FY2020 First Half Financial and Operating Results

FY2020 First Half Financial and Operating Results

The Fedcap Group Reports Fiscal Year 2020 First Half Operating and Financial Results

New York, May 14 – The Fedcap Group, the parent company for a growing network of top tier nonprofit agencies, today reported its operating and financial results for the first half of fiscal year 2020 ending March 31, 2020. Committed to providing services that positively impact the lives of people with barriers to social and economic well-being, The Fedcap Group operates in four main practice areas: Workforce Development, Education, Occupational Health and Economic Development.

Management Comment

“For the most part, The Fedcap Group’s first half fiscal year 2020 results represented a continuation of the positive momentum we have experienced over the last several years,” said Christine McMahon, President and Chief Executive Officer. “We were continuing our growth trajectory, achieving favorable outcomes for the populations we serve, expanding our work internationally with the launch of a new contract in Canada, and looking forward to the expansion of our Career Design School offerings. Throughout the period, we continued to refine our work in our five key areas of focus: Children ages 0-8, youth transitioning from foster care, individuals with intellectual/developmental disabilities, the previously incarcerated and those on public assistance. At the same time, we made investments to enhance our technology infrastructure through upgrades to our financial, HR, fundraising and business development platforms.

“With the onset of COVID-19, we turned our attention to rapidly and effectively responding to the crisis. We activated our Business Continuity Plan—focused on People, Workplace/Operations, Finances, Information Technology and Communications. We prioritized the health and safety of our employees, clients and communities by implementing new protocols, including strict sanitary and physical distancing procedures that adhered to or exceeded CDC guidelines. With respect to finance, we stress tested our liquidity against a wide range of likely scenarios, evaluated relevant Disaster Assistance and additional cash conversion opportunities, and succeeded in bringing in federal and philanthropic dollars to cover a portion of our increased operating costs. We ensured that our technology platform was capable of managing the shift to online learning and telehealth, and finally, provided frequent update to all of our stakeholders on the evolving situation,” said Ms. McMahon.

2020 Financial and Operating Metrics

The first half of fiscal 2020 revenues were $129.4 million. Lower year-on-year comparisons primarily reflect the downsizing of our home health business, which contributed revenues of approximately $10 million in last year’s first half, a COVID-19 revenue impact of approximately $3.5 million and the wind-down of a large project that was completed in 2019. In the first half of fiscal 2019, revenues were $145.3 million.

Over the last several years, The Fedcap Group has significantly diversified its revenue sources, bringing a broader array of services to at-risk populations.

First half fiscal 2020 operating expenses were $130.8 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating loss of $1.4 million for this year’ first half, largely reflecting the impact of uncertainty about continued funding and allowable remote services at the start of the COVID crisis. We expect results in subsequent quarters of fiscal 2020 to stabilize and show some benefit from COVID-related opportunities and assistance.

During FY 2020 The Fedcap Group began the process of increasing its working capital line of credit to coincide with the many growth opportunities that exist.

At March 31, 2020 cash and marketable securities were $15.9 million compared to $22.2 million at the same time last year. Cash balance trends continue to reflect slow paying government funders, and The Fedcap Group is working diligently with these entities to ensure more timely payments for the services it provides.

Summary and Outlook

First half fiscal 2020 presented unprecedented operating conditions, and The Fedcap Group rose to meet these challenges.

Some of the organization’s activities during this period include:

“I could not be prouder of The Fedcap Group leadership and staff who have worked tirelessly to continue to bring our essential services to the at-risk populations we serve within a very difficult operating environment. This demonstrates the strong culture that unites us and supports our confidence in The Fedcap Group’s ability to continue to effectively navigate the COVID-19 health crisis and to emerge from it as an even stronger organization.

“We are optimistic as we prepare for the “new normal” and are planning our approach to the path forward. While we continue to expect challenges ahead, we are operating with rigorous financial and risk management controls and procedures to manage our cost structure and conserve cash.

