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The Fedcap Group Releases Fiscal Year 2023 Operating and Financial Results

The Fedcap Group Releases Fiscal Year 2023 Operating and Financial Results

Another Year of Strong Contract and Program Performance

Looking Ahead to Mid-Single Digit Revenue Growth in FY2024

New York, NY—December 13, 2023—The Fedcap Group reported its operational and financial results for fiscal year 2023 ended September 30, 2023.

“We are pleased to report that fiscal 2023 was a year of impressive contract and program performance for The Fedcap Group in which we further strengthened our financial position and laid the groundwork for substantial domestic and international growth in the future. While continuing to achieve positive outcomes domestically, we expanded our global footprint in FY2023, introducing new initiatives in Canada and the United Kingdom, while integrating successful models internationally, demonstrating our dedication to scalable best practices on a global scale,” said Christine McMahon, President and CEO of The Fedcap Group. “In FY2023, we outpaced our peers in graduation rates, set a record for number of job placements in our organization’s history, secured families more than a half a billion dollars in benefits using our Single Stop screening platform, and launched new innovations, like virtual reality technology and a CDFI that will build generational wealth in historically marginalized communities. We achieved this while navigating a challenging economic environment in which our financial results demonstrated the benefits of our diversified revenue base and long-term data-driven strategic planning.”

Operational Results

The Fedcap Group provides a diversified array of services and interventions to spring individuals from the social safety net and put them on a path to economic well-being. The Fedcap Group’s work is organized through four practice areas—education, workforce development, health, and economic development—and driven through 23 nonprofit subsidiaries in the United States, Canada, and the United Kingdom. In FY2023, The Fedcap Group served nearly 230,000 people, including those screened for state and federal benefits through our Single Stop program.

Education
Throughout FY2023, the Education Practice remained dedicated to strengthening and broadening its cradle-to-career initiative, commencing with early childhood programs, and extending through post-secondary education. During FY2023, The Fedcap Group successfully educated 2,330 individuals—an annual increase of 4.5%—across four states, achieving an overall completion rate of 77%.

Highlights from FY2023 included a substantial expansion within childhood development programs, notably marked by the launch of a new Easterseals Pre-K program in Austin, Texas, and the completion of a state-of-the-art facility in Port Jervis, NY, which significantly increased its capacity.

In addition, Apex Technical School, The Fedcap Group’s postsecondary trade program, opened a modern new facility in Queens, NY. In an era of declining post-secondary enrollment, Apex is bucking national trends with a 23% year-over-year enrollment increase. With an impressive completion rate of 76%–far surpassing the national average of 43% for peer institution community colleges, and its outstanding 75% placement rate into well-paying, sustainable trade jobs, Apex has reinforced its position in higher education.

Workforce Development
The Workforce Development Practice continued its exceptional performance throughout FY2023. Notably, Fedcap achieved a milestone by placing 25,600 individuals into jobs, marking a noteworthy 7% year-over-year increase and an impressive 184% growth since 2020. FY2023 also reinforced Fedcap’s track record of robust job retention rates, with 90% of individuals placed retaining their positions for at least 30 days, 82% for 90 days, and 78% for 180 days.

In FY2023, Fedcap introduced FedcapVR—an innovative end-to-end solutions provider specializing in creating fully immersive virtual reality simulations. These simulations are seamlessly integrated into the organization’s education and workforce programs, specifically tailored for industries such as construction, welding, and green energy technologies. FedcapVR is instrumental in assisting Fedcap clients with job exploration and successful completion of their training, thereby enhancing their prospects in the job market.

Health
The Fedcap Group’s Health Practice continues to grow on the strength of the organization’s nation-leading Single Stop case management and benefits program. During FY2023, Single Stop screened 55,870 individuals for federal and state benefits, and households on average received $17,600 in benefits—or $504.7 million total value of benefits overall. Single Stop also included new programs to screen, including the Low-Income Home Energy Assistance Program—LIHEAP— and entered new states including California and Illinois.

The Fedcap Group continues to show strong results in health and wellness during FY2023, including providing more than 42,000 individuals wellness services in health and behavioral health treatment–enabling individuals to stabilize and obtain and retain employment.

Economic Development
During FY2023, The Fedcap Group directly employed 1,060 individuals in its commercial businesses—the majority of whom have disabilities or other employment barriers, enjoying an average annual salary of $42,550. This figure stands notably higher, surpassing the average annual salary based on a minimum wage of $15.00 per hour by over 30%.

Moreover, there has been a remarkable increase in retirement assets for Fedcap’s direct client service workers, climbing from $8.4 million in 2010 to an impressive $124.4 million in 2023. This substantial growth demonstrates our steadfast commitment not only to providing sustainable wages, but also to fostering wealth and financial stability among our diverse workforce.

