Financial Highlights 2010-11

Pete Michell The finances of Saint Mary’s College are showing signs of recovery from the negative impact of the credit crisis and the recession. Indicators include growth in assets, a decline in short and long-term liabilities, and an increase in operating revenues and expenditures. These factors combined to create a $38.8 million or 25 percent increase in net assets to $194.1 million for the fiscal year ended June 30, 2011. 

Growth in assets reflects increased cash flow from operations, increased contributions from donors for operating and non-operating support, and growth in endowment investments primarily attributed to annual endowment investment performance of 19.2 percent. The decline in liabilities, in turn, reflects a reduction in long-term debt and the lack of borrowing from the College’s line of credit. 

The increase in operating revenues can be attributed to a record number of new undergraduate students in fall 2010, increased retention of returning undergraduate students, increased net tuition revenue from new undergraduate students, and increased net income from graduate and professional programs. Increased operating expenditures can be attributed to enrollment related increases and strategic investments in facilities, programs, and faculty and staff compensation and benefits. 

The 25 percent increase in net assets for the fiscal year ended June 30, 2011 is a very strong indicator that the College is recovering from the credit crisis and recession. Increased enrollments, increased net tuition revenue, increased operating results, increased donor contributions, increased endowment assets, decreased debt, and increased strategic investments in the College’s students, employees and facilities all contributed to the growth in net assets that occurred during the fiscal year. 

Some of the factors that contributed to the growth in net assets for the fiscal year ended June 30, 2011 appear to be present in the fiscal year ahead. Fall 2011 data indicates continued growth in total undergraduate enrollment and growth in net tuition income that will exceed budgeted expectations. 

Based on this encouraging data, the College should be able to continue to make strategic investments and grow its net assets. The College also appears to be well positioned to weather a slow economic recovery and a volatile financial environment for borrowing and investing. 

Respectfully submitted,
Peter A. Michell 
Vice President for Finance and Treasurer