“We believe that the post-COVID-19 environment will provide opportunities for The Fedcap Group and similar service providers, who are well-capitalized and have the scale and IT infrastructure to offer robust solutions to funders. Specifically, we believe that demand for our on-premises Facilities Management Services will increase as will the need for our workforce training and development work to help get individuals back to work. Additionally, we see further opportunities for The Fedcap Group’s services and expertise in the education and public health arenas to address the increased needs of the populations we serve.

“The Fedcap Group has the unique ability to leverage complementary capabilities and qualifications across our organization to achieve positive outcomes for clients. Spanning 22 states and three countries, we are approaching our funders with innovative ideas about how to optimize service delivery within the ever-changing environment. Our leadership in providing relevant services, our strong financial position and the dedication of our staff give us confidence in The Fedcap Group’s ability to remain a sustainable organization with sufficient infrastructure and resources to effectively serve clients,” said Ms. McMahon.

About The Fedcap Group

For 85 years, The Fedcap Group has developed scalable, innovative and potentially disruptive solutions to some of society’s most pressing needs. Serving over 265,000 people each year, The Fedcap Group provides educational services to every age group, vocational training in high-growth industries, behavioral health services, work readiness skill building and jobs—all targeted to helping people achieve long-term self-sufficiency.

The Fedcap Group also invests its time and resources in broader system change—working in partnership with federal, state and local government to improve the way services are designed, funded and delivered.

Conference Call Details

Date:05/14/20 at 11:00am EDT
US: 1-844-792-3735

UK: 08002799489

Canada: 1-855-669-9657

Link to Webcast: www.fedcapgroup.org/results


Fedcap Rehabilitation Services, Inc. and Subsidiaries Statement of Financial Position

Consolidated Statement of Activities and Changes in Net Assets

FY19 Year-End Financial and Operating Results

FY19 Year-End Financial and Operating Results

On Thursday, December 19th, 2019, The Fedcap Group released its FY19 Year-End Financial and Operating results. This effort, conducted twice a year, provides key stakeholders with regular and timely disclosures about financial and operational performance, mission-related impact, and trends and challenges for The Fedcap Group and underscores our commitment to fiscal transparency.

Please click on the image below to download the presentation.

The Fedcap Group Unveils Wall Display Depicting 85 Year History of Making A Difference

The Fedcap Group Unveils Wall Display Depicting 85 Year History of Making A Difference

The Fedcap Group recently unveiled a historical timeline of photos and images that tells the story of the agency from its founding in 1935 through the present day.

The striking installation, on a wall in the lobby of The Fedcap Group offices at 210 E. 43rd Street, was unveiled at a ceremony attended by board members, leadership and staff. Comprised of new and archival photos and newspaper articles, including raised images, the timeline brings to life The Fedcap Group‘s early days as a pioneering social enterprise and traces the transformative accomplishments of its middle years through the current era of expanded impact and global growth.

The timeline is a powerful testament to the enduring legacy of The Fedcap Group in transforming lives and communities, helping individuals find economic well-being for themselves and their families,” said The Fedcap Group President and CEO Christine McMahon in remarks at the event.  “It honors our history and stands as a testimonial upon which future generations of The Fedcap Group can build upon.”

At over 20 feet in length, the collage is a depiction in words and images of the work and impact of The Fedcap Group over the past 85 years. All members of The Fedcap Group family, and colleagues, friends and partners are encouraged to visit our offices at 210 E 43rd Street to view this powerful testimonial to the Power of Possible!

The Fedcap Group’s 2019 Celebration of The Power of Possible Gala

The Fedcap Group’s  2019 Celebration of The Power of Possible Gala took place on Monday, December 2nd. What an extraordinary evening!

Even with nasty weather, over 430 brave souls joined us to meet up with friends and colleagues in celebration of our mission and shared purpose.  A festive spirit permeated the grand hall at Cipriani 42nd Street, adorned with banners recognizing the individuals we serve.

