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The Fedcap Group’s Civic Hall and RAL Development Services Finalize Agreement to House CIVIC HALL @ UNION SQUARE in New Zero Irving Development

The Fedcap Group’s Civic Hall and RAL Development Services Finalize Agreement to House CIVIC HALL @ UNION SQUARE in New Zero Irving Development

CIVIC HALL @ UNION SQUARE Will Be a State-of-the-Art Digital Skills Training Hub, Technology Incubator, and Conference and Community Space

Sponsored by The City of New York’s Economic Development Corporation, CIVIC HALL @ UNION SQUARE Will Create a Pipeline of Diverse Trained Talent to Support New York’s Growing Technology Industries

New York, October 3 – New York, NY— RAL Development Services and The Fedcap Group finalized a 25-year lease agreement to house Civic Hall @ Union Square in RAL’s new Zero Irving development at 124 East 14th Street. Zero Irving is a 21-story, 260,000-square foot tech-focused mixed-use development in the heart of Union Square. As contemplated by RAL’s winning RFP response to the New York City Economic Development Corporation that led to the launch of Zero Irving, The Fedcap Group’s Civic Hall @ Union Square will occupy 85,000 square feet on six floors and include a digital workforce training center with 25 state-of-the-art high-tech classrooms, collaborative community space, a technology start-up incubator, and modern conference and events center. Construction is scheduled to be completed and programs launched in early 2023.

The Fedcap Group’s Civic Hall @ Union Square will provide a comprehensive offering of digital skills and tech training programs—from certificates to degrees— to meet the New York City tech sector’s growing workforce need. The facility will primarily train individuals from underserved communities to provide economic well-being through well-paying sustainable tech jobs. The training and education programs will be delivered by The Fedcap Group’s nation-leading subsidiaries and partners, including Apex Technical School, Power52 Energy Solutions, Paul Smith’s College, and Fedcap Inc.—Fedcap’s workforce training arm. Additional tech training providers, focused on underserved populations working in New York City, will also be invited to utilize the Civic Hall facilities. Individuals trained at Civic Hall @ Union Square will also gain access to a suite of Fedcap’s wraparound services, including Single Stop which links individuals to essential services and benefits, financial literacy training, and other support programs.

“Civic Hall @ Union Square will be the crown jewel of digital skills training, collaboration, and innovation in the tech sector for New York City and beyond,” said Christine McMahon, President and CEO of The Fedcap Group. “Civic Hall @ Union Square will not only lift up and provide a sustainable economic future for many individuals too often left behind in our economy, but also will provide the pipeline to meet the tremendous workforce need for New York City’s thriving tech sector. I want to thank Mayor Adams, and the New York City Economic Development Corporation led by President and CEO, Andrew Kimball, as well as his entire team, for their steadfast support of this critically-important project. I also want to give special thanks to Andrew Rasiej, Co-Founder and President of Civic Hall, for his vision and unending effort to make this project happen.”

“RAL’s development ethos is to be a city builder more than a building builder. That means we take on complex projects that build toward both commercial success and social contributions. The anticipated opening of Civic Hall @ Union Square makes us particularly proud, as we believe that offering tech education in a central, transit-rich location like Union Square will make a genuine difference to the fabric of New York City. We will continue to seek out public-private deals and other projects in New York and beyond that engage our full team toward inclusive developments that enhance communities,” said Spencer Levine, President of RAL Development Services.

“Civic Hall @ Union Square will be a critical hub for New Yorkers of all backgrounds to learn new skills leading to good paying jobs and career pathways in a range of tech sectors,” said NYCEDC President & CEO Andrew Kimball. “I want to thank RAL, Fedcap, Civic Hall, my colleagues at EDC and Council Member Carlina Rivera for their leadership in creating this remarkable public-private partnership.”

A recent study found that although high-tech employment expanded by 45% since 2008—or 2.5 times faster than the New York City economy overall—and despite the fact that tech sector wages are 80% higher than for New York City jobs overall, 70% of employers faced challenges hiring in the sector. And communities of color are often left behind with Black and Latinx workers making up only 18% of the high-tech workforce.

