Financial Highlights

Solid Ground: To experience especially challenging economic times and emerge from the storm better off than before is a tribute to wise stewardship of resources and a steady hand.

graphsThe operating results for the fiscal year ended June 30, 2014 indicate a continued multiyear trend of improvement for the finances of Saint Mary’s College. Primary evidence of this trend is the $29.6 million increase in total net assets for the year.

The College’s net assets total of $236.1 million as of June 30, 2014 is a record level. The net assets total is also well above the pre-recession high of $223.9 million recorded on June 30, 2007.

The $29.6 million increase in net assets can be attributed to a $26.0 million increase in net assets from non-operating activities, resulting primarily from a $19.2 million increase in the market value of the College’s long-term (primarily endowment) investments.

The fiscal year-end market value of endowment investments has grown to $169.3 million as of June 30, 2014, exceeding the pre-recession high fiscal year-end market value of $166.0 million recorded on June 30, 2007.

Endowment growth was driven by an investment return of 19.02 percent for the 12 months ended June 30, 2014. It was also driven by net gifts to the endowment of $3.6 million.

The $29.6 million increase in net assets can also be attributed to $3.6 million in net income from operations for the fiscal year ended June 30, 2014. This net income amount resulted from continued growth in net student revenues as well as growth in most other revenue sources.

Although operating expenses grew by 2.7 percent, they grew at a lesser rate than the 4.3 percent growth rate in operating revenues. The growth in operating expenditures, it should be noted, can be attributed to planned increases in faculty and staff compensation and to strategic expenditures including investments in facilities, programs and technology.

Other financial highlights for the fiscal year ended June 30, 2014 included a revision to stable of the College’s credit outlook by Moody’s Investors Service. The College also modified its direct purchase bond agreement with Bank of America by assigning the bonds to Bank of America Public Capital Corporation in exchange for a lower tax-exempt interest rate and for the extension of the maturity of the bonds to October 2019. The lower tax-exempt interest rate, it should be noted, is expected to save approximately $250,000 per year.

In closing, the fiscal year ended June 30, 2014 represented the continuation of a multiyear improvement in the College’s operating results and financial position and a record level of net assets. It also provided evidence that the College was well positioned to take advantage of conditions in global financial markets to both increase its investment return and to further restructure its long-term debt.

Many of the strategies formulated and implemented by the College to improve operating results and take advantage of global financial markets will continue to be pursued. These strategies include the further diversification of endowment investments, the further simplification and stabilization of the debt structure, and the further investment of funds in strategic initiatives that improve the College’s programs and facilities. Future strategic initiatives, it should be noted, will be further refined and focused with the completion of a new institutional strategic plan during Fall 2014. These continuing and new strategies should help assure that Saint Mary’s College can further improve its financial position as it pursues its mission into the future.