Solution Series – Organizational Structure: A Tool to Advance Innovation and Bottom Business Line

Solution Series – Organizational Structure: A Tool to Advance Innovation and Bottom Business Line

On Wednesday October 16th we hosted our biannual Solution Series — Organizational Structure: A Tool to Advance Innovation and Business Bottom Line—at Mutual of American in Manhattan. A packed house of new and longtime supporters and friends of The Fedcap Group heard a dynamic panel of experts lead a compelling discussion about organizational structure. Hundreds more participated via livestream! The panel included –

      • Michael Sicard, Chairman and CEO, USI Insurance Services
      • Dianne Morales, Executive Director and CEO, Phipps Neighborhoods
      • Mario Desideiro, Enterprise Solutions and Analytics Practice Leader, Managing Director, Huron Consulting Group

Takeaways from the discussion were that structure should be designed to unlock teamwork and creativity; that structure must enable employees to always challenge themselves and have a vested interest in outcomes, and that structure must be flexible enough to allow for the ongoing infusion of new talent.  The panel emphasized how strategy drives structure, that the design and building of structure must be intentional, and that while no single structure works for every organization, transparency and cross-functional teamwork are often hallmarks of successful structure.

Thanks to Mutual of America for hosting this event. Stay tuned for information about our spring Solution Series!

6th Annual Fedcap Golf Tournament

6th Annual Fedcap Golf Tournament

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On Monday, August 12th The Fedcap Group held its annual Golf Tournament at Quaker Ridge Golf Club in Scarsdale, New York. Twenty-two golf foursomes played under beautiful summer skies at the highly regarded par-70 course designed by renowned golf course architect A. W. Tillinghast.

The event, attended by over 100 people, netted $60,000 to support young people who are transitioning from foster care and preparing for college and careers.  These extraordinary young men and women, at risk of homelessness and joblessness,  can now be provided with mentorship, high impact internships, and assistance in applying to and graduating from college.

Many thanks to our sponsors – Greenberg Traurig, Ken Raisler, IDB, Benefit Management Solutions Inc., People’s United Bank, Oracle, ABFS, American Paper and Supply, Sterling Sanitary Supply, SAS Maintenance, Platinum Maintenance, and Titanium Scaffold Services.  Thanks also to Quaker Ridge and all our friends and supporters who made this event possible. 

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FY19 First Half Financial and Operating Results

FY19 First Half Financial and Operating Results

On Wednesday, May 29th, 2019, The Fedcap Group released its FY19 First Half Financial and Operating results. This effort, conducted twice a year, provides key stakeholders with regular and timely disclosures about financial and operational performance, mission-related impact, and trends and challenges for The Fedcap Group and underscores our commitment to fiscal transparency.

Please click on the image below to download the PowerPoint presentation.

The Fedcap Group Solution Series: Socially Responsible Investing

The Fedcap Group Solution Series: Socially Responsible Investing

Socially responsible investing (SRI) targets the world’s most pressing challenges—scarce resources, climate change, poverty, human rights, diversity, and economic inequality. An astonishing $12 trillion–more than one out of every four dollars under management in the U.S. — is invested based on SRI strategies.

What is the responsibility of business?   What motivates socially responsible investors? How is impact measured?  A distinguished panel of experts addressed these and other key questions in a spirited and highly informative discussion at The Fedcap Group’s spring Solution Series on March 26th at The Westin New York Grand Central. The panel included:

•  Christina L Alfandary, Managing Director ESG and Sustainable Investments, GAMCO Investors, Inc.
•  Robert Brown, Senior Partner and Founder-Atlas Impact Partners
•  Martin Whittaker, CEO, JUST Capital

A full house of business partners, supporters, board members and representatives of foundations, academia and NYC agencies attended the event.

Robert Brown provided an interesting history of SRI and a hopeful vision for its future, which will likely see more companies embracing impact investing principles as a core value and more rigorous frameworks for measuring impact.

“Establishing and focusing on a set of SRI criteria is good for business and should just be part of what a company does. I would like to see more companies set and implement standards that reflect their values and move beyond aspirational statements to actual implementation,” he said.

