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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.

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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

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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

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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

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Celebrating the 30th Anniversary of the Americans with Disabilities Act (ADA)

Celebrating the 30th Anniversary of the Americans with Disabilities Act (ADA)

NEW YORK, NY (July 27, 2020) — This week marks the 30th anniversary of the Americans with Disabilities Act (ADA), which President George H.W. Bush, who signed the ADA into law, described as “a declaration of equality.” The legislation was widely hailed as expanding the rights and independence of Americans with disabilities, and as “the most sweeping anti-discrimination measure since the Civil Rights Act of 1964.”

The ADA banned discrimination against people with disabilities in employment, transportation, public accommodations, communications and access to state and local government’ programs and services to ensure that people with disabilities have the same rights and opportunities as everyone else. Today we take ramps, closed captioning and workplace accommodations for granted, but prior to the ADA these were not available for the tens of millions of Americans living with a disability.

The Fedcap Group is honored to recognize the 30th anniversary of the ADA, which brought fairness, opportunity and fulfillment to the lives of millions. We understand the life-changing implications of having the opportunity to reach one’s own potential. Thanks to the ADA and the brave individuals with disabilities who fought for its passage, we no longer think of people with disabilities as different from anyone else.

There is still a long way to go to ensure full rights and participation, but we stand with the nation in celebrating this milestone legislation as well as the immeasurable contributions of people with disabilities to the safety, prosperity and well-being of our country.

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Leader to Leader: Responding to Race and COVID-19

Leader to Leader: Responding to Race and COVID-19

Nonprofit leaders speak with NYNMedia on confronting the twin challenges.

Nonprofit leaders, including Christine McMahon, President and CEO of The Fedcap Group, shared views on how COVID-19 and the Black Lives Matter movement are changing the nonprofit sector with NYNMedia. 

“Recent events create an opportunity to prioritize outcome data on black Americans and target our investments accordingly. Each of us in the nonprofit sector can have real impact by collectively shifting our attention to those outcomes that bring about economic well-being. We must significantly improve early education opportunities, designed to drive the number of children entering and completing college, perhaps the single most reliable predictor of long-term success. Lending institutions must re-think their risk profiles and success factors, adjusting their lending to enhance the economic development results of poor neighborhoods.”

Read the full article—with perspectives from nonprofit leaders in the arts, health, workforce and youth development, and other sectors—in the first of two articles discussing the changing nonprofit sector: Leader to Leader: Responding to Race and COVID-19 (part 1). 

Leaders of nonprofits are looking ahead and adapting to changing conditions, and the crisis has presented an opportunity to create real change. “Independent of COVID-19, nonprofits face structural challenges that limit our progress in improving the economic wellbeing of marginalized populations. The pandemic has only exacerbated and amplified our difficulties in advancing meaningful change. At some point, we must come to terms with the stark reality of how not-for-profits are capitalized,” said Ms. McMahon. Read the second part of this in-depth look at the nonprofit sector: Leader to Leader: The Post-COVID Nonprofit. 

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FY2020 First Half Financial and Operating Results

FY2020 First Half Financial and Operating Results

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

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

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

Management Comment

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

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

2020 Financial and Operating Metrics

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

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

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

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

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

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

Summary and Outlook

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

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

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

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

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

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

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

About The Fedcap Group

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

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

Conference Call Details

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

UK: 08002799489

Canada: 1-855-669-9657

Link to Webcast: www.fedcapgroup.org/results

Financials

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

Consolidated Statement of Activities and Changes in Net Assets

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A Consortium Led By Fedcap Inc. Selected As Service System Manager For Employment Services In The Hamilton-Niagara Area

A Consortium Led By Fedcap Inc. Selected As Service System Manager For Employment Services In The Hamilton-Niagara Area

[HAMILTON, ON February 14, 2020] – Fedcap Inc., the lead of a consortium of local GTHA-based non-profits, has been selected to help people in Hamilton-Niagara catchment area on their journey towards sustainable employment. Fedcap Inc. is set to oversee the delivery of the Government of Ontario’s new, more locally-responsive, employment services as of April 1, 2020.

The new employment services system, funded by the Government of Ontario, will be focused on providing tailored support for unemployed people, including those with disabilities, on their journey towards employment and into sustainable work. Hamilton-Niagara is one of three prototype areas where the new employment services will begin. Peel and Muskoka-Kawarthas are the other two catchment areas.

