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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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The Fedcap Group Launches New, International Companies to Further Advance Economic and Social Well-Being in the United Kingdom

The Fedcap Group Launches New, International Companies to Further Advance Economic and Social Well-Being in the United Kingdom

The Fedcap Group is pleased to announce the launch of two new companies in the United Kingdom, Fedcap Employment and Fedcap Scotland, extending its operations and impact throughout the U.K.

The two newly-formed companies are part of Fedcap UK–a growing network of top-tiered nonprofit agencies dedicated to the well-being of the impoverished and disadvantaged. In the U.K., the two new enterprises will oversee major employment programs across the U.K. with the hiring of 130 employees to support the continuous delivery of services to thousands of people.

Last year, The Fedcap Group, led by President & CEO Christine McMahon, expanded its footprint internationally when it combined with Kennedy-Scott, a non-profit agency that provides employment services throughout the U.K. “We are very excited about our expanding UK enterprise,” said Ms. McMahon. “The formation of these new companies means we are able to create broader impact, further leveraging the proven models we’ve developed throughout the United States. We are partnering with seasoned professionals who bring first-hand knowledge of the communities and constituencies we will be serving and who have strong partnerships with businesses and enterprises throughout the United Kingdom.”

Fedcap Employment and Fedcap Scotland will be led by workforce development expert Brian Bell. “We’re delighted to be able to help secure the jobs of many people doing amazing work across the U.K. as we look to support people back to work, or even into work for the first time,” said Mr. Bell. “We believe that everything is possible, and we’re looking forward to helping people achieve what they want. This work is just the start. We are extremely ambitious and will be building on the experience and success of our parent company, The Fedcap Group, to develop and deliver further programs of support across Britain. We will innovate and help to transform the lives of as many people as possible.”

Fedcap UK is led by its President, Grant Collins, who is also SVP for Workforce Development at The Fedcap Group. “We’re thrilled to be expanding our operations in United Kingdom to widen our global reach and scale,” said Mr. Collins. “The models we have created here in the U.S. are replicable and are having measurable and sustainable impact and now the power of those models will be felt abroad.”

For more information, please contact: Steven Zarnfaller at szarnfaller@fedcap.org.

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2018 Year End Financial and Programmatic Results

2018 Year End Financial and Programmatic Results

The Fedcap Group Reports Fiscal Year 2018 Operating and Financial Results

  • Served more than 317,000 individuals with disabilities and other barriers.
  • Achieved 14.4% revenue increase driven by organic and acquisition growth.
  • 88% of operating expenses were program-related.
  • Significantly strengthened Fedcap’s Easterseals platform in key geographies.
  • Expanded Criminal Justice Work
  • Acquired MLVE (Virginia) and Kennedy Scott (U.K.)
New York, December 11 – The Fedcap Group, a not-for-profit organization that develops innovative, sustainable solutions and opportunities for people with barriers to achieve economic well-being, today reported operating and financial results for its 2018 fiscal year ended September 30, 2018.

Management Comment

“This was another excellent year for Fedcap. We executed on several key initiatives that significantly expanded the number of individuals we served, increased our revenues at a double-digit rate through a combination of organic and acquisition growth, and continued to invest in innovation and infrastructure to ensure the sustainability of the organization,” said Christine McMahon, Fedcap’s Chief Executive Officer.

“An important highlight of fiscal 2018 was our extended footprint in early intervention, which has proven to be so critical in helping individuals with disabilities gain self-sufficiency in adulthood. During the year, we acquired Easterseals Central and North Texas and were awarded the rights to establish Easterseals locations in Mississippi, Oklahoma and South Dakota. Together with our existing operations in New York and Rhode Island, Fedcap has established an Easterseals platform that is positioned to serve an expanded population, share best practices and grow organically and through additional acquisitions.

