400 pigg presentation

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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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Questions

Jody PiggAssociate Vice PresidentFinance Practice

(615)[email protected]

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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.