Input Capital Corp. Announces Record Capital Deployment in Q4 Operations Update

REGINA, April 7, 2015 /CNW/ - Input Capital Corp. ("Input") (TSX Venture: INP) (US: INPCF), is releasing its quarterly operations update for Q4 of its 2015 fiscal year, which provides a summary of capital deployed in the acquisition of new multi-year canola streams and a preliminary summary of quarterly canola deliveries for the quarter ending March 31, 2015. The final accounting of quarterly results will be published in Input's year-end financial statements and MD&A when these are finalized and filed in due course.

$20.2 Million Deployed into 35 Canola Streams

During the quarter, Input entered into thirty five canola streaming contracts in Saskatchewan, Alberta and Manitoba for total up-front payments of $20.2 million. As a result, Input more than tripled its total number of canola streams from 15 to 68 over the last fiscal year, successfully expanding into Manitoba and Alberta. 

A summary of the capital deployment for the previous three fiscal years is summarized in the table below:






Fiscal Year

2013

2014

2015

Total

Deployment ($ millions)

Total Number of Streaming Clients

$6.1

5

$25.0

15

$48.9

68

$80.0

68

 

"We are very excited about the progress we have made building our book of canola streams over the past year," said President and CEO Doug Emsley. "Our marketing efforts are paying off, we have expanded into two more provinces, and we are de-risking our portfolio with large numbers of smaller streams spread across a growing geographic area. Streaming is on its way to becoming a standard tool for farmers to flexibly fund their working capital requirements."

These newly announced investments bring Input's total capital deployment to date to $80.0 million in canola streaming contracts with a total of sixty eight farmers.

Near-Term Contracted Volume Summary Based on Current Streaming Contracts






Harvest Year

2015

2016

2017

2018

Projected Base Tonnes

70,000

50,000

50,000

50,000

Average Crop Payment per Base Tonne(1)

$61

$72

$72

$72

 

Record Canola Tonnage Delivered and Sold

Input sold 7,269 metric tonnes ("tonnes" or "MT") of canola during the quarter at an average price of $459 per MT, for quarterly streaming revenue of $3.3 million.

Input also generated $5.7 million in revenue through short-term canola trading contracts with producers.

For the fiscal year ended March 31, 2015, Input sold 24,181 MT of canola at an average price of $459 per MT, for annual streaming revenue of $11.1 million. This represents a year-over-year quadrupling in canola sold and streaming revenue received.

The following table summarizes canola sales for the 2015 fiscal year, compared to the 2014 fiscal year:







Fiscal Quarter

Q1

Q2

Q3

Q4

FY Total

FY2014 Canola Streaming Volume (MT)

--

--

2,646

3,903

6,549


Average Net Realized Price

--

--

$472

$470

$471








FY2015 Canola Streaming Volume (MT)

4,585

4,146

8,182

7,269

24,181


Average Net Realized Price

$493

$463

$441

$459

$459

% Change (in Volume)

--

--

+209%

+86%

+269%

 

Due to rail transportation and system delays, the sale of approximately 11,500 MT of canola from the 2014 crop will be carried over into Input's next fiscal year.

In addition, as a result of poor canola crop results in 2014 in parts of eastern Saskatchewan, Input is working with a few farmers in the region to amend their streaming delivery schedules. It is expected that about 9,400 MT that had been scheduled for delivery from the 2014 crop will be rescheduled into future crop years.

"While we are very happy with Input's growth over the past year, we are not entirely satisfied with the grain system's ability to receive our streamed canola in as timely and predictable a way as we would like," said President and CEO Doug Emsley. "We are developing a new canola marketing plan for the upcoming year with the goal of improving our transportation and logistics in order to make Input's canola deliveries more timely, regular and predictable."

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. Input has multi-year canola streams with sixty eight farmers located across Alberta, Saskatchewan and Manitoba.

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.

(1) 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; 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.

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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