Tuesday, May 31, 2016

Input Capital reports earnings


"The growth in Input Capital's business over the last year is very exciting," said President & CEO Doug Emsley. "Input is on the verge of being able to fund our growth on the strength of internally generated cash flow. This is a very significant milestone for our four-year-old company. "We have always assumed that in any large portfolio such as our streaming portfolio, it would be inevitable that a few contracts would not work out.

In spite of the defaults announced in November, recently announced realization results related to the largest contract have helped to confirm and reinforce the strength of the collateral in the security package of our contracts. Agriculture has its ups and downs, but shareholders can rest easy in the knowledge that the Input's capital is well secured."

Revenue y-o-y up 173%
Gross profit y-o-y up 313%
Operating cashflow up 367%
Streaming contracts with 94 farmers up from 68 last year

So yeah this business model works. After the streaming contracts that defaulted last year it was impressive to me that Input was able to recover their capital. I think the market agrees as the share price has recovered substantially since the news came out. I am encouraged that the company just keeps doing what they say are going to do. I am also glad that I reloaded when the shares dropped on the bad news.

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