Stanford University Reports FY 2012 Financial Results
PALO ALTO, Calif.--(BUSINESS WIRE)-- Stanford University reported its financial results for fiscal year 2012 (FY2012), which ended Aug. 31, 2012. Consolidated net assets increased $1.6 billion, or 6 percent, to end the year at $26.7 billion. Consolidated results include the university, Stanford Hospital and Clinics, and Lucile Salter Packard Children's Hospital at Stanford.
"Record gifts, modest investment returns and increased health care services and other revenues contributed to solid financial results for the university in FY2012," said Randy Livingston, vice president for business affairs and chief financial officer. "Despite positive results over the past few years, Stanford is cognizant of the significant risks and challenges ahead given the current economic environment, the uncertain outlook for federal research funding and the impact of health care reform."
Net assets of the university, excluding the hospitals, increased 4 percent, to $23.5 billion. The university's endowment rose in value by 3 percent over the past year to approximately $17.0 billion. The growth in the endowment resulted from solid investment gains and endowment gifts, offset by the annual payout for university operations. Payout from the endowment increased 11 percent to $871 million in FY2012, after two years of declines implemented during the economic downturn. Endowment payout amounted to 5.3 percent of the endowment value at the beginning of FY2012.
The university ended the year with a surplus from operating activities of $211 million, compared to $257 million in the prior year. Operating revenues were almost $4.0 billion, up $210 million or 6 percent over the prior year. The net assets of the hospitals, which are each separate legal entities, increased $609 million to $3.2 billion in FY2012. The hospitals had a combined surplus from operating activities of $306 million.
FY2012 results were reported to the university's Board of Trustees on Dec. 10 and are posted on the Stanford bondholder web pages (http://bondholder-information.stanford.edu).
Information in this press release contains statements that, to the extent they are not recitations of historical fact, may constitute "forward-looking statements." In this respect, the words "estimate," "project," "anticipate," "expect," "intend," "believe" and similar expressions are intended to identify forward-looking statements. A number of important factors affecting the university's business and financial results could cause actual results to differ materially from those stated in the forward-looking statements.
Lisa Lapin, 650-725-8395
KEYWORDS: United States North America California
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