Past Chair Paula Bright Connell, Vice Chair Sandra Wilson, Secretary Mike Livingston, At-Large Executive Committee Michael K. Stone, At-Large Executive Committee John Williams Jr. – Ex-Officio Committee Chairs: Investment – Paula Bright Connell Fundraising: Events and Planned Giving – Roy Riley and Barry Smith

Brian J. Laczko, Executive Director Jeff Foreman, Director of Operations Mary Katz, Director of Education & Outreach Lisa Lauck, Director of Marketing Craig Rothwell, Director of Finance Debbie Wattier, Director of Development

2014-2015 BOARD OF DIRECTORS: Dr. Harry Carloss, Chair * Paula Bright Connell, Vice Chair * Michael Byers, Vice Chair * Sandra Wilson, Secretary * C. Lee Anderson Dr. Ted Borodofsky, Chair Emeritus Betty Brockway Basil Drossos Alex Edwards Frances Hamilton Clay Howerton Mike Livingston * Mark Meisenheimer Linda Miller, CPA Tom Mittendorf Don Peck Dona Rains Mariowen Reed Barry Smith, Chair Emeritus Michael K. Stone, Chair Emeritus Mary Taylor Jean L. Truitt * - Executive Committee

Ex-Officio: John Williams Jr. * Judge Van Newberry Mayor Gayle Kaler

2015-2016 Incoming Directors: Roy Riley

Bill Fox, Building Services Manager Andrea James, Box Office Supervisor Rachel Jones, Administrative Assistant Leigh Judd, Box Office Manager Rhonda Lee, Senior Accountant Patti Pearson, Development Coordinator Joe Searcy, Production Manager Chuck Tate, Events Supervisor

CARSON CENTER FULL-TIME STAFF

Directors Emeritus: Dr. Ted Borodofsky, Chair Emeritus Pat Geveden Anne Gwinn Judge J. William Howerton Thomas Matheus (deceased) Jerry Page David Perry Joe Powell Scott Powell Barry Smith, Chair Emeritus Michael Stone, Chair Emeritus John Williams Sr., Chair Emeritus

Statement from the Executive Director of the Carson Center

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As Chairman Carloss stated, the staff of the Carson Center has been extremely busy of late firstly operating this performing arts center but also operating the Paducah-McCracken County Convention Center as well as some staff involvement in our Focus on the Future campaign to solicit endowment funds to meet the Carson-Myre Charitable Foundation challenge, which will keep the Center in a position to maintain the Carson Center for many generations to come.

With those extraneous but necessary diversions, the Carson Center still managed to close Fiscal Year 2015 with a gain from operations and support of $33,327. This makes four years in a row that your Carson Center has finished the year in the black. Our management of the convention center has provided that much needed margin that has allowed us to break even. We hope to remain engaged in the management there.

We continue to aspire to more varied programming, but with no financial margin for error in our programming at present, we have continued a steady diet of mainstream programming. In the Carson Series in FY 2015, we presented reliable and popular artists including the Doobie Brothers, ZZ Top, and the Beach Boys. We also presented unique evenings with Dr. Ben Carson (focusing on children, well before his political campaign), Garrison Keillor, Dancing Pros Live!, and The Price is Right. Combined, those 10 performances in the Carson Series saw a 47% increase in ticket sales versus the year prior. With that success as prologue, we have skewed our programming slightly to attract younger audiences in the current (FY 2016) season with Scotty McCreery and Home Free. It’s rewarding to see those younger faces enjoying themselves here just as their parents and grandparents have done for the past 11 years. Unfortunately, with ticket sales of $596,220, the surplus for the series resulted in it being $15,322 under budget.

The Broadway Series was our first one in which we reduced performances from two back down to one performance per production. The two-night series was no longer tenable; we were invariably seeing losses in the one area where we must see surpluses – our flagship Broadway Series. While there was considerable concern from numerous renewing subscribers moving into this season, we received just nine fewer subscribers overall than our final two-night series season. There was also concern that the quality of the productions for one night would be inferior to that of the former two-night series. That notion was dispelled and we are presenting the same quality of Broadway touring productions. We were extremely successful for a number of years with productions for two performances but not in recent years.

Statement from the Executive Director of the Carson Center (cont.)

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After moving to one night, we experienced just a 10.7% reduction in total Broadway ticket sales while decreasing performances by 45.5% and the resulting expenses by 30.9% year-over-year. The net result was that the Broadway Series profitability increased 3,643% and once more returned to be our largest profit center. All told, its surplus was $35,149 over budget.