“At the same time, we continued to intervene on behalf of specialized populations who face difficulties in gaining meaningful employment, including veterans, people with disabilities, individuals 55 years of age and over, and those exiting the criminal justice system. Our credentials have been recognized by government agencies and funders in the City of New York, where we are working on several cutting-edge programs including delivering work-readiness services within the walls of Rikers Island prison and providing job training and job placement services to those awaiting trial. Additionally, we continued to develop programs to encourage higher education for those aging out of the foster care system.

“In all cases, we leverage The Fedcap Group’s expanded services and solutions to develop innovative approaches to longstanding issues. This strategy has enabled us to win an increasing number of contracts awards from government agencies in the 22 states in which we currently operate, and grants from private sector participants. With a growing pipeline of business development opportunities, The Fedcap Group is a growth platform for like-minded organizations seeking to strengthen their impact on key issues facing populations in need,” Ms. McMahon noted.

2018 Financial and Operating Metrics

Fiscal year 2018 revenues were $295.8 million, an increase of 14.4% over the $258.5 million in revenues reported for FY17. The improvement reflects both organic and acquisition growth, primarily related to the expansion of our workforce contracts in the District of Columbia, growth of ReServe across the country, expansion of Single Stop into more community colleges, continued growth of our Total Facilities Management initiatives, and acquisitions of MVLE, Inc., and two Easterseals affiliates in Central and North Texas. Notably, Fedcap has succeeded in significantly diversifying our revenue sources over the last several years, bringing a broader array of services to at-risk populations.
  • Economic Development accounted for 33% of Fedcap’s total FY18 revenues and is composed of business services operations that directly employ the populations we serve. Economic Development revenue totaled $98.9 million in Fiscal Year 2018. Fedcap employed more than 1,500 people in these businesses, the majority of whom have disabilities or other barriers. Within this activity, the largest revenue driver was Total Facilities Management, which includes work at such iconic sites as the Statue of Liberty, Ellis Island, New York’s Pennsylvania Station, New York City courthouses, Federal Aviation Administration installations in New Jersey, and government and commercial office buildings in New York, New Jersey, Washington, D.C. and Massachusetts. Other components of Economic Development include Manufacturing, which provides outsourced assembly and production of electronic products for our military, delivered by a workforce 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, InSynergy Staffing Solutions™ and Home Health Care, where over 360 Fedcap-trained and licensed professionals provide at-home care to those in need.
  • Workforce Development accounted for 40% of FY18 revenue, or $118.7 million, and represents the area in which Fedcap serves the largest number of individuals through a broad range of services. In FY 2018, 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. We are pleased to report that The Fedcap Group placed more than 13,343 individuals in jobs during fiscal 2018 -- an increase over the prior year of 58% -- with 61% earning over $16.00 per hour. We work with 9,000 businesses nationwide. In FY 2018, our WeCARE contract surpassed 17,500 job placements, a major milestone.
    Our ReServe subsidiary reached a new record: There are currently 583 ReServists placed across the country, totaling over 6,000 since ReServe was launched in 2005. “ReServists” are retired professionals age 55+ who we place with organizations to expand capacity and create social impact in education, healthcare and poverty fighting.
  • Education and Occupational Health together accounted for more than $67.7 million in revenues, or 23% of FY18 revenue. Year-on-year growth was mainly due our growing body of work in the areas of Substance Use Disorder and Recovery in the Granite Pathways and Easterseals acquisitions. We provide a broad array of programs in the areas of behavioral health, evaluation and specialized training, assistance for youth transitioning from foster care, and vocational rehabilitation for individuals with disabilities. Over 6,000 individuals of all abilities advanced grade levels, graduated from high school, matriculated to college, graduated from college, or obtained vocational certification through our Career Design School, which offers fully certified training in Culinary Arts, Security, Facilities Management, Hospitality, Data Entry/Digital Imaging and Office Skills.

Fiscal year 2018 operating expenses were $295.3 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating profit of $501,281 for FY 2018 compared to $289,187 in the prior year.

