ROCHESTER PHILHARMONIC ORCHESTRA 2012–2013 ANNUAL REPORT beyond measure. From the Board Chair and President & CEO The 90th Anniversary Season of the Rochester Philharmonic Orchestra in 2012–13 was a year of stark contrasts. Noteworthy advancements in our programming and community engagement were often shrouded by the public controversy surrounding the early termination of our music director’s contract. Financially, the picture was also mixed, with record results for the Annual Campaign offset by under-performance in underwriting support and at the box office. Looking back on the year, it is important to remind ourselves—and those in the Rochester community who care deeply about symphonic music and the RPO—that there was much to be proud of in the organization’s artistic output. Week after week, the extraordinary musicians of the RPO performed exhilarating concerts that brought audiences to their feet. Among the most notable achievements last season were three world premieres: Jeff Tyzik’s Images: Musical Impressions of an Art Museum, commissioned by the Memorial Art Gallery to celebrate its 100th anniversary in 2013; The Freedom Zephyr by the late Eastman School of Music Dean Douglas Lowry, a work commissioned by the RPO and inspired by Rochester’s role in the Underground Railroad; and Water of Life, an RPO commission from the California-based composer Karen Tanaka. Beyond the many free public concerts, concerts for school-age children, and other educational activities that are typical of every RPO season, the Orchestra’s anniversary year also saw us reaching out in exciting new ways to deepen our partnerships with numerous artists and institutions in our region, including: • The City of Rochester, which sponsored an RPO Community Chorus Concert in May featuring 200 community vocalists; • Eastman School of Music’s Young Artists International Piano Competition, whose 2012 Gold Medal winner, Leonardo Colafelice, gave sensational performances of the legendary “Rach 3” piano concerto in the season-ending Philharmonic Series concerts; • Ithaca College, where the RPO launched a new concert series last season; • Rochester City Ballet, which joined the RPO for the world premiere of Jamey Leverett’s choreography to Jeff Tyzik’s New York Cityscape; and • Rochester Contemporary Art Center, whose burgeoning annual “6x6” art show inspired visual artists David Chamberlain and Melissa Matson to create collaborative artworks to encourage increased giving at the Orchestra’s major gift levels. The performance season wrapped up in July with an intensive three-week summer season, highlighted by one of the most successful one-night fundraising events in RPO history: a festive, 1920s-themed 90th Anniversary Gala at 2 the Rochester Riverside Convention Center, featuring a Jazz Age performance by Jeff Tyzik and the RPO. The Year in Numbers After sustaining a sizeable operating loss in 2011–12, the RPO took an important step toward strengthening its bottom line by negotiating and ratifying a new, four-year agreement with the Rochester Musicians’ Association last year. A reduction in the number of contracted weeks, from 39 to 36, helped the organization reduce its operating expenses by about 5.4%, from $9.9 million in 2011–12 to $9.4 million in 2012–13. Unfortunately, revenues also declined last season by 3.7%, from $9.2 million to $8.9 million, with box office and concert fee revenues off 4% and contributed income dropping by 13%. Accelerating the year-over-year declines was a drop of $244,000 or 36% in concert and special project underwriting from corporations, foundations, and individuals. This trend masked one important bright spot in financial performance: the 5,296 donors to the Annual Campaign collectively pushed that vital source of unrestricted operating revenues to an all-time high of $2.329 million, finally surpassing the pre-Recession record level of $2.321 million. Government and net revenues from special events were also up slightly for the year. Taken together, these trends resulted in an operating loss of $544,000 for the year, an improvement over the $746,000 loss the prior year, but nevertheless an unacceptable result that added urgency to the organization’s need to adopt a more sustainable business model. Total unrestricted net assets for the year actually grew by a modest $18,500 as the result of unrestricted investment dollars accessed by the RPO to improve cash flow over the course of the year. Total net assets grew by $417,000, driven by market gains in the RPO’s endowment portfolios. Looking Ahead By the end of the fiscal year on August 31, 2013, the organization’s collective focus was very much on the future. The Music Director Search Committee, led by former Board Chair Ingrid Stanlis, had a well-organized music director search process well under way, and an Operational Sustainability Task Force, chaired by Patrick Fulford, was wrestling