Our third season of the faith-based Myre Series experienced a 2.7% increase in ticket sales for which we were pleased. Rhonda Vincent, Sandi Patty, and Guy Penrod were all extremely well-received and those who ventured out for Veritas were gratified and delighted. The Myre Series surpassed budget by $9,461.

The US Bank Family Series increased the number of performances by one production. Year-over-year, this series increased seats sold by 88% and improved ticket revenue by almost 140% while experiencing only a 44% increase in expenses. The series generated a surplus of $68,835, which was $6,261 over budget.

The Class Acts Education Series for pre-school through high school students served 18,514 students. We present programming to complement teaching in the schools to provide value to schools, students, and teachers. With school systems and teachers needing to spend more time in the classroom, we decreased the number of performances by 12. That resulted in only 1,312 fewer tickets sold and reduced expenses by $31,389 while increasing Class Acts Education Series net surplus by 10%, which was $26,435 under budget.

Once again, we had outstanding experiences for all ages in our Carson, Broadway, Myre, Class Acts, and US Bank Family Series. We continue to expand our reach as well as our economic impact through these performances, workshops, and outreach through them all. As mentioned earlier, we are adding performances that appeal to younger audiences. To that end, we have expanded our US Bank Family Series and now have a First Stages mini-series within the Family Series aimed to reach pre-school through kindergarten. Thus far it has been a joy and blessing for all concerned.

A brief look at macro level of the Carson Center reflects continued and meaningful economic impact. From our opening in 2004 through FY 2015, the Carson Center has welcomed almost 1.49 million visitors. The Carson Center cumulative regional economic impact over the last 11 years is $141,588,727. For FY 2015, Total Spending by the Carson Center and its audiences was $11,280,042. The Carson Center generated State Revenue of $1,290,172 and $481,991 in Local Revenue.

Statement from the Executive Director of the Carson Center (cont.)

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Thank you for your continuing support of the Carson Center. Under the aegis of the Carson-Myre Charitable Foundation, our new Focus on the Future campaign will ensure that your regional performing arts center will be here – and in good order – for the next one hundred years. We ask that you seriously consider your bequest or other gift to this endowment campaign. Please remember that the Carson Center needs your ongoing contributions to annual funding (Memberships, sponsorships, fundraising events) - and your subscriptions and ticket purchases this year, next and each year thereafter. Thank you!

Brian Laczko Executive Director

Growth and Investment Results of the Endowment Fund

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Investment results for the period ending June 30, 2015, were moderate at best as the markets gave investors another challenging year. The 12 months resulted in a total return of 2.65%. Ending asset allocation stood with total equities at 57.70%, fixed income at 40.59%, and cash at 1.71%. Performance was positively affected by the returns in the S & P 500 and US stocks in general. Foreign market investments generally detracted from returns with a negative 1.65% return in portfolio assets in that category. Fixed income investments were relatively flat as our portfolio is purposefully short term in nature due to the probability of interest rate increases, returning .06% vs the Barclays Aggregate index at 1.86% during the same time period. The summary of activity in the Fund is as follows: The Maintenance and Enhancement Fund ended the year with a balance of $438,566.00 after distributions of $45,530.00. Items that were purchased included informational monitors, audio console, and paint for walls as well as refinishing the floor in the Myre River Room. Also the A/C chiller was repaired as well as theatrical lighting and computers acquired. Our committee for the year consisted of myself, Molly Blythe, Amy Bramlitt, Alex Edwards, Clay Howerton, and Bill Lentz. Respectfully submitted, Paula Bright Connell Chair, Investment Committee

Beginning Balance Donations/Deposits Transfer Distributions sub-total Adjusted to FMV End Balance

9,728,583 614,843

0 (390,395) 9,953,031 287,382

10,240,413

Giving Opportunities & Sponsorships

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Contributors play a leading role: approximately 25 % of the Carson Center’s annual funding comes from Memberships and other contributions, sponsorships, fundraising events, grants, and other support. Your gifts present nationally and internationally acclaimed performing artists, educate young audiences, and maintain this remarkable facility. Because the Carson Center is a 501(c)(3) nonprofit organization, contributions are tax-deductible to the extent allowed by law. Discover the part you want to play in supporting your Carson Center. Please call Debbie Wattier at (270) 443-9932 to: Start or Renew Your Membership: All Members buy tickets before the public. Benefits, which increase with giving levels, can include invitations to Season Previews, backstage tours, and more. Annual Membership levels range from $50 to $2,500+. Sponsor a Performance, Series of Performances, or Fundraising Event: Businesses, industries, organizations, families, and individuals sponsor: performances, performance series, arts-education projects, and fundraising events. Gain year-round recognition for $1,000 to $15,000 sponsorships. Give to the Endowment: “Set the Stage” for audiences of the future through contributions and bequests to the Carson Center endowment fund.

