Bruce Telecom President and CEO Mike Andrews told Kincardine Council that the company expects 16 million dollars in revenue, 14.5 million in expenses, and an operating surplus of 1.5 million dollars in 2009.
Bruce Telecom plans to top up its reserves to 600 thousand dollars after using a significant amount for expansion projects over the past year.
One of those new items includes wireless phone service that will be introduced within a few months.
The company wants to be sure it can continue to pay it’s bills and will be requesting up to 750 thousand dollars in overdraft protection at the bank.
Council has agreed to let the company seek the protection.
Mayor Larry Kraemer calls it a reasonable request.
Andrews says cash flows for telephone companies are “lumpy.” Revenues and expenditures don’t happen all at once because of the customer billing cycle. He says the protection is needed so Bruce Telecom can meet its financial obligations and remain a good customer of its suppliers.
Andrews says the overdraft protection is not a request for a loan and adds most telephone companies carry large amounts of debt and Bruce Telecom chooses to avoid that.
He says in 2009, Bruce Telecom will be concentrating on expanding fibre optic service in it’s main network.