In FY2023, The Fedcap Group launched a CDFI to help barriered communities achieve economic well-being through direct financial investment and equity opportunities. Utilizing a $125K technical assistance grant from the U.S. Treasury, The Fedcap Group is currently developing the CDFI structure and set a goal of raising $6 million over the next three years to be used for home ownership, lending for low-cost equity investments, technical assistance, small business loans, and project-based investments.

International Programs
Our global presence continues to expand, particularly in Canada and the United Kingdom. In FY2023, we introduced new employment services in Niagara Falls, Canada, and within the Hamilton-Niagara region, Fedcap not only surpassed job entry performance deliverables by over 100% but also consistently exceeded various other performance targets, meeting or surpassing contractual obligations.

Additionally, The Fedcap Group significantly enhanced its domestic and international program integration, enabling the organization to implement and scale best practices globally. In FY2023, our U.K.-based company successfully adopted The Fedcap Group’s established clubhouse model—a 30-year-old program based in New York City and New Hampshire. Clubhouses aid, train, and build community for individuals dealing with serious mental illness. The two newly established clubhouse models in the U.K.—Riverside Clubhouse in Staines, South Central England, and the Hive Clubhouse in Burnley, Northwest England—are already showing notable successes. This year, 68% of members experienced improvements according to the Work and Social Adjustment Scale, while 60% reported enhanced well-being through the Warwick-Edinburgh Mental Wellbeing Scale.

Similarly, our U.S.-based program in Maine has effectively adopted the U.K.’s Restart Program, designed to aid long-term unemployed individuals in transitioning back to work. The official launch of this program is scheduled for 2024.

FY2023 Financial Results

We successfully navigated the economic challenges of FY2023, including high inflation, government budget cuts, and regulatory uncertainty that resulted in the elimination of several contracts and various project delays. Fedcap Group’s revenue for FY2023 reached $363.4 million, slightly ahead of the $361.7 million reported in FY2022, and based on current visibility, we expect to return to mid-single-digit revenue growth in fiscal 2024. The Fedcap Group ended fiscal 2023 with a robust business development pipeline of almost $400 million and an impressive win rate of over 95% on recompetes.

At fiscal 2023 year-end, The Fedcap Group had $34.9 million in cash and investments, total assets of $358.3 million, and long-term debt of $249.1 million. Notably, The Fedcap Group’s net assets increased to $52 million, indicating an impressive 38% increase from FY2019.

Outlook

In addition to continued global expansion of best practices and programs to achieve economic well-being, The Fedcap Group will focus on its pledge to sustainability. Fedcap has committed to adhering to the United Nations construct on sustainable development and is implementing clear positive programs to strengthen Environmental, Social, and Governance practices for the 23 organizations under The Fedcap Group.

 

About The Fedcap Group

For nearly ninety years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to some of society’s most pressing needs. The Fedcap Group provides educational services to every age group, vocational training, and job attainment in high-growth industries, as well as support services such as behavioral health services—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.

Contact

Jim Malatras, 212-727-4200, (JMalatras@fedcap.org)

Financials

The Fedcap Group Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS

The Fedcap Group
CONSOLIDATED STATEMENT OF ACTIVITIES

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The Fedcap Group Reports First Half Fiscal Year 2023 Financial and Operating Results

The Fedcap Group Reports First Half Fiscal Year 2023 Financial and Operating Results

The Fedcap Group Reports First Half Fiscal Year 2023 Financial and Operating Results

  • Revenue Increase of 6.4% to $186.1 Million Reflected Solid Organic Growth of Domestic and International Programs.
  • Served Nearly 140,000 Individuals in First Half of FY2023—a 50% Year-on-Year Increase.
  • Placed 12,354 Individuals into Jobs—a 15% Increase; Growth Led by Expansion and Integration of Education and Workforce Programs.
  • Received Technical Assistance Grant from the U.S. Treasury Department to Launch a Community Development Financial Institution.

New York, NY—May 11, 2023—The Fedcap Group, the parent company for 23 nonprofit subsidiaries, in the United States, Canada, and the United Kingdom, released its operating and financial results for the first half of fiscal year 2023 that ended March 31, 2023.

First Half FY2023 Program and Operating Results

Commenting on the results, The Fedcap Group’s President and CEO Christine McMahon noted, “This was another period of solid growth and significant accomplishment for The Fedcap Group. We continued to execute effectively on domestic and international contracts, while winning new work, and building out our service offerings to address the substantial opportunities we see on the horizon.

“In the first half of fiscal 2023, we made considerable progress on the key objective of integrating education pathways with our workforce programs, by awarding college credit to individuals who have gained workforce and vocational certifications. During the period we leveraged our partnership with Paul Smith’s College to provide college credits to individuals graduating from our technical and workforce programs in the areas of solar technology, home digital automation, and entrepreneurship. Through the collaboration of our Education and Workforce practices, we train individuals for jobs and careers in areas of high demand that provide a roadmap to economic well-being.

