Input Capital Corp. Announces Fiscal 2016 Year End Results

REGINA, May 31, 2016 /CNW/ - Input Capital Corp. ("Input" or the "Company") (TSX Venture: INP) (US: INPCF) has released its audited results for the 2016 fiscal year ended March 31, 2016. All figures are presented in Canadian dollars.

FISCAL 2016 HIGHLIGHTS

  • Revenue from streaming contracts of $30.076 million on the sale of 62,244 MT of canola equivalent at an average price of $483 per MT;

  • The Company generated an additional $16.628 million of sales revenue from canola trading for total year to date sales revenue of $46.704 million;

  • Cash operating margin1 from streaming contracts of $26.251 million, or $422 per MT (87.3% cash operating margin);

  • Adjusted net income1 of $4.471 million, or $0.05 per share;

  • Adjusted operating cash flow1 of $25.723 million or $0.32 per share;

  • Invested $35.415 million of upfront payments2 into eighty four streaming contracts, adding thirty two new contracts to the portfolio, the longest of which is a twelve-year contract, adding more than 119,000 MT to the Company's future canola sales; and

  • Finished the year with:
    • Cash and cash equivalents of $24.772 million;
    • Total canola interests (current portion and long-term portion) and other financial assets (herein referred to collectively as "canola interests") of $91.089 million;
    • Multi-year streaming contracts with 94 farm operators, up from 68 a year ago;
    • Total shareholder's equity of $116.022 million; and
    • No debt.

"The growth in Input Capital's business over the last year is very exciting," said President & CEO Doug Emsley. "Input is on the verge of being able to fund our growth on the strength of internally generated cash flow. This is a very significant milestone for our four-year-old company.

"We have always assumed that in any large portfolio such as our streaming portfolio, it would be inevitable that a few contracts would not work out. In spite of the defaults announced in November, recently announced realization results related to the largest contract have helped to confirm and reinforce the strength of the collateral in the security package of our contracts. Agriculture has its ups and downs, but shareholders can rest easy in the knowledge that the Input's capital is well secured."

KEY PERFORMANCE INDICATORS FOR FISCAL 2016 ARE SUMMARIZED BELOW:





CAD millions, unless otherwise noted

Year ended

March 31, 2016

Year ended

March 31, 2015

% Change

Revenue from Streaming Contracts

30.076

11.029

173%

Gross Profit from Streaming Contracts

9.733

2.358

313%

Canola Sold from Streaming Contracts (MT)

62,244

23,923

160%

Average Price per Streaming MT

$483.20

$461.04

5%





Total Gross Capital Deployed2

35.415

48.983

-28%

Total Gross Capital Deployed since inception to end of period2

115.6

80.2

44%

Active Streaming Contracts at end of period

94

64

47%

Canola Reserves (MT)2

280,000

303,000

-8%





Cash operating margin1

26.251

9.160

187%

Cash Operating Margin per Streaming MT1

$421.75

$382.92

10%





Cash margin1

10.001

3.238

209%

Cash Margin per Streaming MT1

$160.67

$135.35

19%





Adjusted Net Income (loss)1

4.471

(0.448)

nmf

Adjusted Net Income (loss) / Share1

$0.05

$0.00

nmf





Adjusted EBITDA1

22.253

4.720

371%

Adjusted EBITDA / Share1

$0.27

$0.06

339%





Adjusted Operating Cash Flow1

25.723

5.510

367%

Adjusted Operating Cash Flow / Share1

$0.32

$0.07

335%

 

KEY PERFORMANCE INDICATORS FOR FISCAL 2016 Q4 ARE SUMMARIZED BELOW:






CAD millions, unless otherwise noted


Quarter ended

March 31, 2016

Quarter ended

March 31, 2015

% Change

Revenue from Streaming Contracts


2.633

3.242

-19%

Gross Profit from Streaming Contracts


0.478

0.671

-29%

Canola Sold from Streaming Contracts (MT)