In December 2017 The Fedcap Group completed long-term financing through a $10 million Build NYC bond to finance renovations of the state-of-the-art program center at 210 East 43 Street and headquarters located at 633 Third Avenue, New York, NY and the Oracle HCM Cloud implementation.

At September 30, 2018, cash and marketable securities were $33.4million, up from $29 million in the prior year due to investment earnings and acquisitions.

Key Contract Wins and Strategic Highlights in 2018

  • Two performance-based Temporary Assistance for Needy Families (TANF) contracts in Washington, D.C. totaling $9.9 million over 5 years.
  • Six-month extension of the $31 million Human Resources Administration (HRA) WeCARE contract for training and placement services to more than 60,000 individuals in New York City.
  • Neighborhood Improvement Grants totaling $2.3 million from 28 council members focused on local projects throughout New York City.
  • A three-year, $2.3M annual contract to ReServe through the NYC Department for the Aging.
  • A two-year, $1.9 million Jail to Jobs contract from the City of New York Mayor’s Office of Criminal Justice focused on successful reentry for previously-incarcerated individuals.
  • The Women’s Project, the first of its kind, helping women detained in Rikers Island prison because they could not make bail transition to the community with seamless care coordination.
  • A series of contracts with colleges in Rhode Island, Virginia, Louisiana, Florida and Oregon totaling $560,000 for Single Stop.

Better Together: Combinations Activity

During FY 2018, Fedcap welcomed three new organizations.

  • MVLE, a $15 million organization providing workforce, economic development and vocational rehabilitation services in Northern Virginia, combined effective April 2018.
  • Easterseals affiliates in Central and Northern Texas combined effective July 2018, adding $20 million in revenues and representing the third and fourth Easterseals acquisitions made by The Fedcap Group.
  • In December 2018, The Fedcap Group combined with Kennedy Scott, a U.K.-based workforce development agency, representing our first international operation.

Summary and Outlook

“With the completion of another year of double-digit revenue growth, The Fedcap Group has gained substantial scale as well the additional capabilities that we believe will support our ability to continue to achieve positive results for the populations we serve. As we head into fiscal 2019, we are disappointed that the New York City-funded WeCARE contract was re-designed and awarded to several new providers. We are proud of the results we achieved on this contract over the past six years, and we are equally proud that we have been asked to serve in a subcontractor capacity and technology provider by certain awardees. Our revenue comparisons for fiscal 2019 will reflect the loss of this contract, but we still expect to be able to show steady to slightly increased year-on-year revenue performance thanks to our current contract wins, our business development pipeline and the benefit of our recent acquisitions.

“The Fedcap Group’s ability to leverage complementary qualifications across our organization to win strategically important contracts provides the resources to invest in program development and infrastructure improvements to support the continued growth that we see on the horizon. In 2018 we achieved a 40% win rate for all proposal submissions. Because we are pursuing challenging and very competitive new business, we are very pleased with this result.

“We are also mindful of changes in government priorities that can limit funding for certain programs. This drives us to seek out and bid on an increasing number of contract and funding opportunities to put into practice solutions that have proven to yield positive outcomes for those in need. The Fedcap Group ended fiscal 2018 in a strong financial position, and we continue to operate with rigorous financial and risk management controls and procedures to ensure that The Fedcap Group remains a sustainable organization with sufficient infrastructure and resources to effectively serve clients, win federal-, state- and city-funded contracts and secure foundation grants. We look forward to continuing our progress in 2019 and to keeping an open dialogue with all of our stakeholders,” Ms. McMahon noted.

About The Fedcap Group

The Fedcap Group is a global network of top-tier nonprofit agencies dedicated to advancing the economic and social well-being of the impoverished and disadvantaged.  The Fedcap Group offers a growth platform for agencies to collectively showcase the Power of Possible™, enabling them to focus on delivering proven, evidence-based services and solving significant societal problems. Continually innovating in the practice areas of Education, Workforce Development, Occupational Health and Economic Development, The Fedcap Group provides solutions that break down barriers to societal inclusion and financial well-being for more than 320,000 people each year. 