In addition to being the lead of a group of local like-minded service delivery providers to drive the transformation and help more people into work, Fedcap Inc. brings a wealth of international experience leading similar changes to employment programs both in the US and the UK.

Fedcap Inc. is a member of The Fedcap Group, which is a growing global network of non-profit agencies dedicated to advancing the economic and social well-being of those with complex needs. Since 1935, The Fedcap Group has delivered high impact outcomes by reducing barriers to societal inclusion and improving financial wellbeing through employment, working with more than 320,000 people each year.

President of Fedcap Inc. Grant E. Collins II, said: “We’re delighted to be able to help support people back to work, or even into work for the first time in the Hamilton-Niagara area. However, this is just the start – we are extremely ambitious and will be enhancing local capacity and amplifying the good work and best practices already underway. Together, we will innovate and help to transform the lives of as many people as possible. Our aim is to spread the power of possible.”

Notes to Editors

• Fedcap Inc. heads up a consortium that includes four Toronto-based non-profits: the Canadian Council on Rehabilitation and Work (CCRW), Community Living Toronto (CLTO), Corbrook, and Operation Springboard who will assist with developing effective approaches and testing new ways of helping more succeed in sustainable employment. Chronicle Analytics will provide data analysis.

• Fedcap Inc. will oversee day to day operations in the Hamilton-Niagara catchment area with an aim to build capacity within existing local delivery partners.

• The Fedcap Group has more than 80 years’ experience developing innovative, sustainable solutions and creating measurable changes for those with complex needs.

• The Fedcap Group has tremendous results in breaking down barriers to societal inclusion and financial well-being working with more than 320,000 people each year.

• During the past ten years, The Fedcap Group has combined with 14 US-based organizations and expanded to UK where it currently manages similar contracts for the governments of England, Scotland, and Wales.

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The Fedcap Group Reports Year End Fiscal Year 2019 Operating and Financial Results

The Fedcap Group Reports Year End Fiscal Year 2019 Operating and Financial Results

The Fedcap Group Reports Fiscal Year 2019 Operating and Programmatic Results

  • Continued to expand the universe of individuals served by Fedcap Group brands
  • Broadened services in key areas of focus
  • Expanded international operations

NEW YORK, N.Y. (December 19, 2019) – The Fedcap Group, the parent company for a growing network of top-tier nonprofit agencies, today reported its financial and programmatic results for fiscal 2019 ended September 30, 2019. Committed to providing services that positively impact the lives of people with barriers to social and economic well-being, The Fedcap Group operates in four main practice areas:  Workforce Development, Education, Occupational Health and Economic Development.

Management Comment

“2019 was a period of significant progress for The Fedcap Group,” said Christine McMahon, Chief Executive Officer. “We continued to refine our work in our five key areas of focus:  Children ages 0-6, youth transitioning from foster care, individuals with intellectual/developmental disabilities, the previously incarcerated and those on public assistance.  We also enhanced our technological infrastructure through upgrades to our financial, HR, fund raising and business development platforms.

“The Fedcap Group’s branded agencies provided services to over 245,000 children, youth and adults in fiscal year 2019.   Specifically, we saw a significant increase in our work with children ages 0-6, combining with Bronx-based TOTS and opening two new child development centers in NYC—serving over 5,800 children ages 0-6 this year. 

“Another key highlight was the expansion of our business in the UK where we are branded as Fedcap Employment and Fedcap Scotland.  Through these companies, we served 10,250 individuals in 2019, well exceeding expectations.   The establishment and continued development of our international operations provides a platform for us to spread our tested model of service to individuals on public assistance and replicate the positive outcomes that we have achieved domestically.”

2019 Financial and Programmatic Metrics

Fiscal Year 2019 revenues were $301.9 million, an increase of 0.9% over the $299.3 million in revenues reported for Fiscal Year 2018. 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 2019, 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. Other social enterprises include: Manufacturing, which provides outsourced assembly and production of electronic products for our military, delivered by a workforce comprised of people with disabilities; Business Solutions, which provides all aspects of back office support to government and commercial clients; and Catering, which is a growing part of our portfolio.
  • 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 2019 we provided functional capacity assessments, employment readiness training, vocational evaluations, wellness services, counseling and job placement and job retention services to an expanded universe of individuals facing significant barriers to employment.
  • Education and Occupational Health represent growing bodies of work in the areas of early childhood services provided through Easterseals and assisting individuals with intellectual and developmental disabilities (I/DD) enter the workforce. The expansion of our work with the 0-6 population allows us to design and deliver an array of evidence-based practices that promote long term economic and social well-being. The Fedcap Group is also at the forefront of helping individuals with I/DD learn new trades and enter the workforce at competitive wages—ending segregated employment in sheltered workshops.

