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Financial Information Effectively Jody Pigg Associate Vice - - PowerPoint PPT Presentation
Financial Information Effectively Jody Pigg Associate Vice - - PowerPoint PPT Presentation
Board Presentations: Tips & Tools for Presenting Financial Information Effectively Jody Pigg Associate Vice President Finance Practice 1 Day Before Board Meeting 2 Board Meeting Day 3 Presentation Objectives Clear , Concise and
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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 Priority Urgency
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Presentation “Tools”
Financial Statements
Provides Accountability Requires a working knowledge
- f Accounting/
Finance Allocate 20% of your Presentation time to this Tool
Bullet Statements
Provides Interpretation States the managerial action plans addressing significant trends Allocate 30% of your Presentation time to this tool
Graphs, Charts and Metrics
Provides Focused Attention Visually highlights significant trends Allocate 50% of your Presentation time to this Tool
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Presentation “Tips”
Design Presentation for 10-20 minutes Give Administrative team members
- pportunity to comment.
Don’t Bluff or speculate…develop a list
- f 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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EBITDA The Accountant’s Understanding Earnings Before Interest, Taxes, Depreciation and Amortization…
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EBITDA The Board Trustee Understanding
Excess Earnings created from day to day
- perations available for the following:
Build Cash Reserves Make Debt Service Payments Fund Building, Equipment and related Infrastructure needs
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Financial Stability Metrics It’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 Metrics Five Year Average
Stressed 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 Metrics Current 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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EBITDA Build up the BASE!
EBITDA
Date: 12/15/2014 For Month
11/30/2014
Hospital: Our Hospital RVP: John DOE Location: USA AVP: Ricky ROE RFA: Heidie HOE Target Annual EBITDA $2,000,000 Last Twelve Months EBITDA: $150,000 Last 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 Pigg Associate Vice President Finance Practice (615)371-4591 Jody_Pigg@qhr.com
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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.