Companies of The Fedcap Group deliver measurable shifts in academic advancement and economic self-sufficiency for individuals in need, in partnership with business, government, the philanthropic community, academia and local nonprofit agencies.  The Fedcap Group transforms lives and helps businesses, insurers, governments and educational institutions meet their critical objectives and Corporate Social Responsibility goals. The Fedcap Group is committed to solving problems through effective programming and continual innovation.

Conference Call Details

Date:Tuesday, December 11, 2018, 11:00 a.m. ET
Phone: 1 (844) 792-3735
Link to Webcast: Fedcap.org/results

Financials

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

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

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The Fedcap Group Acquires Kennedy Scott

The Fedcap Group Acquires Kennedy Scott

the fedcap group expands its network to advance economic opportunity internationally with acquisition of kennedy scott in the u.k.

New York, December 13 — The Fedcap Group, a nonprofit that develops innovative, sustainable solutions, creating measurable shifts in the economic outlook for the impoverished and disadvantaged, has acquired the esteemed British social services company Kennedy Scott. This combination marks the next step in building a global network of top-tier, mission-aligned organizations within The Fedcap Group.

During the past ten years The Fedcap Group has combined 14 U.S.-based organizations that collectively serve more than 320,000 people each year. The addition of Kennedy Scott is the first international expansion for The Fedcap Group.

“The leadership and talent within Kennedy Scott will multiply the impact of our combined work, extending the reach of our Workforce Development practice area headed by Senior Vice President of Workforce Development Grant Collins,” said Christine McMahon, president and CEO of The Fedcap Group.

“As the parent company of recognized brands, The Fedcap Group enables organizations to focus on delivering proven services to solve systemic problems. Through shared services and financial transparency, we empower organizations that empower individuals,” said McMahon.

About Kennedy Scott

The mission of Kennedy Scott is to support jobseekers in achieving their potential as they progress in their careers and lives. With 14 locations throughout the United Kingdom, Kennedy Scott has helped tens of thousands of people into meaningful careers. Through a strong team network Kennedy Scott innovates solutions to deliver the best possible service to help every individual reach their aspirations and career goals.

Like other companies of The Fedcap Group, the Kennedy Scott team serves individuals with complex barriers to long term self-sufficiency. They have created strong and customized Employment Recruitment programs designed to meet employers’ needs, partnering with employers throughout the U.K. to help place those they serve in jobs and careers.

About The Fedcap Group

The Fedcap Group is a global network of top-tier nonprofit agencies dedicated to advancing the economic and social well-being of the impoverished and disadvantaged. The Fedcap Group offers a growth platform for agencies to collectively showcase the Power of Possible™, enabling them to focus on delivering proven, evidence-based services and solving significant societal problems. Constantly innovating in the practice areas of Education, Workforce Development, Occupational Health and Economic Development, The Fedcap Group provides solutions that break down barriers to societal inclusion and financial well-being for more than 320,000 people each year.

Companies of The Fedcap Group deliver measurable shifts in academic advancement and economic self-sufficiency for individuals in need, in partnership with business, government, the philanthropic community, academia and local nonprofit agencies. The Fedcap Group transforms lives and helps businesses, insurers, governments and educational institutions meet their critical objectives and Corporate Social Responsibility goals. The Fedcap Group is committed to solving problems through effective programming and continual innovation.

Related links: fedcap.org

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Fedcap Announces New Structure and Executive Appointments

Fedcap Announces New Structure and Executive Appointments

NEW YORK, NY—The Board of Directors of Fedcap Rehabilitation Services, Inc., a nonprofit agency founded in New York City over 80 years ago, today announced the establishment of The Fedcap Group, Inc., the parent company of its growing network of top-tier nonprofit agencies dedicated to advancing the economic and social well-being of the impoverished and disadvantaged. As the parent organization, The Fedcap Group will provide a platform for its agencies to collectively demonstrate the Power of Possible and to support them in delivering proven services and solving systemic problems.

