Input Capital Corp. Reports Record Q3 Streaming Revenue

REGINA, Jan. 11, 2016 /CNW/ - Input Capital Corp. ("Input", or the "Company") (TSX Venture: INP) (US: INPCF), is releasing its quarterly operations update for Q3 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 December 31, 2015. The final accounting of quarterly results will be published in Input's Q3 financial statements and MD&A when these are finalized and released in due course.

Record Quarterly Revenue from Canola Streaming Sales

Input sold a quarterly record of 31,296 metric tonnes ("tonnes" or "MT") of canola equivalent volume from streaming during the quarter at an average price of $490 per MT, for quarterly streaming revenue of $15.3 million.

The streaming sales volume of 31,296 MT compares with 8,182 MT during the same period last year, for an increase of 282% year over year.

On a trailing twelve month (TTM) basis, Input's streaming sales volume is up 202% this year over last year at the same time.

"Earlier this year, we made some changes to Input's canola sales program," said President & CEO Doug Emsley. "By focussing the company's canola sales on canola crushers, who are less reliant on rail movement, and by placing an emphasis on early canola movement and sale, by the end of December, we were able to deliver and sell over 85% of the canola received from the 2015 growing season. Converting crop to cash in a timely and efficient way helps assure that Input has the financial resources necessary to fund the remainder of this season's deployment plans."

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)

Average Net Realized Price

4,585

$493

4,146

$463

8,182

$441

7,011

$465

23,924

$462

FY2016 Canola Streaming Volume (MT)

Average Net Realized Price

6,079

$468

18,382

$487

31,296

$490

--

--

55,757

$487

% Change (in Volume)

+33%

+343%

+282%

--

+133%

$6.6 Million in New Capital Deployed

During the quarter, Input signed seventeen canola streaming contracts for total up-front payments of $6.6 million. Two streaming contracts are with new clients in Saskatchewan and fifteen contracts are renewals/expansions in Alberta (4), Saskatchewan (10) and Manitoba (1). This brings Input's streaming portfolio to 77 active canola streams in Alberta (8), Saskatchewan (64) and Manitoba (5).

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)

Total Number of Active Streams

Total Number of Inactive Streams

$6.1

5

-

$25.0

15

-

$49.1

68

-

$24.1

77

3

$104.3

77

3

Total Active Canola Reserves (MT)

Total Inactive Canola Reserves (MT)

22,000

-

134,000

-

303,000

-

251,000

67,000

251,000

67,000

These newly announced investments increase Input's total capital deployment to date to $104.3 million. Input's longest streaming contract has a 12 year term until 2026, and the portfolio average contract length for active streams is 6.6 years.

Update on Terminated Streaming Contracts

On November 12, 2015, Input announced the termination of three streaming contracts which went into default. Legal proceedings are underway to realize on assets provided to Input as security. Management continues to believe it will fully recover its investment in these three contracts. 

These contracts are now classified as inactive contracts, and Input will provide updates on the collection process as material events occur.

Update on Input Streaming Contract Portfolio

Input's management undertook a review of the company's underwriting and contracting processes as part of a normal diligence review and Input is pleased to report the following with regard to the portfolio review:

  • There are now 77 active streams in the Company's portfolio. To management's knowledge, all active streams are in good standing with their contract obligations. This is, in part, strongly evidenced by the fact that over 85% of the Company's expected canola volume from the 2015 crop has already been received.
  • Input has adopted a more comprehensive credit scoring and credit intelligence system which provides better insight into streaming counterparties during the due diligence process.
  • The review affirmed management's decision taken 18 months ago to reduce the average contract size, both in dollar terms, and relative to the overall size of the farm counterparty. All contracts signed since that decision are in good standing and are significantly within expected operating parameters.
  • Input is finalizing portfolio reporting designed to provide investors with improved and ongoing information into Input's streaming portfolio. This will be published in the regular quarterly financial reporting package starting next month.

Projected Streaming Tonnes for F2016

Periodically, Input updates its projections for anticipated canola streaming tonnes to be sold in the current fiscal year. The table below also includes Input's Total Active Canola Reserves, which is the sum of all contracted canola streaming tonnes for all contract years on all active contracts, less canola streaming tonnes sold to date.








Tonnes


Avg Crop Payment

Projected Streaming Tonnes in F2016


65,000


$55 / MT

Total Active Canola Reserves (MT)


253,000


$61 / MT

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.

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.

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/

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890