"We experienced an outstanding year artistically and a challenging year financially," board chair Sue Matthews said in a written statement.
More than 236,000 people turned out for the 2003-04 season, which marked the farewell of retiring principal dancer Rex Harrington and featured the debut of a retelling of Cinderella.
Executive director Kevin Garland said box office numbers and funding donations were higher than in previous years, but acknowledged that a deficit had been expected. The company increased spending during the season, hiring additional dancers in preparation for its move to the new Four Seasons Centre in Toronto in 2006. Garland blamed the shortfall in part on decreased government funding for the arts and increased competition for donors.
The ballet will launch a new funding drive later this month.