PROgRAM DESCRIPTIOnS. Friday, July 7, 2006 Profit Mastery for Pharmacy: get Control of Your Business ACPE#: L04 7.

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2 PROgRAM DESCRIPTIOnS Friday, July 7, 2006 Profit Mastery for Pharmacy: get Control of Your Business ACPE#: L hours of CE When you don t know where you are, it s difficult to chart a future course. This hands-on, interactive, case study driven day will take you beyond the basics of financial statement analysis in a sophisticated, decision-relevant format. Working through a real-life pharmacy specific case study, you ll explore specific techniques of strategic financial analysis to learn how to identify and solve the problems that can cause financial distress. You ll learn about financial ratios and how to use them to analyze your company s performance and use them to create positive change for the future. You ll begin to understand what financial statements really tell you about your business and acquire the tools, abilities, and confidence to take action. Yes, financial management can be a dry subject. But your BRS instructor is a skilled facilitator and presenter. He teaches finance in plain English, keeps things simple yet absolutely practical and applicable. In the first part of the day, we ll focus on: 1. Accounting: basics and beyond 2. Understanding your financial position 3. Understanding financial ratios and how to use them to analyze the company s financial performance. 4. Pricing analysis 5. Gross profit margin analysis 6. Return on investment (ROI) 7. Balance sheet management techniques and strategies 8. Industry comparison analysis: how does your business measure up? 9. Tools for active control The afternoon will be devoted to working with your peers to apply the tools learned earlier to analyze a pharmacy s financial performance. In small workgroups, you ll be identifying the company s strengths and weaknesses, showing the owner the financial impact of certain inefficiencies, and developing goals and action plans for the future. You ll leave with specific action plans, worksheets, and tools to apply the same techniques to your own pharmacy. Saturday, July 8, 2006 Profit Mastery for Pharmacy: Chart a Course for the Future ACPE#: L hours of CE

3 Financial management of your pharmacy is more crucial than ever. Where margins are being trimmed by government regulations and myriad reimbursement plans, it is imperative that the focus of successful pharmacy owners be on the overall performance of their stores and on the routine use of available and practical management tools to enhance profitability and cash flow. In this all day session, we will take a specific look at the income statement and balance sheet and introduce two incredible management tools break-even analysis and financial gap analysis. Break-even analysis is the tool that will help you gauge the results of changes in cost and pricing. Using break-even to analyze the present will allow you to make better decisions about the future. Break-even analysis will help you answer questions like: If I buy new equipment, how much do store sales need to increase to cover the costs? If my rent increases or I want to expand, how much do store sales need to increase to cover the costs? How do I determine if a third-party reimbursement contract is good for my business? If I want to reach a specific profit level, how do I determine my sales goal? Most business owners typically spend most of their management energy on the income statement. However, it is often the balance sheet that is the primary driver of cash flow. And it s the balance sheet that most business owners don t understand. So at a time when many pharmacy owners are struggling due to cash flow pressures, we will outline the best tool to focus on cash flow and capital planning to come along in over two decades Financial Gap. This is an unprecedented opportunity to incorporate cash flow discipline to your business while simultaneously squeezing much-needed cash out of the balance sheet. The afternoon will be devoted to working with your peers to use break-even analysis and financial gap analysis to make decisions that typical pharmacy owners must make. You ll leave with specific worksheets and tools to conduct your own break-even and financial gap analysis in your own pharmacy. LEARnIng OBJECTIVES Determine the break-even level in a pharmacy and how to apply break-even analysis through a series of what-if scenarios. Determine necessary sales volume required for expansion, including number of prescriptions required. Evaluate how volume must react to changing third party contribution margins. Determine when it is appropriate to add patient care services. Identify the primary driver of asset increases in an expanding pharmacy. Understand the critical need to consistently monitor financial position. Create a practical process, using ratios, to assess financial performance: identifying strengths, weaknesses and areas of opportunity.

