HBS to Release 2004 Annual Report
Thanks to diligent fiscal management and growth from income-producing activities, Harvard Business School finished fiscal year 2004 last June in a strong financial position. Total revenues of $309 million reflected a 5.1 percent increase over the previous year, while operating expenses grew by just 2.8 percent to a total of $294 million. Commenting on the results, HBS chief financial officer Richard P. Melnick (MBA ’92) notes, “The combination of tight fiscal discipline and renewed revenue growth across the School allowed us to make important investments in our strategic priorities and to exceed our targeted cash from operations.”
This year, alumni will receive details of the School’s financial performance in an expanded, annual report format, which will offer a better sense of how HBS financial resources — including gifts from the ongoing $500 million capital campaign — are being used to support the School’s mission. “Our strategic mission and our financial performance are closely linked,” explains Melnick. “HBS faculty continually generate important new ideas and insights, then translate this intellectual capital into new classes, programs, cases, and other materials that, in turn, support the research that leads to new knowledge. Alumni have expressed a keen interest in the progress of these activities, and this year’s report will highlight examples from the past year.”
The report, which is scheduled for release this winter, will show combined revenues from Executive Education and Harvard Business School Publishing of $169 million, an increase of 5.6 percent. These two business operations provide a major source of income to support faculty research, in addition to their critical strategic role in extending the School’s global reach. Revenues from the MBA Program grew by $4 million, to a total of $65 million, due to normal increases in tuition and fees.
Alumni and friends continued to be exceptionally generous in their support of the School. Cash received in gifts totaled a record high $98 million. Donor participation was approximately 30 percent among MBA alumni, sustaining a significant increase from last year. Reflecting strong returns and new endowment gifts, the market value of the HBS endowment and current-use funds increased by 19 percent, to a total of $1.76 billion. Current-use gifts and endowment distribution together generated 21 percent of fiscal 2004 revenues.
The full 2004 annual report will be available at www.hbs.edu/about/financial.html.
