Input Capital Corp. Announces Fiscal 2014 Year End Results

REGINA, May 27, 2014 /CNW/ - Input Capital Corp. ("Input" or the "Company") (TSX Venture Exchange: INP) has released its audited results for the 2014 fiscal year ended March 31, 2014. All figures are presented in Canadian dollars.

2014 Highlights (12 months)

• Revenue of $5,074,922.
• Canola sales of 6,549 metric tonnes ("MT" or "tonnes") from streaming contracts sold at an average price of $470.67, generating canola streaming revenue of $3,082,676.
• Average cash cost per MT¹ of $59.59, resulting in cash operating margins¹ of $411.11 per MT.
• Realized canola trading gross margin of $349,956 on canola trading revenues of $1,992,246.
• Net loss of $4,102,322 primarily due to one-time and non-cash items related to going public and IFRS-required market value adjustments to the carrying value of the Company's canola interests.
• Without these items, the Company had an adjusted net loss¹ of $806,763 ($0.02 per share).
• Operating cash flow of $3,182,384 ($0.07 per share).
• Adjusted EBITDA¹ of $409,660 ($0.01 per share).
• Invested $25.0M into multi-year streaming contracts, adding 116,979 contracted MT to the Company's future canola sales for an average upfront cost of $213.32 per MT.
• Finished the year with:
  • Cash and cash equivalents of $30,442,985;
  • Total canola interests of $27,752,194 (current portion and long-term portion);
  • Multi-year streaming contracts with 15 farm partners, with 132,740 contracted base MT of canola remaining to be delivered to the Company over the terms of the streaming contracts, of which 13,960 MT are from the 2013 harvest;
  • Total shareholder's equity of $60,199,227; and
  • No debt.

Fourth Quarter Highlights (3 months)

• Revenue of $3,771,100.
• Canola sales of 3,903 MT from streaming contracts sold at an average price of $469.73, generating canola streaming revenue of $1,833,415.
• Average cash cost per MT¹ of $87.65, resulting in cash operating margins¹ of $382.08 per MT.
• Realized canola trading gross margin of $343,535 on canola trading revenues of $1,937,685.
• Net income of $158,229.
• Operating cash flow of $1,767,800 ($0.03 per share).
• Invested $11.9M of upfront payments into multi-year streaming contracts, adding 54,509 contracted MT to the Company's future canola sales for an average upfront cost of $217.40 per MT.

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¹ Please refer to to the section titled Non-IFRS Measures at the end of this press release.

Input President & CEO Doug Emsley commented, "This marks the year end of Input's first real year of operation. In that year, we've proven the value of streaming contracts with farmers, taken the Company public, completed a financing to accelerate the growth of the business, and are well on our way to selling our portion of canola production from the 2013 crop. Our deal pipeline is bigger than ever, and we're excited about the future growth prospects for the Company."

Grant of Incentive Stock Options

Input also announces today that, pursuant to the provisions of its incentive stock option plan, the Board of Directors of Input has approved the grant of 36,600 incentive stock options to a consultant to the Company to purchase 36,600 common shares in the capital stock of the Company. The options are exercisable on or before May 26, 2019 at a price of $2.20.  The options granted to the consultant vest one-half on each of the first and second anniversary of the grant date. 

Grant of Deferred Share Units

Input also announces today that, pursuant to the provisions of its deferred share unit plan, the Board of Directors of Input has approved the grant of 102,728 deferred share units to the independent directors to the Company.  Each independent director has elected to receive 100% of his annual board retainer in the form of deferred share units.  Such deferred share units are granted on an annual basis but vested by quarterly instalments throughout the fiscal year. The number of deferred share units granted was determined by dividing the annual board retainer amount by the May 26^th closing price of the Company's common shares traded on the TSX Venture Exchange.  Deferred share units are paid out in cash when a participant ceases to be a director of the Company.  The deferred share unit plan does not permit the granting of shares in lieu of cash and therefore no approval of TSX Venture Exchange is required. 

Webcast and Conference Call Details

A conference call will be held on Wednesday, May 28, 2014 starting at 8:30 am Saskatchewan time (10:30 am Eastern time) to further discuss the fourth quarter and annual results. To participate in the conference call use the following dial-in number:

Participant Dial in – North America Toll Free: [phone]
Local Dial-In #:   [phone]

Webcast URL:   http://www.newswire.ca/en/webcast/detail/1348135/1490627

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 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.

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 twenty farmers located across Alberta and 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.

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 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 Recycle 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.

Doug Emsley, President & CEO, [phone], [email protected]; Brad Farquhar, Executive Vice-President & CFO, [phone], [email protected]