An auditors recent financial projections for LUS Fiber has raised some eyebrows. Last Tuesday, Lafayette Consolidated Council learned that LUS Fiber wouldn't be cash positive until the end of 2013, according to an independent auditor.
Terry Huval, director of LUS Fiber says the company is currently cash positive. “We are now profitable beginning February 1, 2012. As we continue to gain new customers, we will still make that 2015 date or maybe be able to beat that date,” says Huval.
The audit report showed that LUS Fiber wouldn't be cash positive until the end of 2013 and fully profitable by 2015. Huval says those numbers are based on last fiscal year's numbers, which ended in October 2011. Huval says to be fully profitable LUS Fiber would have to be able to cover all expenses, pay all its debts and have money to cover the depreciation of assets. “It depends on how much revenue we get and how fast it comes in,” says Huval.
Lorrie Toups, chief financial officer for Lafayette Consolidated Government says LUS Fiber will soon begin to pay into consolidated government's general fund that has problems of its own. As a tax free entity – LUS is to pay into the fund – in lieu of taxes. “The general fund, I know you heard we need to cut the budget. This will help fund police protection, fire services, fire protection, drainage and public works,” says Toups