REGINA, Aug. 19, 2014 /CNW/ - Input Capital Corp. ("Input" or the "Company") (INP.V) (INPCF) has released its unaudited results for the first quarter ended June 30, 2014. All figures are presented in Canadian dollars.
FIRST QUARTER FINANCIAL HIGHLIGHTS
- Input generated revenues of $2,261,253 from streaming contracts on the sale of 4,585 ("MT" or "tonnes") of canola at an average price of $493.23;
- Cash operating margin1 of $397.31 per MT (81% cash operating margin) from streaming contracts;
- Adjusted net income1 of $35,541, or $0.00 per share;
- Operating cash flow of $1,933,892, or $0.03 per share;
- Invested $11.65 million of upfront payments2 into multi-year streaming contracts, adding 49,755 contracted MT to the Company's future canola sales. These base tonnes have been acquired for an average upfront cost of $234.15 per MT and Input will purchase them in the year they are produced for an average crop payment of $70.18 for a total cost of $304.33 per MT; and
- Finished the quarter with:
- Cash and cash equivalents of $20,871,197;
- Total canola interests of $35,753,814 (current portion and long-term portion);
- Multi-year streaming contracts with 20 farm partners, with 179,299 contracted base
- MT of canola remaining to be delivered to the Company over the terms of the streaming contracts, of which 7,810 MT are from the 2013 harvest;
- Total shareholder's equity of $59,015,803; and
- No debt.
"The first quarter results highlight the strength of our canola marketing program, as we once again achieved strong pricing for our product. We continue to make sales of canola from the 2013 harvest and over the next quarters will shift our focus to the sale of the approximately 38,000 MT we have contracted from the upcoming harvest, which is over double the 18,000 MT we contracted from the 2013 crop," said Input President & CEO Doug Emsley. Emsley added, "With the bought-deal financing that we closed subsequent to quarter-end, we have approximately $60 million that we are getting ready to invest and we have the back-office in place to meet the demand as we market our streaming contracts."
1 Please refer to the section titled "Non-IFRS Measures" at the end of this release. For further information and a detailed reconciliation, refer to "Non-IFRS Measures" beginning on page 21 of the Fiscal 2015 First Quarter MD&A.
2 Includes contracts that were signed but not completely funded as at June 30, 2014.
Webcast and Conference Call Details
A conference call will be held on Wednesday, August 20, 2014 starting at 8:00 am Saskatchewan time (10:00 am Eastern time) to further discuss the first quarter results. To participate in the conference call use the following dial-in number:
Participant Dial in #:
(888) 231-8191 (North America Toll Free)
(647) 427-7450 (International)
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.
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.
Input is an agriculture commodity streaming company with a focus on canola, the largest and most profitable crop in Canadian agriculture. Input enters into 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 portfolio of twenty canola streams, all of which produce canola and revenue for Input in the year the agreement is 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 completed canola streaming contracts in Northern Alberta, Western Saskatchewan and throughout East Central Saskatchewan.
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.
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 Loss and Adjusted Net Income Loss per share;
- Operating Cash Flow per share;
- Adjusted EBITDA and Adjusted EBITDA per share;
- Average Crop Payment (Cash Cost) per Tonne;
- Cash Operating Margin; 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.