“New York City is full of good paying jobs in exciting industries, but too many people face barriers to accessing these opportunities. I’m proud to support the work of The Fedcap Group and Civic Hall to bring real life skills training and development to people who need it the most,” said Council Member Carlina Rivera. “As we look to our economic future, we must make sure that people are prepared to take positions in growing industries, and that no one is left behind in the pandemic recovery. Working with Community Board 3 and local social services organizations, Civic Hall @ Zero Irving is an amazing opportunity to bring these vital programs to those communities most in need.”

“We must ensure that there are strong pipelines to tech sector jobs and the modern economy, and Civic Hall @ Union Square will play a crucial role in preparing New Yorkers for careers in tech,” said Manhattan Borough President Mark Levine. “I’m looking forward to watching talented New Yorkers learn, collaborate, and grow as we continue our economic recovery here in New York City.”

“This project represents New York City’s unending commitment to every New Yorker, regardless of background, or economic ability, to have the opportunity to fully participate in the 21st Century economy,” said Andrew Rasiej, Co-Founder and President of Civic Hall. “The ultimate goal is for Civic Hall @ Union Square to be a replicable model ensuring that diversity, equity, and inclusion will be the hallmark of our City’s economic future. I want to thank The Fedcap Group, the City of New York Economic Development Corporation, and RAL Development Services for fulfilling the promise we all made to our community and to our City and making the dream of Civic Hall @ Union Square a reality.”

About the Zero Irving Project
In addition to the six floors dedicated to Civic Hall @ Union Square, Zero Irving introduces 176,000 square feet of modern, trophy quality office space across the upper 14 floors of the 21-story building. Views of Midtown and Downtown Manhattan are spectacular, and alternating floors at Zero Irving boast corner double-height dedicated spaces with 23-foot ceilings, offering users distinctive high-impact space. Among the premier office building’s amenities are a large, landscaped roof deck, a 14,000 square foot event and conferencing space available to tenants, a full-service fitness center with lockers, showers and bike storage, and a ground floor indoor/outdoor food hall by Urbanspace with 12+ curated food vendors.

About The Fedcap Group
Since 1935, The Fedcap Group has developed scalable, innovative and potentially disruptive solutions to some of society’s most pressing needs. The Fedcap Group generates more than $400M of revenue annually to serve over 250,000+ people each year across an international footprint. The work of The Fedcap Group is structured within four major areas of practice—workforce development, educational services, health services, and economic development— and delivered through a growing number of top-tier companies—each focused on helping people with barriers achieve long term economic well-being.

About RAL Development Services
RAL Development Services LLC (RAL), http://ralcompanies.com/, is a real estate development firm with a three-generation, 40+ year track record of success in building complex, high-profile projects nationally and internationally. RAL’s multidisciplinary in-house expertise includes predevelopment and approvals, urban planning, architecture and design, finance, construction management, landscape architecture, marketing and leasing, and property management. RAL operates both as a principal owner/developer and as an owner’s representative, bringing its expertise to residential, commercial, mixed-use, planned communities, Resorts and hospitality, and other property types. RAL prides itself on its dedication to the communities it works with, creating strong and lasting relationships with local constituencies wherever they build, as well as employing union labor and collaborating with MWBE contractors when possible. RAL uses and believes in cutting-edge processes and technologies, but never substitutes them for the experience, ingenuity, creativity, passion, leadership, and professional judgment provided by its people.

About Civic Hall
Founded in 2015, Civic Hall is one of the nation’s leading organizations focused on learning and collaboration to advance technology and problem-solving for the public good. It has grown into a thriving community with more than 1,000 members and organizations that includes tech companies, government and nonprofit agencies and philanthropic and academic institutions and has become the center for NYC’s efforts to develop a more diverse, equitable, and inclusive technology industry. The Fedcap Group acquired Civic Hall in 2021.

