Input Capital’s cash flow positive in Q3

Input Capital Corp. finished the third quarter with cash of $40.7 million, total canola interests of $16.9 million; 10 multi-year streaming contracts with 14,506 contracted tonnes of canola remaining to be delivered to the company, and no debt, the Reginabased agricultural commodity streaming company said in a press release Friday.

Other highlights of the third quarter ended Dec. 31 include: ■ Input sold 2,646 tonnes of canola at an average price of $472.06 per tonne for total revenue of $1.25 million. ■ Input reported positive operating cash flow of $961,419. The company is also operating cash flow positive in its first full fiscal year of operation. ■ On Oct. 4, Input closed a private placement and public offering, raising $41 million for the purpose of expanding its portfolio of streaming contracts. ■ As a result of record canola yields and production in 2013, the company also expects to receive a yet-to-be-established number of bonus tonnes of canola this year.

“Our fiscal third quarter saw us deliver on our initial promises,” Input president and CEO Doug Emsley said in a press release. “The first canola streams have come full cycle; capital was deployed, canola was collected and converted into cash, and the capital is now being redeployed. The capital raised in October will be the foundation of our deployment program over the next 12 months and the positive operating cash flow Input is already generating will bolster that.”

But Emsley said “Input has not been immune to the industry-wide delays caused by a congested railway transportation system. We see the potential for delay of our canola deliveries from the 2013 harvest to extend beyond March 31 and into our next fiscal year.”

However, “on the plus side, in the face of an unusually crowded grain handling and transportation environment, many farmers are seeing the potential advantages in a streaming contract, and this is leading to enhanced deployment opportunities for Input,” Emsley added.