“The Fedcap Group continues to be differentiated by our passion for driving program innovation and implementation above and beyond what our contracts call for. This attribute has underpinned our growth and success to date and provides us with continued opportunities for further progress in the second half of this fiscal year and beyond.”

Operating Results

The Fedcap Group provides a diversified array of services to break down barriers and create pathways to economic well-being. In the first half of the 2023 fiscal year, The Fedcap Group served just under 140,000 individuals, including those screened for state and federal benefits through our Single Stop program—a 50% increase year-over-year. To achieve this mission, The Fedcap Group operates across four key practice areas: Education, Workforce Development, Health, and Economic Development.

Education

The Education Practice continues to expand with programming that spans from early child wellness services all the way through college-level vocational and credit-bearing college education. Currently, 2,230 individuals are enrolled in our education programs across the country. Key first half FY2023 highlights were:

  • Establishment of the Apex Clean Energy Institute, piloting a solar technician program, which led to more than 50% of our graduates receiving an average wage of more than $50,000 annually.
  • Launching the Paul Smith’s College culinary certificate program in New York City and connecting it to a Summer in Saranac residency at the college.

Workforce Development

The Workforce Practice continues to demonstrate strong growth and positive outcomes. In the first half of FY2023 we placed 12,354 individuals into jobs—an increase of 15% from the first half of FY2022, and maintained our above-average job retention results, with over 80% of those placed being retained for 180-days or more.

In addition, we launched FedcapVR Technologies—an end-to-end solutions provider to create fully immersive virtual reality simulations that will be fully integrated into our education and workforce programs, including solar and wind energy, construction, urban forestry, and welding.

Health

The Fedcap Group’s Health Practice continues to grow on the strength of our Single Stop case management and benefits program. During the first half of FY2023, 24,700 individuals were screened for federal and state benefits, and households on average received $21,000 in benefits.

In addition, The Fedcap Group continues to show strong results in health and wellness during the first half of FY2023 including:

  • Providing 15,415 people wellness services in health and behavioral health treatment–enabling individuals to stabilize and obtain and retain employment.
  • Assisting 5,000 veterans and their families to access an array of wellness, educational, and employment services from the Dixon Center for Military and Veterans Services and other companies of The Fedcap Group.

Economic Development

In the first half of FY2023, 1,060 individuals were directly employed by a company of The Fedcap Group. Ninety-five new jobs were added in Total Facilities Management–our largest commercial enterprise. The average salary is $42,550 annually—more than 30% higher than an annual salary at a $15 minimum wage. In addition, the retirement assets of Fedcap’s direct client service workers have greatly increased from $8.4 million in 2010 to $111.2 million in 2022—demonstrating our commitment not only to sustainable wages, but also to wealth.

International Operations

Our international footprint continues to rapidly expand in Canada and the United Kingdom.
In Canada, we launched new employment services in Niagara Falls during the first half of FY2023. In the Hamilton-Niagara region we have exceeded job entry performance (100%+) deliverables while outpacing other performance targets—consistently meeting or exceeding contractual requirements.

Our UK-based Fedcap Employment is providing leading job training and placement for people displaced from the Ukraine in Scotland. To date, we have worked with 433 people and already 160 have been supported into work.

Fedcap Scotland is expanding health programs—recently being awarded funding through the Falkirk Health and Social Care Partnership for our new pilot program “Healthy Minds, Inspiring People.” This eight-week program will support 40 young people who have learning disabilities and difficulties with their mental health through building confidence, resilience, and empowering self-efficacy. Fedcap UK will also launch the United States Clubhouse model in the United Kingdom—a program designed to offer services to those people with mental health conditions, building confidence and self-efficacy.

First Half FY 2023 Financial Results

In the first half of FY2023, revenues increased 6.4%, to $186.1 million. Revenue growth reflected organic domestic and international program growth, with domestic work representing 71% of the total first half FY2023 revenue and international accounting for 29%. The Fedcap Group continues to achieve strong contract renewal rates of over 90% and has a robust business development pipeline.

At March 31, 2023, The Fedcap Group had $47.4 million in cash and investments, $255 million in total assets, and $157.1 million in long-term debt. Net assets were $50.7 million, an increase of 12.4% from first half FY2022 levels.

Outlook

“Our first half results have put us on track to serve a significantly expanded population and achieve considerable revenue growth for first half FY2023.

“We are pleased to note that The Fedcap Group received a technical assistance grant from the U.S. Treasury Department to launch a Community Development Financial Institution focused on building wealth for individuals through private sector growth and homeownership. When fully operational, the CDFI will primarily offer equity or capital investments to help people build equity through a business or through home ownership as well as technical assistance.

“The Fedcap Group’s strong operating and financial position has enabled us to greatly expand the number of individuals we serve. Over the remainder of the 2023 fiscal year, we will continue the integration and expansion of our education and workforce development platforms, while executing on our existing contracts and moving ahead with our launch of the CDFI. Capturing these growth opportunities will enable us to further our mission to achieve economic well-being for disadvantaged communities,” Ms. McMahon concluded.