Christina Alfandary, the author of a seminal paper about ESG, said that millennials are driving interest in impact investing because they see ESG issues as their own — if they don’t address challenges such as climate change it could be too late by the time their generation is in charge of government policy. More companies are recognizing that they need to be part of the solution, to embrace long-term thinking and a bottom line that includes both profits and impact.

“Social impact investing still has a long way to go to truly make a difference. What is needed is more cross-collaboration between the public and private sectors. Leveraging private capital markets is imperative to address these issues,” she said.

A fundamental question is how we define the social contract between markets and the society they serve.

Martin Whittaker said that the vision articulated by economist Milton Friedman — that the only social responsibility of business was to increase its profits – doesn’t serve the needs of communities and is not good business. A growing number of companies recognize the vital role they can play in addressing society’s challenges and are the United Nations Sustainable Development Goals into their culture.   “I am optimistic.  There is a growing number of investors demanding impact information, sustainability criteria, and the trends suggest we are moving in the right direction.”

Christine McMahon–Celebration of 10 Years of Leadership

Christine McMahon–Celebration of 10 Years of Leadership

Congratulations to Christine McMahon, our President and CEO, for 10 years of extraordinarily impactful service! 

A celebration to honor Christine’s first (we hope) decade of service took place on Monday, March 11th at 210 W. 43rd Street. Supporters, board members, business partners, leadership and staff gathered to recognize Christine’s transformative leadership and remarkable accomplishments–14 agency combinations, expansion of services into 22 states, $260 million in revenue and 700,000 lives impacted.   

It was a wonderful evening, with shared laughter, fond memories, and anecdotes and stories that reflected a deep appreciation for a leader who has a compassionate heart and fostered a collaborative culture of high expectation, innovation, loyalty and shared sense of mission.

Testimonials to Chris’ leadership noted her deep personal connection to the mission of The Fedcap Group; her ability to ask the difficult questions; her vision; the passion, intellect and energy she brings to her work, and her unwavering ability to inspire everyone in the organization to aspire to excellence.  

Longtime Board Member Peter Panken summed up the sentiment of all those gathered in the room: “We in the Fedcap family are lucky to have you. You are a wonderful force for good and we truly love you.” 


2018 Celebration of the Power of Possible Gala

2018 Celebration of the Power of Possible Gala

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“Your aspirations are your possibilities.” — Samuel Johnson

There is no greater gift than to serve—to make a difference in the lives of people in need. Thanks to the support of our Celebration of the Power of Possible Gala from our communtiy of stakeholders, many more young people and adults are on the path to economic and social wellbeing.

The theme of this year’s Gala was Innovation to Impact—a recognition of the energy and commitment that drive The Fedcap Group every day to deliver proven services, solve systemic problems and demonstrate the Power of Possible. A spirit of community and common cause permeated the event on Monday, November 26th at Cipriani in Manhattan, as colleagues and friends from across our agencies gathered to celebrate a year of impact and innovation. The Gala marked the launch of The Fedcap Group, a significant milestone in our collective history. Our growing international footprint of agencies now impacts the lives of more than 300,000 people annually, delivering measurable shifts in economic self-sufficiency for individuals in need. We are stronger together and united in our mission-driven purpose.

The evening was rich in highlights. Our beloved colleague Peter Panken received The Leo Mayer Award for Distinguished Service. Peter retired this year from the practice of law, and we are thrilled that he plans to continue his longstanding service to Fedcap. Longtime partner and supporter Mutual of America was presented with our Outstanding Corporate Services Partner Award. A special moment of recognition honored Tom Moran, former president, chairman and CEO of MOA who passed away in August. Tom was a great philanthropist and longtime champion of The Fedcap Group. He will be greatly missed.

We honored remarkable individuals whose resilience and courage allowed them to overcome significant barriers and put themselves on the path to realizing their full potential. We heard from board members and leaders from across The Fedcap Group and distinguished guests including John Greed, president and CEO of Mutual America. Thank you for supporting the Power of Possible. These powerful words serve as the foundation for what we do every single day across The Fedcap Group.

When you believe that achieving a dream is possible, and when you are inspired by those around you to aim high, dreams become reality.