400 pigg presentation
TRANSCRIPT
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Board Presentations: Tips & Tools for Presenting Financial Information EffectivelyJody PiggAssociate Vice PresidentFinance Practice
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Day Before Board Meeting
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Board Meeting Day
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Presentation Objectives
Clear, Concise and Consistent Communication that…Creates a common impression of the following:
It’s more about what they hear than what you say!
Opportunity Performance PriorityUrgency
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Presentation “Tools”
Tool 1
Financial Statements
Provides Accountability
Requires a working knowledge of Accounting/ Finance
Allocate 20% of your Presentation time to this Tool
Tool 3
Bullet Statements
Provides Interpretation
States the managerial action plans addressing significant trends
Allocate 30% of your Presentation time to this tool
Tool 2
Graphs, Charts and Metrics
Provides Focused Attention
Visually highlights significant trends
Allocate 50% of your Presentation time to this Tool
Presentation “Tips”
Design Presentation for 10-20 minutes
Give Administrative team members opportunity to comment.
Don’t Bluff or speculate…develop a list of follow up items for next meeting.
Remember…most of your audience are not accountants!
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Presentation “Focus”EBITDA
I tell you what 'ibi dah‘ is. Tank you veddy much!
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EBITDAThe Accountant’s Understanding
Earnings Before Interest, Taxes, Depreciation and Amortization…
So What?
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EBITDAThe Board Trustee Understanding
That’s What!!!
Excess Earnings created from day to day operations available for the following:
Build Cash Reserves
Make Debt Service
Payments
Fund Building,
Equipment and related
Infrastructure needs
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Financial Stability MetricsIt’s all about the BASE, ‘bout the BASE…
Stressed Stable Strong
Cash < 50 Days
50-150 days
> 150 Days
Average Age of Plant > 12 years
8-12 years
< 8 years
Long Term Debt as a %
Total Assets > 50% 25%-50% < 25%
Net Revenues >75% 50%-75% < 50%
Debt Service Coverage < 1.5 times
1.5-3 times
> 3 times
EBITDA <5% 5% - 15% >15%
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Financial Stability MetricsFive Year AverageStressed Stable Strong
Cash 88
Average Age of Plant 10.2 years
Long Term Debt as a %
Total Assets 20%
Net Revenues 48%
Debt Service Coverage 2.4 times
EBITDA 8.6%
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Financial Stability MetricsCurrent Fiscal Year
Stressed Stable Strong
Cash 55
Average Age of Plant 12.1 years
Long Term Debt as a %
Total Assets 32%
Net Revenues 60%
Debt Service Coverage 1.25
EBITDA 2%
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EBITDABuild up the BASE!
EBITDA
Date: 12/15/2014 For
Month 11/30/2014
Hospital: Our Hospital RVP: John DOELocation:
Anywhere, USA AVP: Ricky ROE
RFA: Heidie HOETarget Annual EBITDA $2,000,000
Last Twelve Months EBITDA: $150,000Last Twelve Months EBITDA as of FYE: $190,000
Most significant Initiatives to Improve EBITDA:
Description of Initiative Annual Financial
Impact Current Month's Status update for Initiative
Amount Achieved to
date
% of Initiative Achieved to date
1 Geropsych $1,000,000 Target start date of July 1, 2015 $0 0%
2 100% Participation in Hospitalist Program $1,000,000 Target start date of March 31, 2015 $0 0%
Total of Initiatives $2,000,000 $0 0%
When is expected date for Facility to target EBITDA 12/31/15
What is frequency of oversight meetings/calls with this client Monthly
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The Desired Effect…
Not to “ENCAGE” the Board
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The Desired Effect…
Not to “ENRAGE” the
Board
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The Desired Effect…
But to “ENGAGE” the Board
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Intended for internal guidance only, and not as recommendations for specific situations. Readers should
consult a qualified attorney for specific legal guidance.