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Press Release Details

Input Capital Corp. Publishes F2017 Q1 Operations Update

01/10/2017

REGINA, Jan. 10, 2017 /CNW/ - Input Capital Corp. ("Input", or the "Company") (TSX Venture: INP) (US: INPCF), is releasing its quarterly operations update for Q1 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 quarterly canola sales during the quarter ended December 31, 2016. 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.

$12.0 Million in New Capital Deployment

During the quarter, Input signed 15 canola streaming contracts for total up-front payments of $12.0 million. This is 82% higher than deployment of $6.6 million during the same period last year.

Deployment in the quarter resulted in the addition of over 62,000 metric tonnes ("tonnes" or "MT") to Input's total active canola reserves.

Of the 15 contracts signed in the quarter, 10 are with new clients in Alberta (1) and Saskatchewan (9) and 5 contracts are renewals/expansions with existing clients. This brings Input's streaming portfolio to 122 active canola streams in Alberta (20), Saskatchewan (96) and Manitoba (6).

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








Fiscal Year (Sept YE)

2013

2014

2015

2016

F17 Q1

Total

Deployment ($ millions)

Total Number of Active Streams

Total Number of Inactive Streams

$19.2

10

-

$23.7

21

-

$54.8

79

-

$25.8

112

3

$12.0

122

3

$135.4

122

3

Total Active Canola Reserves (MT)

85,000

176,000

328,000

261,000

300,000









 

These newly announced investments increase Input's total capital deployment to date to $135.4 million. Input's longest streaming contract has a 12 year term until 2026, and the portfolio average contract length for active streams is 6.5 years.

$10.7 Million in Quarterly Revenue from Canola Streaming Sales

Input sold 22,468 metric tonnes ("tonnes" or "MT") of canola equivalent volume from streaming during the quarter at an average price of $475 per MT, for quarterly streaming revenue of $10.7 million. This compares to 31,889 MT sold in the same quarter last year.

Canola deliveries this year were somewhat hampered when harvest activity stalled due to bad weather, resulting in no deliveries taking place during October. Harvest activity picked up again in November and canola sales are expected to catch up in the January to March quarter.

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







Fiscal Quarter Ended

Jun 30

Sep 30

Dec 31

Mar 31

FY 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

22,468

$475


38,134

$478

% Change (in Volume)

-96%

-13%

-30%









 

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)

300,000

$86 / 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 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.

Doug Emsley, President & CEO, (306) 347-1024, doug@inputcapital.com; Brad Farquhar, Executive Vice-President & CFO, (306) 347-7202, brad@inputcapital.com

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