Name a Seat: Place your name on a seat in the Main Theatre with a one-time gift. Honor family members, friends, or remember loved ones. Opportunities begin at $1,500 on the Main Floor; $1,000 First Balcony; and $500 Second Balcony. Memorial and Honorary Gifts: Comfort a family by making a gift to the Carson Center in memory of a friend or relative. You also can honor individuals or couples by making gifts in their name(s) on birthdays, anniversaries, retirements, graduations, etc.

Setting the Stage for Audiences of the Future

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Through planned gifts to the Carson Center Endowment – you make it possible for future generations to benefit from Carson Center experiences that mean so much to you. An estate planning attorney or financial adviser can help you select the gift plan best for you. To inform us that you have made a bequest to the Carson Center, or to request more information, please call Debbie Wattier at (270) 443-9932. Include a bequest to the Carson Center in your will with this wording: I give _____ dollars (or ____ percent) from my estate to the Luther F. Carson Four Rivers Center (Carson Center), a Kentucky nonprofit 501(c)(3) corporation in Paducah, Kentucky. Encore Society ($5,000 or more to the Carson Center Endowment) Jane Carson Myre and Dr. Louis Myre J. Lane Peck John and Vivian Williams Myrick-Meriwether Family Fund Lucy Robertson O’Mara; Robert W. Robertson Jr., M.D.; George W. Robertson, W. Howard Robertson II – In memory of their parents, Dr. and Mrs. Robert W. Robertson Sr. Dr. Charles and Linda Shields Norman Greenberg, In Memory of Mary Rose Greenberg Dauveen (“Dean”) and Joe Roper James Grisham, In Memory of Jo Grisham The McWaters Family Foundation in Honor of Dr. and Mrs. Louis Myre Paula Bright Connell and Don Connell Tom DeCillis Mary Taylor Clyde Lawter Steve and Anita Bright Dr. John and Fran Kraus Neurological Associates of Western Kentucky Legacy Society (Future gifts, such as bequests) Michael G. Byers Mike and Caroline Cappock Lisa Lauck Clyde Lawter Shirley Trail Lanier Jerry and Sara Page Jan C. and Larry W. Rudolph Jean L. Truitt Anita C. Williams John and Vivian Williams If you have named the Carson Center as a beneficiary, please notify us so that we can include you in the Legacy Society. Requests for anonymity are honored.

Sponsorships & Grants: 2014-2015 Season

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*Sponsors CSI Baptist Health Paducah Paducah & Louisville Railway Jackson Purchase Energy Corporation US Bank AT&T AEP River Operations Atmos Energy Bacon, Farmer, Workman Engineering Banterra Bank Broadway United Methodist Church Bryant Law Center Byrn Funeral Home/Kirk and Natalie Byrn C-Plant Federal Credit Union Chip Wynn Motors City National Bank of Metropolis Credit Bureau Systems Dialog Telecommunications First American Recovery and Recycle Flanary Veterinary Clinic Four Rivers Harley-Davidson Golden Eagle Distributing, Inc. Harper Industries, Inc. Hilliard Lyons / Housman Financial Group Hughes Funeral Home Independence Bank James Sanders Nursery Jean L. Truitt and Family Arts-in-Education Initiatives Linda A. Miller CPA Lourdes MD VIP / Dr. Lee Tolar Meals and Dr. Karen Banister McMurry and Livingston/ Mike and Barbara Livingston Paducah Bank Peel and Holland Roof Brothers Wine and Spirits S.M. Stoller Corporation, Subsidiary of Huntingdon Ingalls Industries Superior Care Home Toyota of Murray United Propane Gas Wagner Wine and Spirits Waterway Ag, Inc. * $1,000 and up

* Grant Support from: Carson-Myre Charitable Foundation City of Paducah Kentucky Arts Council Paducah Convention and Visitors

Bureau Abraham Hall Transformations

Mentoring Program McCracken County Community Career Endowment Rotary Club of Paducah

Carson Center Members

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*This list includes Members at Principal level and above as of June 30, 2015. The Carson Center appreciates every Member.

