Stanford University reports FY2005 financial results

STANFORD, Calif.—Stanford University reported revenues of $2.6 billion for the year ended Aug. 31, 2005 (FY2005). This represents a 12 percent increase over the prior year, with growth in each revenue category. Expenses totaled $2.5 billion, growing 6 percent from FY2004.

In addition, revenues for the Stanford Hospital and Clinics were $1.16 billion and expenses were $1.02 billion. The Lucile Packard Children's Hospital had total revenues of $452 million with expenses totaling $401 million.

The consolidated operating results, along with exceptional investment performance and donor support, contributed to an increase in consolidated net assets of $2.9 billion in FY2005 to end the year at $16.9 billion. Consolidated net assets includes the value of endowment, expendable funds, plant facilities and other assets, less debt and other liabilities for the university and hospitals.

The strong financial performance for both the university and the hospitals enables Stanford to continue investing in its undergraduate educational programs and to introduce innovations in multidisciplinary research and teaching. The university aggressively pursues leading-edge research, especially in high technology and the biosciences, and offers outstanding health care services at its widely recognized hospitals.

Despite the positive financial results, Randy Livingston, vice president for business affairs and chief financial officer, said that the university and hospitals remain mindful of financial challenges facing the university. Among those challenges are the need to renovate or invest in new facilities, tightening of federally sponsored research funding, the continuing unabated escalation of health care costs and volatility in the financial markets. Continued careful management is necessary to protect and grow the university's resources, Livingston said.

"The university's strong results help ensure that Stanford will continue to build its academic initiatives in areas such as the biosciences, environmental sustainability and international peace and security, as well as provide the benefits of an exceptional education to future generations of students," said Livingston.

FY2005 results were reported to the university's board of trustees on Dec. 12. The results are summarized on the Stanford bondholder web pages (http://bondholder-information.stanford.edu) and will be distributed through Stanford's annual report, expected to be published in February.

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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.

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