4 SCHEDULE AT A glance July 7, :00 10:00 Introduction and Overview Pharmacy Owner Roles, Responsibilities, and Management Styles The Seven Financial Reasons Pharmacy s Fail The Impact of Sound Financial Management The Working Capital Cycle The Financial Operating Cycle Managing the Cycles More Efficiently 10:00 10:15 Morning Break 10:15 12:00 Monitoring Financial Position Understanding the Income Statement: Taking A New Look The Role of the Balance Sheet: Understanding the Forgotten Statement Using Financial Ratios to Measure Efficiency and Plan For Greater Success Lake s Pharmacy Case Study and Practical Application 12:00 1:00 Lunch 1:00 3:00 Cause & Effect: The Roadmap to a Bigger Bottom Line Using Financial Ratios to Measure Efficiency The Importance of Industry Parameters and Other Financial Guidelines Identifying Financial Distress Seeing the Symptom Identifying the Cause of the Problem, Prescribing A Cure Improving Cash Flow, Profitability, and Operating Efficiencies 3:00 3:15 Afternoon Break 3:15 5:00 The Roadmap: Build Your Bottom-Line Practical Application: Evaluate Lake s Pharmacy Business (case study) Group Exercise: SMART Goal Setting for Lake s Pharmacy Group Exercise: Determine Best Practices for Lake s Pharmacy July 8, :00 10:00 Income Statement: Break-Even Analysis Managing the Income Statement from the Bottom Up Understanding Cost Behavior: Fixed & Variable Cost Patterns Understanding Contribution Margin: Planning for Profits

5 10:00 10:15 Morning Break 10:15 12:00 Income Statement: Break-Even Analysis (continued) Applying Break-Even In Your Pharmacy Analyzing Third-party Reimbursement Plans and Patient Care Services Strategic Application of Break-Even: Cost/Benefit Analysis Lake s Pharmacy Case Study and Practical Application 12:00 1:00 Lunch 1:00 2:30 Planning and Managing Long-Term Growth The Role of the Balance Sheet: Forecasting Capital Needs Financial Leverage and Debt Structure The Cost of Growth: Paying Your Bills and Managing Risk 3:45 4:00 Evaluations and Wrap-up AC NCPA is approved as a provider of continuing education by the Accreditation Council on Pharmacy Education. PE Statements of credit will be available for download by participants within 4 weeks of completion of program. This program will provide up to 15 contact hours (1.5 CEUs) of continuing pharmacy education credit. Target Audience: Pharmacists Refund Policy: For information regarding administrative policies such as complaints and refunds, please contact our offices at For more information regarding the program, call Kathy Hastings or Kelly Cavenah at :30 2:45 Afternoon Break 2:45 3:45 Planning and Managing Long-Term Growth (continued) Planning for Successful Growth Lake s Pharmacy Case Study and Practical Application

6 PROFIT MASTERY FOR PHARMACY Registration form 1-DAY WORKSHOP (JULY 7 OR JULY 8) Please reserve my space at the one-day Profit Mastery Workshop on (Select one) July 7, 2006 July 8, 2006 $395 per person: Includes program materials, continental breakfast and lunch. 2-DAY WORKSHOP (JULY 7 8) Please reserve my space at the two-day Profit Mastery Workshop on July 7-8, 2006 $695 per person: Includes program materials, continental breakfast and lunch. For more information regarding the program, Call Kathy Hastings or Kelly Cavenah at (800) Transportation and Hotel Accomodations Special rates available for participants Radisson Hotel Valley Forge: 1160 First Ave., King of Prussia PA (610) Group Code: NCPA PayMENT INForMaTioN Credit Card information is REQUIRED for payment. Questions? Call Visa Master Card American Express card number exp. date v-code 1 signature

7 Check Enclosed (payable to Business Resource Services) in the amount of $ Please complete the following contact information or enclose your business card participant name(s) pharmacy name pharmacy address (no po box numbers) city state/province zip/ postal code telephone fax primary buying group primary wholesaler Please list all names of attendees, and check all functions they will be attending: attendee name(s) 1-day workshop 2-day workshop Please return by fax at (206) or mail to: Business Resource Services 200 1st Avenue West Suite 301 Seattle, WA Registration Deadline: June 9, Your Verification Code for MC and VISA is a 3-digit number on the back of your card. The full credit card number (or the last four digits) is reprinted in the signature box and at the end of the number is the Verification Code. For AMEX it is a 4-digit number on the front of your card above your credit card number. This number is required for ALL credit card transactions.