FY 2019 operating expenses were $301.4 million, 88% of which represented direct program expenses. Fedcap reported an operating surplus of $484,413 for the year compared to  $1,422,599 in the same period last year.

In December 2018, Fedcap increased its working capital line of credit to $28 million.  We continue to evaluate the appropriate sizing of our line of credit in order to ensure that it can support our continued growth.

At September 30, 2019, cash and marketable securities were $19.1 million compared to $29.0 million at the same time last year.

Key Contract Wins in Fiscal 2019

In fiscal 2019, Fedcap was awarded and executed contracts valued at over $42 million, of which the vast majority represented new business. These included:

  • Fedcap Inc.: A $6.1 million contract to provide technology services to WeCare lll NYC.
  • Easterseals New York: The award of a Staten Island preschool, offering 3 PreK and pre-school services with $3.4 million annual budget.
  • Fedcap U.K. Inc: $12.9 million in annual contracts to Fedcap Employment U.K., Ltd. and Fedcap Employment Scotland, Ltd. to provide a diverse array of sustained employment support to 10,250 individuals with diverse barriers to employment and social inclusion.
  • Easterseals Central Texas—a $1.6 million contract awarded by the Texas Health and Human Services Commission ECI Services to provide early childhood intervention to children in and around Austin TX.

Summary and Outlook

“FY 2019 results have set the stage for another year of positive achievements at The Fedcap Group. After several years of back-to-back double-digit growth, this was a year of slightly increased revenue growth, as we absorbed the wind-down of the large WeCARE contracts, which was a significant contributor to fiscal 2018 revenues. Exclusive of that contract, revenues would have increased 17% year-on-year.  

“Looking ahead at our pipeline of award opportunities and of potential acquisitions, we are confident that our fiscal 2020 will be a year of substantial growth for Fedcap. We are leveraging complementary capabilities and qualifications across our organization to achieve positive outcomes for clients and to win strategically important contracts.  The Fedcap Group’s operations now span 22 states domestically and the United Kingdom, enabling us to serve populations in need across a broad geographic footprint.

“The Fedcap Group ended FY 2019 in a strong financial position, and we continue to operate with rigorous financial and risk management controls and procedures to ensure that we remain a sustainable organization with sufficient infrastructure and resources to effectively serve clients.

“Additionally, we continue to build out our capabilities and footprint by engaging with other like-minded service providers to explore opportunities together that have the potential to significantly strengthen our combined impact on key issues facing the populations we serve,” Ms. McMahon noted.

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 245,000 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: 12/19/19 at 11:00am EDT
Phone: 1-844-792-3735
Link to Webcast: www.fedcapgroup.org/results

Financials

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The Fedcap Group Reports First Half Fiscal Year 2019 Operating and Financial Results

The Fedcap Group Reports First Half Fiscal Year 2019 Operating and Financial Results

The Fedcap Group Reports First Half Fiscal Year 2019 Operating and Financial Results

  • Continued to expand the universe of individuals served by Fedcap brands
  • Achieved 10% revenue growth
  • Program expenses continued to account for 88% of total operating expenses
  • Broadened services in key areas of focus
  • Established and expanded international operation

NEW YORK, N.Y. (May 29, 2019) – 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 2019, ended March 31, 2019. Committed to providing services that positively impact the lives of people with barriers to social and economic well-being, The Fedcap Group operates in four main practice areas:  Workforce Development, Education, Occupational Health and Economic Development.

Management Comment

“The first half of fiscal 2019 was a period of significant progress for The Fedcap Group,” said Christine McMahon, Chief Executive Officer. “We succeeded in substantially expanding the universe of individuals served by the top-tier agencies that comprise the Group; we built out our services in key areas of focus and in new geographies; and we established and expanded our international footprint through acquisition and follow-on organic growth.

