Input Capital Corp. Reports Record Q2 Streaming Revenue and Record Q2 Deployment

REGINA, Oct. 7, 2015 /CNW/ - Input Capital Corp. ("Input") (TSX Venture: INP) (US: INPCF), is releasing its quarterly operations update for Q2 of its 2016 fiscal year, which provides a preliminary summary of quarterly canola sales and a summary of capital deployed in the acquisition of new canola streams during the quarter ending September 30, 2015. The final accounting of quarterly results will be published in Input's Q2 financial statements and MD&A when these are finalized and released in due course.

Record Quarterly Revenue from Canola Sales

Input sold a quarterly record of 17,455 metric tonnes ("tonnes" or "MT") of canola equivalent during the quarter at an average price of $488 per MT, for quarterly streaming revenue of $8.5 million.

The sales volume of 17,455 MT compares with 4,146 MT during the same period last year, for an increase of 321% year over year.

On a trailing twelve month (TTM) basis, Input's streaming revenue is up 150% this year over last year at the same time.

The following table summarizes canola equivalent sales for the 2016 fiscal year to date, compared to the 2015 fiscal year:







Fiscal Quarter

Q1

Q2

Q3

Q4

FY Total

FY2015 Canola Streaming Volume (MT)

4,585

4,146

8,182

7,011

23,924

Average Net Realized Price

$493

$463

$441

$465

$462

FY2016 Canola Streaming Volume (MT)

6,079

17,455

--

--

23,534

Average Net Realized Price

$468

$488

--

--

$483

% Change (in Volume)

+33%

+321%

--

--


$7.6 Million in New Capital Deployed

During the quarter, Input signed eight canola streaming contracts for total up-front payments of $7.6 million. One streaming contract is with a new client in Alberta and seven contracts are renewals/expansions in Saskatchewan (6) and Manitoba (1). This brings Input's streaming portfolio to 79 canola streams, an increase of 58 streams from one year ago, and increases Input's canola reserves by  over 22,000 MT.

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







Fiscal Year

2013

2014

2015

2016 to
date

Total

Deployment ($ millions)

$6.1

$25.0

$49.1

$17.5

$97.7

Total Number of Streaming Clients

5

15

68

79

79

Total Canola Reserves (MT)

22,000

134,000

303,000

329,000

329,000

These newly announced investments push Input's total capital deployment to date to $97.7 million in canola streaming contracts with a total of 79 farmers. Input's longest streaming contract has a 12 year term until 2026, and the portfolio average contract length is 6.3 years.

"Historically, Input's second quarter is the quietest quarter of our year as farmers are busy growing and harvesting crops," said President & CEO Doug Emsley. "We are excited to now be starting our active season with a sales force of ten people (compared to four at this time last year). Input is growing at a rapid pace with record streaming revenue and capital deployment in this most recent quarter."

Projected Streaming Tonnes for F2016

In this quarterly update, Input moves to providing a projection for anticipated canola streaming tonnes to be sold in the current fiscal year rather than by crop year. The table also includes Input's Total Reserves, which is the sum of all contracted canola streaming tonnes for all contract years less canola streaming tonnes sold to date.








Tonnes


Avg Crop Payment

Projected Streaming Tonnes in F2016


80,000


$44 / MT

Total Reserves


329,000


$67 / MT

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 seventy nine 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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