About The Fedcap Group

For nearly ninety years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to some of society’s most pressing needs. Serving 340,000 people this past fiscal year, The Fedcap Group provides educational services to every age group, vocational training and job attainment in high-growth industries, as well as support services such as behavioral health services—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: Thursday, May 11, 2023, 11:00 a.m. ET
Phone: 1 (844) 792-3735
Link to Webcast: fedcapgroup.org/results2023

Contact

Susan Walsh, 212-727-4200, (SWalsh@fedcap.org) 

Financials

The Fedcap Group Consolidated Statement of Financial Position

The Fedcap Group Consolidated Statement of Activities

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The Fedcap Group Successfully Reports Fiscal Year 2022 Financial and Operating Results

The Fedcap Group Successfully Reports Fiscal Year 2022 Financial and Operating Results

The Fedcap Group Reports Fiscal Year 2022 Financial and Operating Results

  • Revenue Growth of Nearly 9% to $360 Million Reflects Organic Growth of Domestic and International Services Platforms
  • Fiscal 2021 Acquisitions Leveraged to Further Expand Education and Workforce Development Training Capabilities
  • Nation’s Largest Digital Skills Center Created at Civic Hall @ Union Square, NYC
  • New Green Education Program Launched

New York, December 8—The Fedcap Group, the parent company for a growing family of top tier nonprofit agencies, today reported its operating and financial results for the fiscal year 2022 ended September 30th. The Fedcap Group is committed to providing services that positively impact the lives of people with barriers to economic well-being, through its network of 23 nonprofit subsidiaries, across the United States, Canada, and the United Kingdom.

“We delivered strong operating and financial results in FY 2022, achieving virtually all contract deliverables and posting an 8.8% year-on-year revenue increase, primarily driven by organic growth,” said Christine McMahon, President and Chief Executive Officer. “Our performance reflects excellent execution on existing contracts and demonstrates how well our expertise and qualifications are aligned with the priorities of funding agencies and the needs of the clients we serve. This past fiscal year has been an exciting period for The Fedcap Group, as we were able to achieve industry-leading outcomes for a greater number of individuals, while building out our service platforms in the U.S. and internationally, amplifying the positive impact of our programs.

“In fiscal 2022, we successfully expanded our education and workforce development training capabilities, described below, which provide critical bridges to the economic well-being of the communities we serve.”

Over 300 international participants attended the webcast, for which an audio playback is available.

2022 Operating Results

The Fedcap Group provides a diversified array of services to break down barriers and create pathways to economic well-being. These include education and workforce training programs designed to reach at-risk and underserved populations and help place them in sustainable well-paying jobs. To achieve this mission, The Fedcap Group operates across four key practice areas: education, workforce development, health, and economic development.

Education

The education practice has programming that spans from cradle to career. Over the past year, this practice has achieved significant growth in its early childhood services all the way through college-level vocational and credit-bearing education.

Post-Secondary/Higher Education

In fiscal 2022, The Fedcap Group has expanded post-secondary programming, through several key initiatives:

      • Creating Civic Hall @ Union Square, which will be operational in 2023 and which will be the largest digital skills training center in the nation. Spanning 85,000 square feet on six floors, Civic Hall will include a collaborative community space, state-of-the-art conference and events center, and a 42,000 square foot Digital Learning Center (DLC) that includes 22 classrooms to be shared among the nation’s leading technology training and job training organizations.

      • Completing the acquisition of Power52 Clean Energy Access Institute’s Solar Technician/Installation program and in so doing expanding The Fedcap Group’s capacity to deliver high-demand, well-paying green energy job training to underserved communities.

      • Strengthening our partnership with Paul Smith’s College by integrating our education programs into their curricula. Specifically, after a rigorous academic review, Paul Smith’s College will award six college credits graduates to Fedcap’s Power52 Solar Technician/Installation program as well as the new Home Automation and Industrial Automation programs at Fedcap’s post-secondary vocational school, Apex Technical School.

At Apex Technical School, we continue to train individuals and successfully place them in well-paying jobs. This past year, Apex enrolled 2,600 individuals in high demand fields such as electrical, HVAC, welding, and auto repair. A total of 1,950 completed their training program (graduation rate of 75%), and of those graduating 1,482 were placed into jobs (job placement rate of 76%). The average wage for a recent Apex graduate with no experience is approximately $41,000 per year. With some experience in the field the average wage is approximately $82,000.

Early-High School Education

Our early education programming provided through Easterseals and other programs continues to demonstrate success in assisting individuals with intellectual and developmental disabilities entering the workforce. In FY 2022 we provided services to 2,272 children ages 0-8 delivering an array of evidence-based interventions that promote long term economic and social well-being. One hundred percent of children from inclusive childcare programs entered regular kindergarten. Our special education school located in New Jersey achieved a 100% graduation rate and 100% of the graduates entered college or technical schools for the past three years.

