On behalf of Glendale Arts, we would like to respond to the June 8 article “Alex Theatre's future is in question,” which focused on the Alex Theatre’s third-quarter financial results.
While the article is factually true, the spin is decidedly negative. It focuses solely on the organization’s cash flow rather than presenting the whole picture of the organization’s activities that were highlighted in the report.
Has the 2011-12 fiscal year been economically challenging? Yes.
It’s been challenging for many businesses, especially those in the nonprofit and arts sectors. Yet, despite these challenges, Glendale Arts has fared well. Rentals in the second and fourth quarters have been strong, helping us make up some ground from a three-month maintenance closure in the first quarter.
As noted in the report, January and February are historically slow months for the theater. The Alex was booked more than 30 days during the third quarter by attracting quality performance groups and events like the Los Angeles Ballet, Los Angeles Chamber Orchestra and Celebrate Dance. The Alex also had several TV and commercial shoots for Comedy Central, the Syfy Channel and Showtime.
Additionally, the Alex hosted seven nonprofit events that helped local organizations like the Glendale Youth Alliance raise funds for their programs and services.
Cash flow can be a troubling issue for any business and is precisely why responsible businesses have reserve accounts. Our organization, like many others, draws from and replaces reserves to ensure the fluidity of the operation. It should also be noted that these reserves were derived from past profits on earned income and programming fees, not public funds.
What is more worrisome for us are the unknown variables related to the elimination of the Redevelopment Agency. While we are optimistic for the future of the Alex, the uncertainty the article suggests has less to do with Glendale Arts’ current fiscal situation and more to do with actions in Sacramento. As it currently stands, the Alex Theatre faces an uncertain future due to politics.
We invite you to review the third-quarter report on your own and feel free to contact Glendale Arts or visit us online at GlendaleArts.org if you have any questions.
Chair, Glendale Arts Board of Directors
Interim CEO, Glendale Arts