Producer ($2,500 and up) Kyle Katterjohn Mike and Barbara Livingston Wayne and Dee Morris Sara and Jerry Page Bill and Meredith Schroeder Dr. and Mrs. Charles Shields Mr. and Mrs. Roger Truitt Buddy and Mary Ann Upshaw John A. and Vivian Williams Super Star ($1,500 to $2,499) Sue Chappell Dr. and Mrs. Ruben Cuadrado Thomas DeCillis David and Ann Denton Mr. and Mrs. Joe Framptom Mr. and Mrs. Jeff Holland Mr. and Mrs. Mark (Christy) Meisenheimer Dr. and Mrs. Wally Montgomery Mr. and Mrs. Dwain Taylor Ms. Yvonne Weaver Anita C. Williams Star ($1,000 to $1,499) Genie and Basil Drossos Dr. and Mrs. Patrick (Leigh Ann) Ellison Louis Haas and Tim Haas Judge and Mrs. J. William Howerton Roxy and Larry Jarvis Mr. and Mrs. Gene Katterjohn Mayfield Printing Co., Inc. Kim and Bob Isbell L. V. and Barbara McGinty Peggy Sabel Paxton Mr. and Mrs. R.C. Riley Mr. and Mrs. Mickey (Pamela) Sirls Barry and Amy Smith Mr. and Mrs. Davie Stephens Mr. and Mrs. Millard (Kim) Summarell Tammy West Anonymous

Principal ($500 to $999) Mr. and Mrs. Don (Renie) Barger Dr. and Mrs. Ted Borodofsky Mr. and Mrs. Kirk Byrn, III Joe and Catherine Burkhead Dr. and Mrs. Harry W. Carloss Mr. and Mrs. Jean Crawford Jeff and Sharon Douthitt Elizabeth Edwards Mr. and Mrs. Andy Elliott Wendy Elrod Ann and James Erickson Russell Flood Bill Ford Interiors Drs. Halden Ford and Anita Fleenor-Ford Gene and Roberta Garfield Mr. and Mrs. Ben Green Mr. and Mrs. Gordon (Jane) Griffin Leonard Guyette Mr. and Mrs. Billy Harper Jim and Peggy Horntrop Clay and Darlene Howerton Donald L. Johnson The Honorable W. David King Dr. and Mrs. Robert (Lisa) Kupper Darrell and Renee´ Massey Drs. Landen and Van Meeks Linda A. Miller, CPA Judge Shea Nickell and Dr. Carolyn Watson Nickell Dr. Frederic Park Joe and Nancy Powell Mr. and Mrs. Steve Powless Mr. and Mrs. Paul Quayle Drs. Tim and Jo Ranval Kurt and Gail Ruga Mr. and Mrs. Curtis Runge Mr. and Mrs. Jerry (Linda) Severns Mr. and Mrs. Bill (Patty) Shannon Mr. and Mrs. Rick (Nancy) Sutton Peggy Tripp John and Camille Warden Tony and Nancy Williams Clyde and Carolyn Wills Anonymous (multiple)

Regional Impact in 2014-2015

• Broadway, Carson, Myre & Family Series • 28 Performances • 28, 559 Total Attendees • 16% of Attendees came from beyond a 50-mile radius • Attendees came from 35 states and the District of Columbia

• Class Acts Education Series • 17 Performances • 17,777 Total Attendees • 12% Attendees came from beyond a 50-mile radius

• Use of the Facility • 292 Performances/Events • Examples of Events: Proms & Graduations, Board Meetings & Company

Annual Meetings, Weddings & Receptions, and Concerts

• Overall Demographics & Total Economic Impact based on Americans for the Arts Prosperity Calculator • 112,870 Visitors • Total Expenditures/Industry Impact = $11,212,993* • FTE Jobs = 233.7* • Local Government Revenue = $480,972* • State Government Revenue = $1,287,483*

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Total Expenditures: The total dollars spent by a nonprofit arts and culture organization and its audiences; event-related spending by arts and culture audiences is estimated using the average dollars spent per person by arts event attendees in similarly populated communities.

FTE Jobs: The total number of full-time equivalent (FTE) jobs in your community that are supported by the expenditures made by the arts and culture organization and/or its audiences. An FTE can be 1 full-time employee, 2 half-time employees, 4 employees who work quarter-time, etc.

Government Revenue: The total dollars received by your local and state governments (e.g. license fees, taxes) as a result of the expenditures made by the arts and culture organization and/or its audiences.

*This report presents the findings and calculator from a study conducted in 2007 measuring the economic impact of the nonprofit arts and culture industry in Greater Paducah, KY. It was published by Americans for the Arts in 2008. 13

Class Acts Educational Performances and Outreach