Workforce Development

The workforce practice continues to represent the area in which The Fedcap Group serves the largest number of individuals through a broad range of services domestically and in the United Kingdom and Canada.

We have substantially increased the number of individuals we placed in well-paying, sustainable jobs. In FY 2022 we placed 24,000 people in jobs—nearly an 80% increase from FY 2021 and a 300% increase from FY 2020—a strong trend, with 29% of new job placements earning $17.00 or more per hour.

In FY 2022, we ramped up the large, multi-year contract awarded to us in the UK to provide support for those unemployed as a direct impact of the pandemic, and we continued to effectively manage our large Canadian workforce development contract. Our work for international clients accounted for approximately 30% of total FY 2022 revenues.

In order to expand workforce and education training programs, we launched a joint venture between Fedcap Inc. and UP360—a Canadian Based Virtual Reality Technology firm. Our new VR technology will enhance and expand access to programming across The Fedcap Group family of nonprofits including in workforce, education, and health.

Among our services is the Single Stop benefits screening, case management, direct services platform, which has helped connect over 87,000 individuals needing support to an average of $12,600 per household in benefits this past fiscal year. In the aggregate Single Stop facilitated access to benefits valued at $374 million during this past fiscal year.

Health

The health services practice continues to expand. In FY 2022 we provided wellness services to over 43,000 people (behavioral and physical health care, treatment for substance use disorders), with a view to helping them stabilize, and secure the skills and education required to achieve sustainable economic well-being.

Additionally, ReServe—a subsidiary of The Fedcap Group—was awarded over $10 million to support underserved neighborhoods disproportionately impacted by the COVID-19 pandemic, including creating community health vaccine education teams to promote the COVID-19 vaccination. We sponsored 352 community education events, distributed over 1,250,000 Covid materials including PPE, testing kits and health information and made 1,800 referrals for employment.

We continue to expand our services to veterans and military-aligned families. In FY 2022, 14,950 veterans and their families were positively impacted by at least one of the arrays of community services supported by Dixon Center for Military and Veterans Services.

Economic Development

Our economic development practice comprises business services operations that directly employ the populations we serve.

A total of 1,010 people are employed in our commercial businesses—the majority of whom have disabilities or other employment barriers. 156 new jobs were added in FY 2022 in Total Facilities Management—our largest commercial enterprise. The average salary is $42,550 annually.

The Fedcap Group also made significant strides in helping underserved communities that frequently lack access to capital in order to build equity for economic well-being. This year we received a $125,000 Technical Assistance grant from the federal government to assist in our launching of a Community Development Finance Institution. This is a major step forward in unlocking loans and equity to benefit communities left behind.

2022 Financial Metrics

Revenue for FY 2022 ended September 30th, 2022, was $360 million, an 8.8% increase from the same period last year. Operating expenses were $354.3 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating profit of $5.3 million for the period ended September 30, 2022, consistent with the $5.4 million earned in the same period last year.

At September 30th, 2022, cash and marketable securities were $60.1 million compared with $53.9 million for the prior year.

Summary and Outlook

“The Fedcap Group remains committed to innovation, identifying new strategies to affect change in people’s lives, and improving the systems within which services are delivered,” said Christine McMahon, President and Chief Executive Officer. “The entire Fedcap organization works diligently every day to bring critical services to individuals and communities in need across our expanding geographic footprint. As we make a positive impact on society, we also are managing to the highest Environmental, Social and Governance (ESG) standards, by reducing our energy usage, maintaining a collaborative working environment, and prioritizing transparency, specifically as we provide semi-annual updates on our operating and financial results.”

About The Fedcap Group

For 87 years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to some of society’s most pressing needs. Serving 340,000 people this past fiscal year, The Fedcap Group provides educational services to every age group, vocational training and job attainment in high-growth industries, as well as support services such as behavioral health services—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.

Contact

Susan Walsh, 212-727-4200, (SWalsh@fedcap.org)

Financials

Consolidated Statement of Financial Position As of September 30

Consolidated Statement of Activities
for the periods ended September 30, 2022, and 2021

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The Fedcap Group Reports Strong Operating and Financial Results in Fiscal 2022 First Half

The Fedcap Group Reports Strong Operating and Financial Results in Fiscal 2022 First Half

From humble beginnings as a local agency founded by three World War 1 veterans with disabilities who simply wanted to work, The Fedcap Group has grown into a global family of top-tier agencies serving individuals with barriers to self-sufficiency, and developing scalable, innovative solutions to some of society’s most pressing needs.

On Thursday, May 12th, The Fedcap Group released its first half financial and operating results for first half FY22. The biannual releases provide key stakeholders with timely disclosures about financial and operational performance, mission-related impact, and trends and challenges. The releases are unique in the nonprofit sector and reflect The Fedcap Group’s commitment to transparency.