Contact:
For The Fedcap Group:
Susan Walsh, 212-727-4200, (SWalsh@fedcap.org)

For RAL:
Great Ink Communications, Ltd. – 212-741-2977
Eric Waters (Eric.Waters@greatink.com)
Francisco Miranda (Francisco@greatink.com)

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Fedcap Inc. Launches the Veterans Forward Program to Help Veterans, Service Members and Their Families Across the State of Maine

Fedcap Inc. Launches the Veterans Forward Program to Help Veterans, Service Members and Their Families Across the State of Maine

Fedcap Inc.’s Veterans Forward Received $500,000 from the Federal Government to Kickstart the Program to Help Homeless Veterans

South Portland, ME—Fedcap Inc. is launching Veterans Forward to provide veterans, service members, and their families critically-needed support in emergency situations such as housing, substance use treatment, home heating assistance, food and clothing, and job training across the state of Maine. Fedcap Inc.’s Veterans Forward is essential given rising costs due to record inflation that put additional financial stress on many military families.

Grant Collins, President of Fedcap Inc. said, “We must do a better job of serving our heroes and their families who have sacrificed so much for their country, and launching Veterans Forward will help provide the support they deserve. Fedcap history is deeply rooted in serving service members, veterans and their families given we were founded by WWI veterans. This is another example of our commitment to improving the economic well-being of the people of Maine.”

Fedcap Inc. worked with the former Veterans Count Maine chapter, led by its Treasurer Dennis Brown, to create Veterans Forward. Brown said, “Fedcap welcomed us with open arms. Fedcap was quick to recognize this important need and immediately began putting the pieces together. We thank Fedcap for their dedication to our service members, veterans, and their families.”

To help kickstart the Veterans Forward program, the United States Department of Labor awarded Veterans Forward $500,000 for a Homeless Veterans Reintegration Program (HVRP) to help homeless veterans and those at risk of homelessness gain stability, get training and pursue high earning careers in Maine’s leading industries.

For more information about, or to support Fedcap Maine’s Veterans Forward program visit https://fedcapmaine.org/veteransforward/.

ABOUT FEDCAP IN MAINE
When it comes to helping Mainers, Fedcap knows how to roll up their sleeves and get the job done. Known widely for their program Families Forward and their excellence in employment services, Fedcap is expanding on what they do best to meet an ever-growing need—to serve Maine’s veterans. For over six years, Fedcap Inc. has provided services in Maine for low-income families, including veterans, through their Families Forward program. Since implementing Families Forward in 2016 they have served over 20,000 Mainers. Families Forward has assisted Mainers to secure 12,000 jobs, adding hundreds of millions to the Maine economy. Families Forward has placed more than 5,000 participants into educational activities including certification and college degree programs. Families Forward is the largest and most successful workforce development program in Maine. With sixteen offices in Maine from Sanford to Fort Kent, it has well-established community connections and the resources to provide quality care to our veterans.

CONTACT
Michael Bernier, AVP Communications/Operations, Fedcap Inc. – Serving Maine
220 Maine Mall Rd, South Portland ME
Mobile: (207) 295-5521 | Office: (207) 835-8318
mbernier@fedcap.org

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Fedcap Inc. Awarded $4 Million by the U.S. Department of Labor to Provide Pre-Release Job Training and Wrapround Services to Incarcerated People Prior to Release

Fedcap Inc. Awarded $4 Million by the U.S. Department of Labor to Provide Pre-Release Job Training and Wrapround Services to Incarcerated People Prior to Release

July 26, 2022

(New York, NY) Fedcap Inc. was awarded a $4MM Pathway Home program grant from the U.S. Department of Labor to provide training and employment services to adults reentering the workforce following incarceration in a local jail or state correctional facility. Fedcap Inc. will provide training and employment services to incarcerated people in New York City who are scheduled for release within 20 to 270 days from the time they enroll in the project. Learn more about the Pathway Home program and Fedcap Inc on the Fedcap Inc website.


