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FY23 Cash Flow Projections

Finance Committee

03/29/23

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This Photo by Unknown Author is licensed under CC BY-SA

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Dec BoD Mtg: FY23 Summary of Key Metrics for Bond Covenant (12/7)

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Key Metrics / Bond Covenant

Current (Nov, 2022)

Dashboard

Our Debt Coverage Ratio is important

  • This is defined as LCPS’s ability to cover our debt service (row H and K on slide 5)
  • Our bond covenant sets this at 1.1

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  • 1.8 debt coverage ratio

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Our Days Cash on Hand is important

  • This is defined as our current cash divided by our operating expenses divided by 365 days (row L to S on slide 5); our daily cash rate is ~$88K
  • Our bond covenant sets our days cash at 45 days

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  • 61 days of cash on hand
  • 56 days “hard” cash on hand as of November(based on current operating activities on slide 6)

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Bond Covenant (June 2023 Projections)

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  • The bond covenant includes cash and 3 months of accounts receivables�
  • 100 days Bond Covenant cash on hand (slide 7)
  • 63 days “hard” cash projected at the end of fiscal year (based on projected operating activities on slide 6)

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TODAY: FY23 Summary of Key Metrics for Bond Covenant (end of Feb close)

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Key Metrics / Bond Covenant

Current (Feb, 2023)

Dashboard

Our Debt Coverage Ratio is important

  • This is defined as LCPS’s ability to cover our debt service
  • Our bond covenant sets this at 1.1

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  • 1.92 debt coverage ratio

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Our Days Cash on Hand is important

  • This is defined as our current cash divided by our operating expenses divided by 365 days; our daily cash rate is ~$88K
  • Our bond covenant sets our days cash at 45 days

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  • 69 days (+8 days) from December) of cash on hand projected for end of year

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  • 70 days “hard” cash on hand as of end of February

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Bond Covenant (June 2023 Projections)

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  • The bond covenant includes cash and 3 months of accounts receivables�
  • 106 days (+6) Bond Covenant cash on hand

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  • 69 days (+6) “hard” cash projected at the end of fiscal year

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FY23 Statement of Cash Flows with Days Liquidity Highlights

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