Input Capital Corp. Announces Record Capital Deployment and Canola Sales in Q3 Operations Update
REGINA, Jan. 6, 2015 /CNW/ - Input Capital Corp. ("Input") (TSX Venture: INP) (US: INPCF), is releasing its quarterly operations update for Q3 of its 2015 fiscal year, which provides a summary of capital deployed in the acquisition of new multi-year canola streams and a preliminary summary of quarterly canola deliveries for the quarter ending December 31, 2014. The final accounting of quarterly results will be published in Input's Q3 financial statements and MD&A when these are finalized and filed in due course.
$16.9 Million Deployed into 26 New Canola Streams
During the quarter, Input entered into twenty six canola streaming contracts in Saskatchewan and Manitoba for total up-front payments of $16.9 million. As a result, Input has more than doubled its total number of canola streams in the last three months, and has successfully expanded into Manitoba, further diversifying the Company's geographic footprint.
Twenty two of these newly announced contracts are with new farm partners, and four are with repeat customers whose farming operations have already experienced some of the benefits of canola streaming. Twenty five of the new streaming contracts are with farmers based in Saskatchewan, and one is in Manitoba.
"Our fall marketing and farmer awareness program is paying off," said Mr. Emsley. "Our Regional Account Managers are busy attending trade shows, fielding calls, and meeting with prospective new customers. Not only has this built a very strong pipeline of prospective streaming contracts, but it has resulted in very significant deal completion in the last quarter. Many of our new farm partners were able to take advantage of year-end discounts on seed and fertilizer purchases almost immediately after receiving their upfront payments."
These newly announced investments bring Input's total capital deployment to date to $59.8 million in canola streaming contracts with a total of forty two farmers.
Projected Volume Summary Based on Streaming Contracts in Place at December 31, 2014
| Harvest Year |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
| Projected Base Tonnes |
18,932 |
35,000 |
45,000 |
40,000 |
40,000 |
40,000 |
| Average Crop Payment per Base Tonne(1) |
$71 |
$50 |
$74 |
$74 |
$74 |
$73 |
Record Canola Tonnage Delivered and Sold
Input sold 8,027 metric tonnes ("tonnes" or "MT") of canola during the quarter at an average price of $437 per MT, for quarterly streaming revenue of $3.5 million.
Input also generated $1.2 million in revenue through short-term canola trading contracts with producers.
"We are happy to report that deliveries from the 2013 harvest are now effectively complete, and that 2014 deliveries are proceeding according to plan." said President and CEO Doug Emsley.
2013 Bonus Tonnes
Input also announced that bonus tonnes resulting from the 2013 harvest are expected to be approximately 300 MT. This figure is lower than previous estimates, which had been extrapolated from preliminary industry estimates of Prairie-wide yields, as a result of the Company's 2013 streaming portfolio being concentrated in eastern Saskatchewan. Final yields in this region came in lower than previously estimated due to excess moisture conditions in the area in 2013. Any unsold bonus tonnes will be delivered and sold in the coming quarter.
The following table summarizes canola sales for the 2015 fiscal year to date, compared to the 2014 fiscal year:
| Fiscal Quarter |
Q1 |
Q2 |
Q3 |
Q4 |
FYTotal |
| FY2014 Canola Streaming Volume (MT) |
-- |
-- |
2,646 |
3,903 |
6,549 |
| Average Net Realized Price |
-- |
-- |
$472 |
$470 |
$471 |
| FY2015 Canola Streaming Volume (MT) |
4,585 |
4,146 |
8,027 |
-- |
16,758 |
| Average Net Realized Price |
$493 |
$463 |
$437 |
-- |
$459 |
| % Change (in Volume) |
-- |
-- |
+203.4% |
-- |
+155.9% |
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 forty two 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.
Doug Emsley, President & CEO, (306) 347-1024, [email protected]; Brad Farquhar, Executive Vice-President & CFO, (306) 347-7202, [email protected]
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