Key takeaways include placing 10,685 people in jobs—a nearly 100 percent increase from first half FY 2021; serving 30,000 more people in first half FY22 than in first half FY21; double-digit revenue growth reflecting a robust domestic and international service platform, and top-tier performance leading to a +99 percent win rate on re-competing for contracts. The Fedcap Group has 300 contracts in four countries, with international clients accounting for 30 percent of revenue for the period.

“We delivered strong operating and financial results in the fiscal 2022 first half, achieving 96% of all contract deliverables and posting a 14.4% year-on-year revenue increase, primarily driven by organic growth,” said Christine McMahon, CEO of The Fedcap Group. “This performance reflects excellent execution on existing contracts and demonstrates how well our expertise and qualifications are aligned with the needs of funding agencies and consumers.”

Other highlights include the ramping up of a large, multi-year contract in the UK to provide services to the unemployed, and ongoing management of a large Canadian workforce development contract. International clients accounted for close to 30 percent of total first half revenues. The Fedcap Group leveraged its prior acquisitions of APEX Technical School and Civic Hall, and strategic partnership with Paul Smith’s College, to further expand its footprint in education and training, and planned the launch of an 80,000 sq. ft. digital training center that can train up to 3000 students per year.

A pioneer in social enterprise and vocational rehabilitation, The Fedcap Group’s commercial businesses employ 1,798 people who have a disability or barrier to employment. Total Facilities Management, The Fedcap Group’s largest commercial enterprise, added 158 new jobs in first half FY22.

The Fedcap Group’s proprietary Single Stop platform served over 25,000 new people, including 10,000 college students, connecting them to over $88 million in federal and state benefits and resources. And building on its history as a pioneer in social enterprise, The Fedcap Group announced that it employs 1,798 individuals with a disability or barrier to employment in its commercial businesses.

For the period, The Fedcap Group provided wellness services to 23,270 people (behavioral and physical health care, treatment for substance use disorders), with a view to helping them stabilize and gain employment, and provided services to 3,123 children ages 0-8, designing and delivering an array of evidence-based practices that promote long term economic and social well-being.

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The Fedcap Group Financial and Programmatic Results for FY 2021 Demonstrate Effective Implementation and Strong Financial Performance

The Fedcap Group Financial and Programmatic Results for FY 2021 Demonstrate Effective Implementation and Strong Financial Performance

On Thursday, December 16, The Fedcap Group reported its operating and financial results for fiscal year 2021 ended September 30, 2021. These biannual presentations provide our investors including donor and funders, supply chain and other key stakeholders with regular and timely disclosures about financial and operational performance, mission-related impact, and trends and challenges for The Fedcap Group, while underscoring our commitment to fiscal transparency. View the press release.

Highlights from a very successful year—include double digit revenue growth reflecting both organic and acquisition growth, contract awards exceeding $435 million, an expanded international footprint, and the acquisition of Civic Hall, a high profile and innovative provider of advanced technology training solutions.

Christine McMahon, CEO of The Fedcap Group, said–“Year-on-year revenue growth of 23% in fiscal 2021 was led by full year contributions from our large Canadian workforce development contract and from our FY 202 acquisition of APEX Technical School, a New York City institution having graduated over 40,000 people as plumbers, electricians and other high-demand trades. Additionally, we ramped up our substantial new contract in the UK, valued at $267 million, to provide support for people who are unemployed as a direct impact of the COVID-19 pandemic.”

 

Other highlights include the employment of over 1,500 people in our commercial business operations, most of whom have disabilities or other barriers; provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services to over 40,000 people; placed 13,100 people in jobs, along with follow-on job retention services, provided services to 10,000 children ages 0-8, and launched the Greenleaf Neurodiversity Community Center in Austin, Texas, an innovative public-private partnership that serves young people with autism who are transitioning to adulthood.

Looking ahead, The Fedcap Group plans to launch an innovative digital training center leveraging the assets of both Apex and Civic Hall. This 80,000-square-foot digital training center will address the re-skilling and up-skilling of workers, supplying a trained workforce to meet the demand of our transforming economy and job landscape. And to gain a higher education platform, the agency recently announced a strategic partnership with Paul Smith’s College, located in Upstate New York. The college serves approximately 1,000 students a year, over 46 percent of whom are the first in their families to attend college.

Summing up a successful year, Christine said–“I could not be prouder of The Fedcap Group leadership and staff who have worked diligently to bring our essential services to the at-risk populations we serve. This is an indication of the strong culture that unites us and enables us to continue to make a significant impact on the lives of people with barriers to economic wellbeing in 22 states and Canada, Scotland and England.”

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The Fedcap Group Reports First Half Fiscal Year 2021 Financial and Operating Results

The Fedcap Group Reports First Half Fiscal Year 2021 Financial and Operating Results

The Fedcap Group Reports First Half Fiscal Year 2021 Operating and Financial Results

  • Double-Digit Revenue Increase Reflects Both Organic and Acquisition Growth
  • Major Contract Wins Expand International Footprint
  • Completed Two Strategic Acquisitions in the U.S.