5,894

7,011

-16%

Average Price per Streaming MT


$446.84

$462.40

-3%






Total Gross Capital Deployed2


11.265

19.097

-41%






Cash operating margin1


2.321

2.639

-12%

Cash Operating Margin per Streaming MT1


$393.90

$376.44

5%






Cash margin1


0.746

1.005

-26%

Cash Margin per Streaming MT1


$126.59

$143.41

-12%






Adjusted Net Income (loss)1


(0.449)

(0.659)

32%

Adjusted Net Income (loss) / Share1


$0.00

$0.00

0%






Adjusted EBITDA1


0.927

0.451

105%

Adjusted EBITDA / Share1


$0.01

$0.01

105%






Adjusted Operating Cash Flow1


0.581

(0.040)

nmf

Adjusted Operating Cash Flow / Share1


$0.01

$0.00

nmf

 

REVENUE

For fiscal 2016, canola streaming revenue increased to $30.076 million on the sale of 62,244 MT, up from $11.029 million on the sale of 23,923 MT of canola equivalent in fiscal 2015. Sales from canola trading increased by 100% from $8.309 million to $16.628 million in fiscal 2016.

During fiscal 2016, Input had total annual revenue of $46.704 million, up 142% from total annual revenue of $19.339 million in fiscal 2015.

The 173% increase in revenue from canola streaming during the fiscal year was driven by an expanded portfolio of active streaming contracts, which grew from 68 streams at the end of fiscal 2015 to 94 streams at the end of fiscal 2016.

For the fourth quarter of fiscal 2016, canola streaming revenue was $2.633 million on the sale of 5,894 MT, compared to $3.242 million on the sale of 7,011 MT in fiscal 2015. Sales from canola trading decreased by 49% $5.984 million to $3.043 million in the fourth quarter of fiscal 2016.

During the fourth quarter of fiscal 2016, Input had total revenue of $5.677 million, compared to revenue of $9.226 million in the comparable quarter last year.

The sales from streaming tonnes for the quarter represent a 16% decrease in quarterly volume over the same quarter last year, when the Company sold 7,011 MT of canola equivalent for revenue of $3.242 million. Input sold the majority of its 2015 harvest crop in the second and third quarters of its fiscal year, with sales concentrated between September and December of 2015. The volume sold in the fourth quarter represents the tail end of the Company's canola marketing program, leading to more volume being sold into the cash markets as sales contracts neared completion.

CAPITAL DEPLOYMENT AND STREAMING CONTRACT PORTFOLIO

Gross capital deployed into streaming contracts during the fiscal year was $35.415 million2 during the year, compared to $48.983 million2 during the previous year.

At the end of the fiscal year, Input had total historical gross deployment $115.6 million2, with 94 active streaming contracts in Manitoba, Saskatchewan, and Alberta.

BALANCE SHEET

KEY BALANCE SHEET ITEMS ARE SUMMARIZED BELOW:






Statement of Financial Position 

CAD millions, unless otherwise noted


As at

Mar 31, 2016

As at

Mar 31, 2015

Change

Cash and cash equivalents


24.772

39.598

-37%

Canola interests and other financial assets


91.089

70.651

29%

Total assets


121.000

115.887

4%

Total liabilities


4.978

10.808

-54%

Total shareholders' equity


116.022

105.079

10%

Working capital


60.062

52.821

14%

Debt


-

-

N/A

 

OUTLOOK

The summer months provide a period of preparation for the next annual cycle of the Company's business. After a very significant year of strong cash generation, the Company is preparing to extend its crop collection and marketing plan to even more tonnes from the 2016 crop. Last year's efforts were very effective, and management wants to build on that success.

Collection efforts on the three terminated streaming contracts will continue, with management expecting a full recovery of its capital so that it can be quickly redeployed with other farmers. An equipment auction associated with the Company's first recovery exercise will be held in June. After harvest, the Company will sell the farmland which has come into its possession as a result of collection and recovery efforts. At present, the remaining two recovery efforts remain on track with original expectations, with final resolution expected to take another twelve to eighteen months.