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The Fedcap Group to Provide ESG Training for its 3,500 Employees and Boards of Directors for its Twenty-Three Subsidiary Companies

The Fedcap Group to Provide ESG Training for its 3,500 Employees and Boards of Directors for its Twenty-Three Subsidiary Companies

Training Program will be Created by Paul Smith’s College—a National Leader in Environmental Sustainability, Social Justice, and Innovation

New York, July 13, 2022 –The Fedcap Group, a nonprofit that develops innovative, sustainable solutions to advance the economic well-being of people with barriers, has launched an enhanced corporate sustainability training program on the principles of ESG for its 23 subsidiary companies which includes 104 members of respective boards of directors and 3,500 employees.

The Fedcap Group is committed to corporate sustainability in order to create long-term stakeholder value through the implementation of a business strategy that focuses on the ethical, social, environmental, cultural, and economic dimensions of doing business and has adopted the United Nations’ Environmental, Social, Governance (ESG) Framework. The strategies created are intended to foster longevity, transparency, and proper employee development within business organizations.

Christine McMahon, President and CEO said, “As a purpose-driven organization, our nearly 90-year history has been dedicated to enhancing the economic well-being of the people and communities we serve. Our mission informs every decision and action we take, including our firm belief that we are citizens of the communities in which we do business. We are committed to the ESG principles and spend significant time analyzing how environmental, social, and governance issues impact our business’s strategies and practices. Today’s partnership with Paul Smith’s College shows that we are not just talking the talk, but walking the walk. By providing training for the entire Fedcap Group organization, we will be able to better align our investments and programming with critical environmental, social, and governance metrics.”

The free online training will be created and provided by Paul Smith’s College. Paul Smith’s College has a 75-year history of preparing graduates for sustainable careers in business, hospitality, forestry and environmental science. The College has a leading Center on Sustainability with a mission to build a more “resilient campus and community by protecting natural ecosystems, creating economic prosperity and promoting social equity.” The College recently launched a degree in Disaster Response and Recovery, and Master’s degrees in Natural Resources Conservation and Sustainable Tourism Management modelled on ESG principles. The new training program will guide Fedcap employees through principles and application of how to operate in accord with environmental, social, and ethical principles.

President of Paul Smith’s Nicholas Hunt-Bull said, “As an educational institution committed to improving the environment, this partnership is a valuable opportunity to share our expertise with large number of practitioners at Fedcap who share those values.”

For more information on The Fedcap Group’s corporate sustainability commitment see the company’s corporate sustainability web page. 

About The Fedcap Group
Since 1935, The Fedcap Group has developed scalable, innovative and potentially disruptive solutions to some of society’s most pressing needs. The Fedcap Group generates more than $400M of revenue annually to serve over 250,000+ people each year across an international footprint. The work of The Fedcap Group is structured within four major areas of practice—workforce development, educational services, health services, and economic development— and delivered through a growing number of top-tier companies—each focused on helping people achieve long term economic well-being.

The work is delivered through the companies of The Fedcap Group, led by Executive Directors with significant local knowledge and extensive operational experience. The companies are supported by a robust central team, providing financial, human resource, technological and engagement support. This matrix structure allows The Fedcap Group to integrate its work across diverse systems and funding streams for greater impact.

About Paul Smith’s College
As the only four-year institution of higher education located in the Adirondack Park in upstate New York, Paul Smith’s provides real-world, hands-on learning in fields such as business and hospitality, culinary management, forestry, environmental sciences, and natural resources. We can draw on industries and resources available in our backyard while preparing students for successful careers anywhere. Our community of resourceful, enterprising, supportive, and adventurous individuals collectively provide experiential education, student support in the classroom and beyond, and meaningful opportunities for our alumni. We pride ourselves on research and advocacy on issues that improve our planet and the lives of the people who inhabit it. Paul Smith’s College recently received five distinctions from U.S. News and World Report’s Best Colleges, including 2nd for the most innovative schools as well as best undergraduate teaching, best colleges for veterans, best regional colleges, and top performers on social mobility, which reflects enrollment and graduated rates for economically disadvantaged students.