New York, May 19, 2021 – 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 2021. Committed to providing services that positively impact the lives of people with barriers to economic wellbeing, The Fedcap Group is structured in four areas of practice: Education, Workforce Development, Occupational Health and Economic Development and operates through 21 nonprofit subsidiaries, in the U.S., Canada and the UK.

Management Comment

“The Fedcap Group’s first half performance represented a strong start to fiscal 2021. Revenues increased 18% to $152.8MM, reflecting our growing platform of services and expanding geographic footprint. During the period, we continued to execute effectively on existing contracts and increase our impact by winning large, new awards, all while managing through the challenges of COVID-19. We also completed two important strategic acquisitions: Apex Technical School in September 2020 and Civic Hall Technology Hub at the end of March 2021. Both combinations significantly advance our ability to train and upskill individuals in the technology sector—creating a pathway to long term economic wellbeing.

“First half revenue growth was led by the ramp up of the large Canadian workforce development contract we were awarded last fiscal year, increased demand for our facility management and cleaning services during the pandemic and a 6-month contribution from the Apex acquisition. Also in the first half of 2021, 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 and developmental disabilities, the previously incarcerated and those on public assistance.

“As we slowly turn the corner on the pandemic, The Fedcap Group remains committed to assisting people from across our footprint who are struggling to make ends meet, ensuring children have access to much needed educational and supportive services and helping individuals develop the skills to succeed in the changing workplace,” said Christine McMahon, President and Chief Executive Officer.

2021 Financial and Operating Metrics

Revenue for the first half of FY 2021 ending March 31, 2021 was $152.8MM, an 18% increase over the similar period last year.

The Fedcap Group provides a diversified its revenue array of services to at-risk populations across four key practice areas.

  • Economic Development is comprised of business services operations that directly employ the populations we serve. In the first half of fiscal year 2021 we employed over 1,700 people in these businesses, the majority of whom have disabilities or other barriers. Within this activity, the largest unit is Total Facilities Management, which provides services at many iconic sites in the U.S. and at government and commercial office buildings.
  • Workforce Development continues to represent the area in which The Fedcap Group serves the largest number of individuals through a broad range of services, including the Single Stop platform. In the first half of 2021, we provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services to over 21,000 people. We placed 5,900 people in jobs, along with follow-on job retention services.
  • Education and Occupational Health represent growing bodies of work in early childhood services provided through Easterseals and other programs assisting individuals with intellectual and developmental disabilities (I/DD) entering the workforce. We provided services to 5,325 children ages 0-8, designing and delivering an array of evidence-based practices that promote long term economic and social wellbeing. The Fedcap Group is also at the forefront of helping individuals with I/DD learn new trades and enter the workforce at competitive wages.

For the first half of Fiscal 2021 operating expenses were $152.2MM, 88% of which represented direct program expenses. The Fedcap Group reported an operating profit of $604 thousand for the period ended March 31, 2021 compared to an operating loss of $1.4MM in the same period last year.

As of March 31st, 2021, cash and marketable securities were $33.7MM compared with $15.9MM for the same period in the prior year, inclusive of $15MM that represented federal government-funded loans as part of the Payroll Protection Plan (PPP).

In October 2020, The Fedcap Group refinanced a portion of its outstanding debt. The line of credit capacity was increased to $42.5MM from $28MM to support the organization’s future growth.

Summary and Outlook

“The first half of fiscal year 2021 has been an exciting period for The Fedcap Group. Business conditions continued to improve as certain pandemic-related restrictions were eased, and we were able to achieve positive outcomes for an expanded universe of individuals in need. Additionally, we are very pleased with our acquisitions of Apex Technical School and Civic Hall, two high profile companies.

“Bringing Apex Technical School into The Fedcap Group provides tremendous opportunity to expand our efforts in creating pipelines from training to jobs. For nearly 60 years, Apex has provided educational opportunities that change lives. Each year, 1000+ individuals graduate with skills and certifications in trades with tremendous growth potential. This combination allows us to expand our ability to assist unemployed individuals develop new skills, especially in technology and compete in the changing marketplace.

“Civic Hall Technology Hub is a center for learning, collaboration, and technology for the public good. Founded in February 2015, Civic Hall has built a strong following with government, tech companies, media leaders, academic institutions, foundations, and community-based organizations that will support our training and upskilling services.

“In the first half, our Fedcap UK subsidiary successfully competed to provide support for people who have been directly impacted by the COVID-19 pandemic and have been unemployed between 12-18 months. The contract, valued at over $201,600MM over 4.5 years, was awarded to us in April, and represent important recognition of the track record we have established in gaining employment for individuals across England and Scotland, as well as in the US and Canada.

