Invest in Us!

Category: News

Posted on

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.

Listen to the Audio Replay

Recent Posts

Posted on

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

Read the Transcript

Recent Posts

Posted on

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.”

View the Slide Deck
View the Press Release
Listen to the Webcast

Recent Posts

Posted on

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

Listen to the Webcast
View the Transcript

Recent Posts

Posted on

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

View the Presentation

Recent Posts

Posted on

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.

Recent Posts

Posted on

The Fedcap Group Strengthens Technology Leadership with Acquisition of Civic Hall

The Fedcap Group Strengthens Technology Leadership with Acquisition of Civic Hall

Combination to Provide Technology Training to Unemployed and Underemployed New Yorkers

New York, NY, April 2021 — The Fedcap Group, a leading nonprofit that creates opportunities for individuals facing barriers to economic well-being, announced today that it has agreed to acquire Civic Hall through a combination.

Civic Hall is a company focused on learning and collaboration to advance technology and problem-solving for the public good. Its mission is to also help those in under-represented and under-served communities get trained and find well-paying technology jobs.

“Through this acquisition, The Fedcap Group will establish a technology training platform for high-tech jobs, specifically to help New Yorkers struggling with barriers to employment as well as those newly unemployed during the pandemic,” said The Fedcap Group’s President and CEO, Christine McMahon. The initiative will also address the re-skilling and up-skilling of workers whose jobs will be lost to automation. “With 355,000 jobs in the NYC tech ecosystem, half of which require high-tech skills, we’ll supply the workforce to meet the demand of our transforming economy and job landscape,” noted Ms. McMahon.

The Fedcap Group will leverage Civic Hall’s access to a community of cutting-edge technologists with expertise and relationships with technology companies, to expand the education and training offered by its Apex Technical School, which Fedcap acquired in 2020. Apex has a strong track record of successful technical training and job placement in highly skilled positions within construction, plumbing, automotive and other trades. With the goal of preparing New Yorkers for jobs in high tech, Apex will expand its offerings to include robotics, building automation, network support, web design and more.

“Together with The Fedcap Group, we’ll create an easily accessible entry point for digital skills training for underserved New Yorkers and a steady pipeline of tech talent to help the industry become more diverse, equitable, and inclusive” said Andrew Rasiej, Founder and CEO of Civic Hall. “Upon completion we plan to expand our model nationwide and leverage The Fedcap Group’s U.S. footprint–which includes operations in 22 states.”

Ms. McMahon continued, “With high-tech jobs a key growth driver for the NYC economy, we believe this is an opportune time to move ahead with an aggressive program to prepare those who are unemployed and underemployed for positions that offer a reliable pathway to the middle class. We look forward to working with our colleagues at Civic Hall on a holistic plan to fuel the local tech sector’s growth while supporting New Yorkers who have not had access to these jobs.”

The integrated plan also involves Single Stop. Acquired by The Fedcap Group in 2017, Single Stop combines advanced technology with localized services and can ensure our trainees are connected with essential services and benefits.

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 22 states, Canada and the UK, The Fedcap Group provides education and training, workforce and economic development and necessary supports—all targeted to helping people achieve economic wellbeing. and training, workforce, and economic development and necessary supports—all targeted to helping people achieve long-term self-sufficiency.

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.

Recent Posts

Posted on

The Fedcap Group Appoints Marc S. Cooper to Board of Directors

The Fedcap Group Appoints Marc S. Cooper to Board of Directors

New York, NY, January 2021 — The Fedcap Group, a leading nonprofit that creates opportunities for individuals facing barriers to economic well-being, is pleased to announce the appointment of Marc S. Cooper to its Board of Directors.

Marc S. Cooper is Chief Executive Officer of PJ SOLOMON. He was previously Vice Chairman and joined the firm in 1999 as a Partner and Managing Director.

“I welcome Marc to The Board of the Fedcap Group. He provides a wealth of knowledge and leadership experience that will enhance our work to ensure sustainability, relevance and measurable impact,” said Mark O’Donoghue, Board Chair.

“We’re honored to have Marc join our dedicated Board of Directors. I welcome his expertise and enthusiasm as we head into the new year, eager in our mission to empower people of all abilities to live full and meaningful lives,” said Christine McMahon, President & CEO of The Fedcap Group.

As the former Head of PJ SOLOMON’s Consumer Retail group, Marc advised a long roster of high-profile retail and branded companies on mergers, acquisitions, divestitures, recapitalizations and restructurings. He is also a thought leader on capital markets and shareholder activism. These include Hudson’s Bay Company, Finish Line, Kenneth Cole, Proenza Schouler, Quiksilver, The Jones Group, Rag & Bone, Kering, Zales, At Home, Deckers, Steve Madden, Genesco and Barneys.