Contact:
Susan Walsh
The Fedcap Group
swalsh@fedcap.org

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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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First Half Fiscal Year 2022 Financial and Operating Results

First Half Fiscal Year 2022 Financial and Operating Results

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

  • Double-Digit Revenue Growth Reflects Robust Domestic and International Services Platform
  • Leveraged Fiscal 2021 Acquisitions to Further Expand Education and Workforce Development Capabilities
  • Expect Full Year 2022 to Be Another Year of Strong Growth

New York, May 12, 2022 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 fiscal 2022 ended March 31, 2022. Committed to providing services that positively impact the lives of people with barriers to economic well-being, The Fedcap Group is structured in four areas of practice: Education, Workforce Development, Health, and Economic Development and operates through 21 nonprofit subsidiaries, in the U.S., Canada and the UK.  

Commenting on the results, Christine McMahon, Chief Executive Officer, said, “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. 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.

“In the first half, we ramped up the large, multi-year contract we won 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 first half revenues.

“In the US, we leveraged our fiscal 2021 acquisitions of APEX Technical School and Civic Hall and our strategic partnership with Paul Smith’s College to further expand our footprint in Education and Training, areas of high demand in today’s dynamic workplace.

“Additionally, we continued to expand our proprietary Single Stop Technology Platform—a screening tool that drives resources to individuals seeking to find work and/or stay in school, augmenting our supportive services for connecting people with jobs. In the first half of FY 2022, Single Stop served 25,127 people, connecting them to over $88 million in resources.”

2022 First Half Operating Results

In the first half of FY 2022, 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.

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

Economic Development comprises business services operations that directly employ the populations we serve. A total of 1,800 people are employed in our commercial businesses—the majority of whom have disabilities or other employment barriers. 158 new jobs were added in first half FY 2022 in Total Facilities Management—our largest commercial enterprise. The average wage is approaching $40,000 annually.

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 FY 2022 we placed 10,685 people in jobs—nearly a 100% increase from the first half of FY 2021. 27% of new job placements earned $17.00 or more per hour.

Education represents growth in early childhood services provided through Easterseals and other programs assisting individuals with intellectual and developmental disabilities entering the workforce. We 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. Our special education school located in New Jersey achieved 100% graduation rate for seniors for the past three years.

Health
In the first half of FY 2022 we 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.

In the first half of FY2022, ReServe—a subsidiary of The Fedcap Group—was awarded over $10MM in contracts to serve New York City neighborhoods most impacted by the pandemic including funding from NYC Health and Hospitals to provide vaccine education, enrollment, and community organizing, funding from NYC Fund for Public Health expand Community Health Worker teams in neighborhoods impacted by COVID-19 and long-standing racial/ethnic inequities, and to serve as a trusted messenger campaign for Public Health Solutions to promote COVID-19 vaccination among low-income pregnant women in New York City, primarily women of color. This work has impacted the lives of over 729,606 New Yorkers.




2022 First Half Financial Metrics

The first half of fiscal year 2022 ended March 31, 2022. Revenue was $174.9MM, a 14.4% increase from the same period last year. Operating expenses were $173.3 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating profit of $1.53 million for the period ended March 31, 2022, considerably above the $604 thousand earned in the same period last year.

At March 31, 2022, cash and marketable securities were $50.2 million compared with $34 million for the prior year.

Summary and Outlook

“The first half of 2022 has been an exciting period for The Fedcap Group. We were able to achieve positive outcomes for an expanded universe of individuals, while building out our service platforms in the U.S. and internationally.

“Looking ahead, we expect to see substantial benefits from our APEX and Civic Hall acquisitions and partnership with Paul Smith’s College beginning later this fiscal year, including the launch of an innovative 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. In addition, we recently developed a new training curriculum in ‘green technologies,’ which will expand our ability to educate, prepare and train at-risk individuals for employment in the high-demand areas of clean energy and renewables.

