Input Capital Corp. Signs Record Number of New Canola Streams in Q2

REGINA, April 10, 2017 /CNW/ - Input Capital Corp. ("Input", or the "Company") (TSX Venture: INP) (US: INPCF), is releasing its quarterly operations update for Q2 of its fiscal year ending September 30, 2017, which provides a summary of capital deployed in the acquisition of new canola streams and a preliminary summary of canola sales during the quarter ended March 31, 2017. The final accounting of quarterly results will be published in Input's financial statements and MD&A when these are finalized and released in due course.

"We are very pleased with our progress in this second quarter," said President & CEO Doug Emsley. "We set a new record for quarterly capital deployment, added an incredible number of new farmers to our streaming roster, and have increased our canola reserves to a new all-time high. We're only six months into our fiscal year, and we've already surpassed last year's deployment figures for the entire year."

"With this successful quarter, Input now has more revenue producing streams than any other publicly-traded streaming company. That's an amazing result from the hard work of our team over the past 4.5 years, and it demonstrates that agriculture streaming is becoming a mainstream tool in the western Canadian farm marketplace."

Highlights from Q2, ended March 31, 2017:

  • Signed 126 streaming contracts for a total of $20.2 million in new capital deployment during the quarter, adding 61 new producers and over 192,000 metric tonnes ("tonnes" or "MT") to canola reserves. This brings deployment in the first half of F2017 to $32.2 million.
  • Recorded $9.0 million on the sale of 18,867 MT of canola equivalent sales from streaming during the quarter, at an average price of $476 per MT.

Subsequent to the quarter end, Input:

  • Closed the streaming contracts totalling $8.0 million in upfront payments which were previously announced in the Q1 Quarterly Operational Update; and
  • Closed the previously announced conditional sale of 4,320 acres of farmland which had been received from a farmer as a partial buydown of a streaming contract.

While the terms of the farmland sale will not be made public due to commercial and privacy sensitivities in the tight-knit farming community, Input management is pleased to report that the land sale took place at expected values. 

$20.2 Million in New Capital Deployment

During the quarter, Input signed 126 canola streaming contracts for total up-front payments of $20.2 million. This is the highest number of streaming contracts ever signed by Input in a quarter (126 compared to 39 in the same quarter last year), and is also a record for quarterly capital deployment ($20.2 million compared to $11.3 million in the same quarter last year). The quarter also included $3.5 million of stream buybacks.

Deployment in the quarter resulted in the addition of over 192,000 metric tonnes ("tonnes" or "MT") to Input's total active canola reserves. This is the largest number ever added in a single quarter, and brings total reserves to a new record level of 465,000 MT.

Of the 126 contracts signed in the quarter, 61 are with new clients in Alberta (17), Saskatchewan (42), and Manitoba (2), and 65 contracts are renewals/expansions with existing clients. This brings Input's streaming portfolio to 181 active canola streams in Alberta (38), Saskatchewan (135) and Manitoba (8).

Year to date, Input has signed 143 canola streaming contracts for total up-front payments of $32.2 million. This compares to 57 canola streaming contracts for total up-front payments of $17.9 million during the same six month period last year, increases of 151% and 80%, respectively.

As of March 31, Input now has 181 active canola streams in place, compared to 94 at the same time last year, for a year-over-year increase of 93%.

A summary of historical capital deployment restated to fit with Input's September year-end is summarized in the table below:








Twelve Months Ending Sept

2013

2014

2015

2016

YTD F17

Total

Deployment ($ millions)

$19.2

$23.7

$54.8

$25.8

$32.2

$155.7








Total Number of Active Streams

10

21

79

112

181

181

% Change (Number Active Streams)


110%

276%

42%

62%









Total Active Canola Reserves (MT)

85,000

176,000

328,000

261,000

465,000

465,000

% Change (Active Canola Reserves)


107%

86%

-20%

78%


 

These newly announced investments increase Input's total capital deployment to date to $155.7 million.

$9.0 Million in Quarterly Canola Streaming

Input sold 18,867 metric tonnes ("tonnes" or "MT") of canola equivalent volume from streaming during the quarter at an average price of $476 per MT, for quarterly streaming sales of $9.0 million. This compares to 5,894 MT sold in the same quarter last year.

Canola deliveries which were delayed in October have now been caught up, as expected. Additional canola sales of 2016 crop are planned in Q3 and Q4, and will add to the totals for the F2017 fiscal year.

The following table summarizes canola equivalent sales for the current trailing twelve month period, compared to the previous trailing twelve month period (note that previous year comparisons are skewed by significant carry-in tonnes in FY2016):







Fiscal Quarter Ended

Jun 30

Sep 30

Dec 31

Mar 31

TTM Total

FY2016 Canola Streaming Volume (MT)

Average Net Realized Price

6,079

$468

18,382

$487

31,889

$490

5,894

$448

62,244

$483

FYSept2016 and FY2017 Volume (MT)

Average Net Realized Price

250

$459

15,916

$481

24,958

$470

18,867

$476

59,991

$475

% Change (in Volume)

-96%

-13%

-22%

220%

-4%

 

Total Active Canola Reserves

The table below shows 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*

Total Active Canola Reserves (MT)

465,000

$170 / MT




*Avg Crop Payment is calculated based on an assumed $450/MT average realized canola selling price.

 

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 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: please contact: 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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