In 2016, Mr. Cooper led the transaction in which Natixis SA purchased 51% of PJ SOLOMON creating an enhanced global M&A advisory and financing platform. Under Marc’s leadership, PJ SOLOMON has significantly expanded and diversified its industry portfolio.

Prior to joining PJ SOLOMON, Mr. Cooper co-founded and served as Vice Chairman of Barington Capital Group. He began his career in investment banking at Kidder Peabody. He holds an MBA, magna cum laude, from New York University.

“I am proud to join the team that is making a measurable difference, replicating successful models throughout the company’s footprint in 22 states, Canada, Scotland and England,” said Mr. Cooper.

About The Fedcap Group

For 85 years, The Fedcap Group has developed innovative and scalable solutions to some of society’s most pressing problems, addressing needs and changing lives. Serving over 250,000 people each year, The Fedcap Group provides education and training, workforce, and economic development—all targeted to helping people achieve long-term self-sufficiency.

Contact

The Fedcap Group
Rose Anello
ranello@fedcap.org

View the Presentation

Recent Posts

Posted on

The Fedcap Group Reports Fiscal Year 2020 Operating and Financial Results

The Fedcap Group Reports Fiscal Year 2020 Operating and Financial Results

--Resilient performance supported by a strong programmatic, financial and technology infrastructure--

  • Remained fully operational while ensuring health and safety of personnel and clients.
  • Provided frontline services across our diversified platform.
  • Maintained our strong financial position,
  • Positioned The Fedcap Group to address post-pandemic challenges and opportunities.

New York, December 11 – 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 2020 ending September 30, 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: Education, Workforce Development, Occupational Health and Economic Development.

Management Comment

“The Fedcap Group’s fiscal 2020 performance demonstrated the resilience of our organization and our ability to manage effectively through the challenges of COVID-19. We have remained operational throughout this unprecedented health crisis, providing a broad range of services to consumers, while maintaining strict safety protocols to protect our staff. At the same time, we took action to optimize The Fedcap Group’s financial position to ensure the sustainability of our work, ending the year with relatively stable year-on-year recurring revenue levels, a strong cash position, and expanded bank credit lines,” said Christine McMahon, President and Chief Executive Officer.

“Nowhere has the pandemic been more acutely felt than in our at-risk communities, where individuals are suffering high infection rates, loss of income and a pullback in available services. We are proud of how well The Fedcap Group has been able to utilize our robust platform to provide much needed help, including: distributing over 50 tons of food, toiletries, and other essentials through our child development centers and special education schools, cooking over 160,000 meals for the homeless and food insecure in our commercial kitchen, providing childcare to health care providers and first responders, and offering remote telehealth services to tens of thousands of individuals. Similarly, our facilities management subsidiary has deep cleaned over 18 million square feet of commercial space to provide a safe working environment for thousands of individuals.

“As our staff worked tirelessly since March to address the special pandemic-related needs in our communities, 2020 was also a year in which 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 (I/DD), the previously incarcerated and those on public assistance. Throughout the year, we made targeted investments to enhance our technology infrastructure, enabling the transition to work-from-home and upgrading our financial, HR, fundraising and business development systems to create a sustainable platform from which to efficiently serve our diversified populations.

2020 Financial and Operating Metrics

Revenue for FY 2020 was $273.1 million, stable on a recurring revenue basis with the prior fiscal year. Lower year-on-year comparisons of reported revenue primarily reflect the downsizing of our home health business, which contributed additional revenues of approximately $6.7 million in 2019 and the wind-down of a large project that generated revenues of $25.2 million last year.

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 fiscal year 2020 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. During this pandemic, client demand for Total Facilities Management has increased significantly, and we have worked diligently to meet the increased cleaning needs of the over 18MM square feet of space that we maintain.
  • 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 2020 we provided functional capacity assessments, employment readiness training, vocational evaluations, and wellness services to 23,000 people. We placed just under 9,000 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 Health represent growing bodies of work in early childhood services provided through Easterseals and in our programs assisting individuals with intellectual and developmental disabilities (I/DD) enter the workforce. We provided services to 6,535 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. Transitioning this work to a telehealth model during COVID-19 has involved engagement of families and a learning curve for staff.

Fiscal 2020 operating expenses were $272.6 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating gain of $504 thousand for the year ended September 30, 2020, largely reflecting the organization’s agility during the COVID-19 crisis, pivoting to delivering services remotely, expanding COVID-related services and managing expenses in areas where revenues were impacted by the crisis.

At September 30, 2020, cash and marketable securities were $31.7 million, of which $12.5 million represented federal government-funded loans as part of the Payroll Protection Plan (PPP). At the end of fiscal 2019, cash and marketable securities were $18.5 million.