“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. Our staff work diligently every day to bring critical services to individuals 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,” said Christine McMahon, President and Chief Executive Officer.

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 250,000 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

Join the webcast on Thursday, May 12, 2022 at 11:00 AM ET 
If you do not wish to join from your computer, you may dial-in:
US: +1-844-792-3735
Canada: +1-855-669-9657
UK: 08002799489

Financials

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

 

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

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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 Successfully Reports Fiscal Year 2021 Operating and Financial Results

The Fedcap Group Successfully Reports Fiscal Year 2021 Operating and Financial Results

  • Double Digit Revenue Growth Reflected Both Organic and Acquisition Growth
  • Full Year Contract Awards Exceed $435 Million and Expand International Footprint
  • Acquisition of High-Profile Civic Hall, an Innovative Provider of Advanced Technology Training Solutions

New York, December 16, 2021 – The Fedcap Group, the parent company for a growing network of top tier nonprofit agencies, today reported its operating and financial results for fiscal year 2021 ended September 30, 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

Commenting on the results, Christine McMahon, Chief Executive Officer, said, “We continued to deliver strong results in fiscal 2021, demonstrating effective execution on existing contracts, significant new awards and the contributions of recent acquisitions. We experienced solid growth across our practice areas, reflective of the positive outcomes that we have achieved for clients amid increasing demand for our services in today’s post-pandemic environment.

“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 acquisition of APEX Technical School, a New York City institution having graduated over 40,000 people as plumbers, electricians and other high-demand trades, that closed at the tail end of last fiscal year. Additionally, we ramped up our substantial new contract in the UK to provide support for people who are unemployed as a direct impact of the COVID-19 pandemic and have been unemployed between 12-18 months. The contract, which was awarded to Fedcap UK in April 2021 is valued at over £201.6MM ($267MM) over 4.5 years and represents 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.”

“In fiscal 2021, we acquired Civic Hall, a learning and collaboration platform focused on advanced technology and problem-solving for the public good. Also in 2021, we continued to refine our work and gain traction 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. Additionally, we succeeded in increasing the pace of contract awards in fiscal 2021, winning contracts with a total value of $435 million, setting the stage for continued growth in fiscal 2022.”

Fiscal 2021 Financial and Operating Metrics

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.

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

  • Economic Development comprises business services operations that directly employ the populations we serve. In fiscal year 2021 we employed over 1,500 people, the majority of whom have disabilities or other barriers, in these businesses. Within this activity, the largest unit is Total Facilities Management (TFM), which added 238 new jobs in FY 21; it 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 2021, we provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services to over 40,000 people. We placed 13,100 people in jobs, along with follow-on job retention services. Thirty-two percent of new job placements earned $17.00 or more per hour. This is a significant increase from the rate of higher wage earners last year at 18%.
  • 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 10,000 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. In 2021, we launched the Greenleaf Neurodiversity Community Center in Austin, Texas. This Center offers services to assist young people with autism transition to adulthood, filling a critical service gap. The Center is an example of public private partnership with the educational component funded by the Austin School District and the social and recreational services supported largely by donations from family and community members.

Revenue for FY 2021 ending September 30, 2021, was $337.2MM, a 23% increase over last fiscal year.
Operating expenses were $332.3MM, 88% of which represented direct program expenses. Operating profit was $4.9MM, significantly ahead of the $409 thousand reported in fiscal 2020.

On September 30, 2021, cash and marketable securities were $49.2MM compared with $34.2MM for the prior year, inclusive of $2.8MM that represented federal government-funded loans related to the Payroll Protection Plan (PPP).

Summary and Outlook

“Fiscal year 2021 has been an exciting and productive period for The Fedcap Group. We were able to achieve positive outcomes for an expanded universe of individuals in need, achieving 96.4% of all contract deliverables, and this exceptional track record has garnered recognition for our organization both domestically and internationally. This strong performance has positioned Fedcap for continued growth as we move forward in fiscal 2022.