“This new structure affords Fedcap the ability to both deepen our domain expertise in key areas of service, namely, Economic Development, Workforce Development, Occupational Health and Education, and to utilize our geographic presence to broaden the reach of our entire organization. It is an important next step in our national and emerging international mission-driven expansion,” said Mark O’Donoghue, Chair of The Fedcap Group Board of Directors.

“The creation of The Fedcap Group speaks to our conviction that we are better together,” said Christine McMahon, President and CEO. “By leveraging the incredible talent that we have within our organization across our network, by scaling and replicating proven strategies and by sharing information to advance our strategic planning, we are positioned to make a measurable difference in the lives of those we serve.”

In addition to the appointments of Mark O’Donoghue and Christine McMahon, as Board Chair and President and CEO, respectively of The Fedcap Group, other executives moving to the parent organization are Lorrie Lutz, Chief Strategy Officer, Karen Wegmann, Chief Financial Officer, and Kenneth Brezenoff, Corporate Counsel.

The Fedcap Group will continue to work with a growing network of businesses, government agencies, community providers and academic institutions to improve lives and help our partners meet their objectives.

Additionally, two senior executives will take on expanded roles.

Steve Coons has been appointed President of Fedcap Rehabilitation Services, Inc. This company has approximately $100 million in revenues derived primarily from Ability One contracts and our economic/business enterprises in Manufacturing and Document and Print Imaging. Steve joined Fedcap in 1988 following a distinguished 25-year career with the U.S. Navy as an expert in aviation maintenance and an in-flight safety engineer.

Steve’s leadership has resulted in both an increase in revenue and our stature in the Ability One environment. Steve is known for his unwavering commitment to ensuring that individuals with disabilities are employed and have the skills to advance their careers.

“Fedcap and SourceAmerica have worked together for over 40 years helping people with disabilities acquire the skills and confidence they need to become self-sufficient, contributing members of society,” Mr. Coons said. “Through our Source America/ AbilityOne contracts we employ hundreds of people with disabilities at competitive wages with opportunities for career advancement. The launch of The Fedcap Group and our ongoing expansion throughout the country allows us to provide more jobs and opportunities to those we are privileged to serve.”

Grant Collins has been appointed President of Fedcap, Inc., our workforce development company, which has approximately $113 million in revenues in domestic and international business. Prior to joining Fedcap, Grant served as Senior VP for Workforce Service and Chief Strategist for ResCare Inc.; Special Assistant and Senior Policy Advisor to the Assistant Secretary for Children and Families, and Deputy Director of the Office of Family Assistance (OFA) within the U.S. Department of Health and Human Services (DHHS), where he administered the nation’s principal welfare program, the $16.5 billion Temporary Assistance for Needy Families (TANF) program.

Under Mr. Collins leadership, Fedcap has become a national leader in developing solutions to assist individuals on TANF obtain living wage jobs.

“We believe that the first step on the path out of poverty is to know the dignity of work,” Mr. Collins said. “Our innovative programs demonstrate that work and self-sufficiency are possible for far more families with barriers to prosperity than previously thought, and the establishment of The Fedcap Group will allow us to reach an even greater number of those families.”

The Fedcap Group

The Fedcap Group is a global network of top-tier nonprofit companies, dedicated to advancing the economic and social well-being of the impoverished and disadvantaged.  We offer a platform for our agencies to collectively showcase the Power of Possible™, enabling them to focus on delivering proven, evidence-based services and solving significant societal problems. Our innovative solutions in the areas of Education, Workforce Development, Occupational Health and Economic Development funnel through our international footprint of companies and impact the lives of over 300,000 people annually.  

In partnership with business, government, the philanthropic community, academia and local nonprofit agencies, we deliver measurable shifts in academic advancement, and economic self-sufficiency for individuals in need. Through our strong customer service approach, we assist business, insurers, local governments and educational institutions meet their critical objectives.   

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