“As our economies emerge from the pandemic, we expect demand for services provided by the Fedcap Group to continue to increase. I could not be prouder of The Fedcap Group leadership and staff who have worked diligently to bring our essential services to the at-risk populations we serve within a very difficult operating environment. This is an indication of the strong culture that unites us and enables us to continue to make a significant impact in the lives of people with barriers to economic wellbeing,” noted Ms. McMahon.

About The Fedcap Group

For 86 years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to some of society’s most pressing needs. Serving nearly 300,000 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: Wednesday, May 19, 2021, 11:00 a.m. ET
Link to Webcast: Fedcap.org/results 

PARTICIPANT DIAL IN (TOLL FREE): 1-844-792-3735
Canada Toll Free: 1-855-669-9657
UK Toll Free: 08002799489

Financials

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

Fedcap Rehabilitation Services, Inc. and Subsidiaries Consolidated Statement of Activities

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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

  • Broadened services in key areas of focus
  • Expanded international operations
  • Effectively responded to COVID-19 health crisis
  • Strengthened liquidity and preparing for post COVID-19 challenges and opportunities

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.

  • Economic Development is comprised of business services operations that directly employ the populations we serve. In the first half of fiscal year 2020 we employed over 1,500 people in these businesses, the majority of whom have disabilities or other barriers. Within this activity, the largest unit is Total Facilities Management, which provides services at many iconic sites in the U.S. and at government and commercial office buildings. During this pandemic client demand for Total Facilities Management has increased significantly, and we have worked diligently to meet the need.
  • Workforce Development continues to represent the area in which The Fedcap Group serves the largest number of individuals through a broad range of services, including the Single Stop platform. In the first half of 2020 we provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services. We placed 5763 people in jobs and provided job retention services. We have continued to provide most of these services via video conferencing and technology platforms during the current healthcare crisis.
  • Education and Occupational Healthrepresent growing bodies of work in the areas of early childhood services provided through Easterseals and assisting individuals with intellectual and developmental disabilities (I/DD) enter the workforce. We provided services to 4421 children ages 0-8, designing and delivering an array of evidence-based practices that promote long term economic and social well-being. The Fedcap Group is also at the forefront of helping individuals with I/DD learn new trades and enter the workforce at competitive wages—ending segregated employment in sheltered workshops. Transitioning this work to a telehealth model during COVID-19 has involved engagement of families and a learning curve for staff.

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:

  • Front Line Work: COVID-19 has exposed some of the most vulnerable in society. In response The Fedcap Group’s front-line staff stepped up by:
  • Deep cleaning over 18,000 square feet of facilities.
  • Providing 27,214 pounds of food toiletries and other essentials 833 families through our child development centers and special education schools.
  • Partnering with organizations to cook 120,000 meals in our commercial kitchen and deliver to the homeless and individuals in shelters.
  • Provided childcare to health care providers and first responders.
  • Pivot Service Delivery Model as a Result of COVID-19: As regulatory bodies and government guidelines reduced or, in most locations across our footprint eliminated our ability to provide in person services, we rapidly pivoted to the provision of online learning and telehealth services.
  • 1400 staff were trained on remote work and the provision of telehealth services.
  • Provided 6556 telehealth meetings over a 6-week period
  • Expanded online educational platforms allowed us to continue to provide work readiness training and courses resulting in certification in high growth sectors.

“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
Phone: 
US: 1-844-792-3735

UK: 08002799489

Canada: 1-855-669-9657

Link to Webcast: www.fedcapgroup.org/results

Financials

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

Consolidated Statement of Activities and Changes in Net Assets

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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.

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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.

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2018 Financial and Programmatic Results

2018 Financial and Programmatic Results

Our commitment to transparency strengthens the foundation of trust with those who support and believe in our mission.

In May 2015, The Fedcap Group initiated biannual webinars to report our financial and operating results. The webinars provide stakeholders with timely disclosures about financial and operational performance, mission-related impact, and trends and challenges.

The Fedcap Group is among the first nonprofit organization to take this approach to financial reporting and transparency.  We believe this practice is long overdue in the nonprofit sector. Publicly traded companies are required by the Securities and Exchange Commission to report earnings on a quarterly and annual basis.  Nonprofits and for-profit companies share many of the same business drivers, risks and regulatory challenges, and operate in the same fiscal environment. By taking a page from the for-profit sector and disclosing our financial and operational metrics on a biannual basis, stakeholders can fully assess our impact and progress in providing relevant, sustainable outcomes for the populations we serve.

We view these webinars as strategic engagement tools for donors, funders, and business and government partners. Our commitment to transparency strengthens the foundation of trust with those who support and believe in our mission. Our stakeholders are at the center of all we do to improve communities and the lives of people with barriers to economic and social wellbeing.

Consistent with our commitment to innovation, we hope to establish a benchmark for the nonprofit industry around transparency and disclosure. Click here to view the most current release.

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