“In the upcoming months we expect 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.

“At the same time, we are working toward gaining a higher education platform and in early fiscal 2022 announced a strategic partnership with Paul Smith’s College, founded in 1946. Paul Smith’s College serves approximately 1,000 students a year and over 46% are the first in their families to attend college.
“We will also expand our proprietary Single Stop Technology Platform—a screening tool that drives resources to individuals working hard to find jobs and/or stay in school, augmenting our supportive services for connecting people with jobs, and enabling us to leverage technology leadership to support other non-profit organizations.

“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. Our strong financial position, and the dedication of our staff, give us confidence in The Fedcap Group’s ability to remain a sustainable organization supported by a strong programmatic, financial and technology infrastructure,” 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 250,000 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

Contact: Carol Khoury, Chief Financial Officer
P. 212.727.4270
email: ckhoury@fedcap.org

Date: Thursday, December 16, 2021, 11:00 a.m. ET

www.fedcapgroup.org/results 

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

Financials

The Fedcap Group Consolidated Statement of Financial Position

The Fedcap Group Consolidated Statement of Financial Position

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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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Fedcap Employment Awarded £233 Million (US $330 Million) to Deliver UK Government’s Back to Work Scheme

Fedcap Employment Awarded £233 Million (US $330 Million) to Deliver UK Government’s Back to Work Scheme

--Will Leverage Employment Services Expertise to Assist 132,100 People Return to the Workforce--

NEW YORK, NEW YORK, June 4, 2021 – Fedcap Employment UK, a subsidiary of The Fedcap Group, has been chosen by the Department for Work and Pensions to deliver the Restart Scheme in the South Central area of England – covering Oxfordshire, Berkshire, Surrey, West Sussex, Hampshire and the Isle of Wight. We have also been awarded a subcontract for the North West area of England including Lancashire and Cheshire East. Fedcap Employment was the only non-profit to be awarded these contracts, which have a 4.5-year term.

Announced last year under the Commercial Agreement for the Provision of Employment and Health Related Services (CAEHRS) framework, the service provides support for people who have been directly impacted by the COVID-19 pandemic and have been unemployed between 12-18 months.

Fedcap will offer an individualized mix of face to face and virtual support to assist 132,100 individuals develop their employment skills, obtain training in high growth sectors and secure employment.

Christine McMahon, President and CEO of The Fedcap Group said, “The Fedcap Group believes in the importance of work, seeking to create opportunities for individuals to achieve economic wellbeing. We are pleased to have this opportunity to leverage the skills and experience we have developed over our 86-year history to assist governments as they rebuild and transform their economies and the lives of citizens impacted by the pandemic. We are honored that the UK Department for Work and Pensions has chosen us as a partner, and we will work diligently to meet and exceed expectations.”

Grant Collins, President, Workforce Development for The Fedcap Group noted, “The Fedcap Group is one of the highest performing employment support providers, helping 250,000 people annually advance–through education, jobs, career training and coaching. We are committed to assisting individuals achieve societal inclusion and economic wellbeing and look forward to working on this innovative scheme to support those whose livelihoods were lost or impacted due to the pandemic.”

About Fedcap Employment UK
Fedcap Employment delivers services across England and Scotland helping people find suitable and sustainable work. The organization delivers an array of employment schemes including the Intensive Personalized Employment Support and Links to Work. Fedcap Scotland is the majority owner of StartScotland, which delivers Fair Start Scotland.

About The Fedcap Group
For 86 years, The Fedcap Group has developed innovative and scalable solutions to some of society’s most pressing problems. Serving over 250,000 people each year in the US, the UK and Canada, The Fedcap Group provides education and training, workforce and economic development and necessary supports—all targeted to helping people achieve economic wellbeing.

For more information, please contact Rose Anello at 646.830.9008 or RAnello@fedcap.org.

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