“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.
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.
“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.
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.