“The Fedcap Group’s branded agencies provided services to over 150,000 children, youth and adults in the first half of this fiscal year.  Additionally, we expanded our services in several critical areas. These included a considerable increase in our work with the criminal justice population, where we provided on-site and office-based employment and housing-related services to nearly 2700 individuals and we began to ramp-up new managed care contracts to provide services to at-risk populations in New York, New Hampshire and Texas through our relationships with large, for-profit insurers.

“A key highlight of the first half was our acquisition of Kennedy-Scott, a U.K.-based organization that provides employment services. With that combination completed, we were awarded additional contracts in the U.K., where we are re-branded now as Fedcap Employment and we won a contract to provide similar services in Scotland, where we are operating as Fedcap Scotland.  Through these three companies, we are projected to serve 7,400 individuals in the UK in FY 2019.    The establishment and continued development of our international operations follows The Fedcap Group’s successful completion of several international projects and represents an important platform from which to replicate the positive outcomes that we have achieved domestically.”

First Half 2019 Financial and Operating Metrics

First half fiscal year 2019 revenues were $145.3 million, an increase of 10% over the $132.2 million in revenues reported for first half FY18. Over the last several years, The Fedcap Group has significantly diversified its revenue sources over the last several years, bringing a broader array of services to at-risk populations.

  • Economic Development is comprised of business services operations that directly employ the populations we serve. In the first half of 2019, 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. Other social enterprises include: Manufacturing, which provides outsourced assembly and production of electronic products for our military, delivered by a workforce comprised of people with disabilities; Business Solutions, which provides all aspects of back office support to government and commercial clients; Catering, which is a growing part of our portfolio, Security Services, Staffing Solutions and Home Health Care, where over 350 Fedcap-trained and licensed professionals provide at-home care to those in need.
  • Workforce Development represents 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, we provided functional capacity assessments, employment readiness training, vocational evaluations, wellness services, counseling and job placement and job retention services to a diversified group of individuals, each facing significant barriers to employment.
  • Education and Occupational Health represent growing bodies of work in the areas of Substance Use Disorder and Recovery and expansion of early childhood services through Easterseals. We provide a broad array of programs in the areas of behavioral health, evaluation & specialized training, assistance for youth transitioning from foster care, and vocational rehabilitation for individuals with disabilities.

First half 2019 operating expenses were $145.3 million, 88% of which represented direct program expenses. Fedcap reported an operating surplus of $190,340 for the first half compared to $62,706 in the same period last year.

In December 2018, Fedcap increased its working capital line of credit to $28 million, a level commensurate with organization’s growth.

At March 31, 2019, cash and marketable securities were $23.3 million compared to $24.7 million at the same time last year.

Key Contract Wins in the First Half of Fiscal 2019

  • Wildcat: A 3-year, $59.4 million contract through New York State Industries for the Disabled to maintain shelter facilities for NYC homeless single adults.
  • Easterseals New York: Awarded a Staten Island preschool, offering 3 PreK and pre-school services with $3.4 million annual budget.
  • Granite Pathways: a 4-year $15.6 million contract with New Hampshire Department of Health and Human Services for residential adolescent treatment center to provide 24 x 7 services to combat the opioid crisis.
  • Fedcap U.K. Inc: $13.8 million in annual contracts to Fedcap Employment U.K., Ltd. and Fedcap Employment Scotland, Ltd. to provide a diverse array of sustained employment support to 10,000 individuals with diverse barriers to employment and social inclusion.

Summary and Outlook

“First half 2019 results have set the stage for another year of positive achievements at The Fedcap Group. New contract wins and recent acquisitions are expected to offset most of the revenue impact of the completion of a large contract that was a significant contributor to growth in fiscal 2018. The scale we have gained following several years of back-to-back, double-digit revenue growth has provided us resources to invest in program development to support the continued growth that we see on the horizon.

“The Fedcap Group ended the first half of fiscal 2019 in a strong financial position, and we continue to operate with rigorous financial and risk management controls and procedures to ensure that we remain a sustainable organization with sufficient infrastructure and resources to effectively serve clients.

“We are leveraging complementary capabilities and qualifications across our organization to achieve positive outcomes for clients and to win strategically important contracts.  The Fedcap Group’s operations now span 22 states domestically and the United Kingdom, enabling us to serve populations in need across a broad geographic footprint. Additionally, we continue to engage with other like-minded service providers to explore opportunities together that have the potential to significantly strengthen our combined impact on key issues facing the populations we serve,” Ms. McMahon noted.

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 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.

Financials

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

Consolidated Statement of Activities and Changes in Net Assets

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