During FY20, The Fedcap Group began the process of increasing its working capital line of credit to enable the organization to effectively bid for many growth opportunities that exist. In October 2020, The Fedcap Group refinanced a portion of its outstanding debt. The line of credit capacity was increased to $42.5 million from $25 million and long-term debt was decreased by $4 million.

Summary and Outlook


“Fiscal 2020 was a tale of two halves. In the first half of the year, Fedcap was moving forward with its growth strategy, achieving positive outcomes for individuals in need, winning new contracts including a large new workforce development contract in Canada, and engaging in talks with potential acquisition candidates.

“At the onset of the pandemic, we pivoted quickly to address the dire situations that existed in many of our communities. 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 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.

“While the pandemic caused delays in several of our initiatives, we are pleased to report that in the 4th quarter of fiscal 2020, we officially brought Apex Technical School into The Fedcap Group. Since 1961, Apex Technical School has enjoyed a rich tradition of service to New Yorkers. Licensed by the New York State Education Department, the school’s founders were marine, stationary and refrigeration engineers who were well known in union and trade association activities. They developed a trade school for the purposes of offering a hands-on quality education. Nearly 60 years later, Apex continues to provide 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 the area of technology, and compete in the changing marketplace.

“We have also ramped-up our large Canadian workforce contract and are now serving a population of more than 10,000 people across Ontario. Additionally, we continue to expand our presence in the UK and we were recently selected by the UK Department of Work and Pensions (DWP) as one of 14 organizations (and the only nonprofit agency) eligible to compete for new workforce development contracts worth £2.9 billion over 4 years, throughout England, Scotland and Wales.

“We believe that the post-COVID-19 environment will provide opportunities for The Fedcap Group and similar service providers that are well-capitalized and have the scale and IT infrastructure to offer robust solutions to funders. We already are seeing greater demand for our on-premises Facilities Management Services and have added over 40 individuals to implement contract plus-ups we have received, to increase the scope of our work in this arena. There also will be expanded need for our workforce training and development work to help get individuals back to work.

“Operating in 22 states and Canada, Scotland and England, we are a leader 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 supported by a strong programmatic, financial and technology infrastructure,” 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.

Conference Call Details

Date: December17, 2020 at 11:00am ET

Webcast:

www.fedcapgroup.org/results

US: 1-844-792-3735

UK: 08002799489

Canada: 1-855-669-9657

Contact:
Ariana Reed Casasanto
646-931-2412
acasasanto@fedcap.org

Financials

Consolidated Statement of Financial Position as of September 30

Consolidated Statement of Activities as of September 30

View the Presentation

Recent Posts

Posted on

The Fedcap Group Acquires APEX Technical School

The Fedcap Group Acquires APEX Technical School

The acquisition complements and expands The Fedcap Group’s existing career training platform offered through its Fedcap Career Design School.

New York, September 2020 — The Fedcap Group, a nonprofit that develops innovative, sustainable solutions to advance the economic well-being of the impoverished and disadvantaged, has acquired Apex Technical School. This acquisition both complements and expands The Fedcap Group’s existing career training platform offered through its Fedcap Career Design School.

For over 40 years, the Fedcap Career Design Schools has helped students chart their own path–becoming trained in high growth sectors that will lead to careers. These programs are structured to teach students of diverse abilities the technical skills required to perform the tasks of a specific job. “We are thrilled to welcome Apex Tech into The Fedcap Group,” says Christine McMahon, President and CEO of The Fedcap Group. “Apex certificate programs are highly regarded and have been shown to have a substantial positive impact on economic mobility—leading to entry level careers. This acquisition also increases our class offering and ability to reach more students.”

Founded in 1961 by John R. Cann, Apex Technical School is a well-known adult vocational technical school, serving 1,400 students annually, offers seven 900-hour certificate courses in skilled trades such as: refrigeration, automotive service, auto body, welding technology, electrical and advanced electrical, plumbing and construction. Apex is accredited by the Accrediting Commission of Career Schools and Colleges and licensed by New York State Department of Education.

Apex CEO William Z Cann, says: For sixty years my family has shepherded Apex Tech and we are proud of the tens of thousands of graduate alumni. Now we look forward to continuing our legacy through The Fedcap Group. This amazing union will allow our students to access even more benefits, job opportunities and other supports offered through The Fedcap Group and its rapidly growing membership of companies. To quote our founder: “Onward and Upward!”

For more information, please contact:
Steven Zarnfaller, Director of Communications
The Fedcap Group
646-931-2329
szarnfaller@fedcap.org

Facebook-f Linkedin-in Youtube Instagram

© 2025 The Fedcap Group

Privacy Policy