with the RPO’s underlying fiscal challenges and exploring every possible strategy for achieving financial stability. Both of these teams were composed of musicians, staff, Board and Honorary Board members, and an Eastman School of Music representative, reflecting the remarkable spirit of cooperation that has long been a hallmark of the RPO’s culture and that will help ensure the success of our path to sustainability in the months and years ahead. Another important sign of our focus on the future was the Board’s authorization last spring of an expansion of the Development Department, a recapitalization that is positioning the organization for vital growth in contributed revenue. Whether you’re a frequent attendee or an occasional concertgoer, a generous donor or a loyal volunteer, we thank YOU for the role you have played in supporting the RPO as it transitioned through a difficult year into a bright, new era of collaboration, community engagement, creative thinking, and forward momentum. For the past 90 years, the RPO has been Rochester’s orchestra, and we remain more committed than ever to the ideals of our founder, George Eastman. Together, we will perpetuate the Rochester Philharmonic’s extraordinary legacy of great performances and service to the community for another 90 years. Dawn F. Lipson Charles H. Owens Chairperson of the Board President & CEO PHOTO CREDITS: Cover photo: Kyle Schwab Dawn Lipson photo: Janice Hanson Charles Owens photo: Walter Colley Images 3 A Year in the RPO SEPTEMBER/OCTOBER The RPO’s 90th Season opened with an evening of music by The Beatles with Jeff Tyzik and Classical Mystery Tour (1), followed the next weekend by music from the RPO’s very first season, including Howard Hanson’s “Nordic” Symphony—which had its U.S. premiere with the RPO in 1923—and a scherzo by Eugene Goossens, the RPO’s music director from 1925–1931. NOVEMBER Principal Pops Conductor Jeff Tyzik’sImages: Musical Impressions of an Art Museum—commissioned by the Memorial Art Gallery to celebrate the Gallery’s 100th anniversary—had its world premiere. Each of the piece’s seven movements was inspired by a different work from the MAG collection (2). 1 DECEMBER Two virtuoso musicians—guest conductor JoAnn Falletta (3) of the Buffalo Philharmonic Orchestra and RPO Concertmaster Juliana Athayde (4)— PHOTO CREDITS: performed Antonio Vivaldi’s timeless Four Seasons. (2) Jacob Lawrence, Summer Street Scene in Harlem (1948). Memorial Art Gallery, Marion Stratton Gould Fund. © 2012 The Jacob and Gwendolyn Lawrence Foundation, Seattle / Artists Right Society (ARS), New York. JANUARY (5-9) Janice Hanson World-famous jazz trumpeter Chris Botti (5) started the new year on a high note with two sold-out performances in Kodak Hall at Eastman Theatre. FEBRUARY Dancers of the Rochester City Ballet (6) joined the RPO for the world premiere of Jamey Leverett’s choreography to Jeff Tyzik’sNew York Cityscape. Tyzik’s musical postcards captured the sounds of New York City in a variety of styles, with each movement linked to a specific location, from Little Italy to Times Square. The RPO’s Black History Month celebration featured the world premiere of The Freedom Zephyr by the Eastman School of Music’s late Dean, Douglas Lowry (7, shown at the pre-concert talk, and 8, center). Inspired by the Underground Railroad, the work included portions of Frederick Douglass’ writings, with Dr. Paul J. Burgett (8, right) of the University of Rochester as narrator. Pittsford native Ward Stare (8, left) made his RPO conducting debut in a program that included Gershwin’s Rhapsody in Blue with pianist Terrence Wilson and William Grant Still’s “Afro-American” Symphony No. 1, which the RPO premiered in 1931. MARCH Conductor Laureate Christopher Seaman (9) returned to Rochester to lead the RPO in music of Dvořák and Schubert, with pianist William Wolfram performing Mendelssohn’s First Piano Concerto. 4 2 3 4 5 6 8 7 9 5 APRIL Singer, pianist, and songwriter Tony DeSare (1) made his RPO debut on a program that also featured the music of Stan Kenton. Also, two up-and-coming musicians joined the RPO, with guest conductor Courtney Lewis (2) leading the orchestra in Beethoven’s “Eroica” Symphony and violinist Corey Cerovsek (3) 2 performing Wieniawski’s Second Violin Concerto. MAY 1 2 Acclaimed percussion ensemble NEXUS (5) joined the RPO with guest conductor Peter Bay (4) for From me flows what you call Time, a percussion concerto by renowned composer Tōru Takemitsu. The program also featured the world premiere of Water of Life by Karen Tanaka—commissioned by the RPO—and a tone poem by French composer Lili Boulanger. JUNE The RPO marked the 100th anniversary of Stravinsky’s masterpiece The Rite of Spring with guest conductor Tito Muñoz (6). The same evenings, Eastman Young Artists International Piano Competition gold medalist Leonardo Colafelice (6) performed Rachmaninoff’s Third Piano Concerto.