The Company is also preparing for a new capital deployment season, which will kick off in earnest after harvest. The Company has created a new Director of Sales position which will be entirely dedicated to driving capital deployment results alongside a retooled and reenergized sales force. The Company's goal is to maintain a strong growth trajectory as it works to make streaming agricultural production a permanent tool in the financial toolkit of western Canadian farmers.

WEBCAST AND CONFERENCE CALL DETAILS

A conference call will be held on Wednesday, June 1, 2016 starting at 8:30 am Saskatchewan time (10:30 am Eastern time) to further discuss the year end results. To participate in the conference call use the following dial-in number:

Participant Dial in #: (888) 231-8191 (North America Toll Free)
Participant Dial in #: (647) 427-7450 (International)

Webcast URL:
http://event.on24.com/r.htm?e=1176994&s=1&k=163FE8D56C2616CB015E247595D6E6F8

It is recommended that participants dial in five minutes prior to the commencement of the conference call. Soon after the completion of the call, the webcast will be available for download on the Input Capital website at www.inputcapital.com.  

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

ABOUT INPUT

Input is an agriculture commodity streaming company with a focus on canola, the largest and most profitable crop in Canadian agriculture. Input enters into multi-year canola streaming contracts with canola farmers in western Canada. Pursuant to the streaming contract, Input purchases a fixed portion of the canola produced, at a fixed price, for the duration of the term of the contract. Input is a non-operating farming company with a diversified portfolio of canola streams, all of which produce canola and revenue for Input within a year of being signed. Input plans to grow and diversify its low cost canola production profile through entering into additional canola streaming contracts with farmers across western Canada. Input is focused on farmers with quality production profiles, excellent upside yield potential, and strong management teams.

Forward Looking Statements

This release includes forward-looking statements regarding Input and its business. Such statements are based on the current expectations and views of future events of Input's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Input, including risks regarding the agricultural industry, economic factors and the equity markets generally and many other factors beyond the control of Input. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Input undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Non-IFRS Measures

Input measures key performance metrics established by management as being key indicators of the Company's strength, using certain non-IFRS performance measures, including:

  • Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per share;
  • Adjusted Operating Cash Flow and Adjusted Operating Cash Flow per share;
  • Adjusted EBITDA and Adjusted EBITDA per share;
  • Crop Payment per Tonne;
  • Cash Operating Margin and Cash Operating Margin per Tonne;
  • Cash Margin and Cash Margin per Tonne; and
  • Cost per Tonne Acquired and Canola Replacement Ratio.

The Company uses these non-IFRS measures for its own internal purposes. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and these measures may be calculated differently by other companies. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Company provides these non-IFRS measures to enable investors and analysts to understand the underlying operating and financial performance of the Company in the same way as it is frequently evaluated by Management. Management will periodically assess these non-IFRS measures and the components thereof to ensure their continued use is beneficial to the evaluation of the underlying operating and financial performance of the Company, and to confirm that these measures remain useful for comparison purposes to other royalty/streaming companies.  For more detailed information, please refer to Input's Management Discussion and Analysis available on the Company's website at www.inputcapital.com and on SEDAR at www.sedar.com.

________________________

1 Non-IFRS financial measures with no standardized meaning under IFRS. For further information and a detailed reconciliation, refer to "Non-IFRS Measures" in the accompanying MD&A.


2 Includes contracts that were signed but not completely funded at the end of the fiscal year.

 

SOURCE Input Capital Corp.

For further information: Doug Emsley, President & CEO, (306) 347-1024, doug@inputcapital.com; Brad Farquhar, Executive Vice-President & CFO, (306) 347-7202, brad@inputcapital.com

RELATED LINKS
http://www.inputcapital.ca/

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