New York, December 16, 2021 – The Fedcap Group, the parent company for a growing network of top tier nonprofit agencies, today reported its operating and financial results for fiscal year 2021 ended September 30, 2021. Committed to providing services that positively impact the lives of people with barriers to economic wellbeing, The Fedcap Group is structured in four areas of practice: Education, Workforce Development, Occupational Health, and Economic Development and operates through 21 nonprofit subsidiaries in the U.S., Canada, and the UK.
Commenting on the results, Christine McMahon, Chief Executive Officer, said, “We continued to deliver strong results in fiscal 2021, demonstrating effective execution on existing contracts, significant new awards and the contributions of recent acquisitions. We experienced solid growth across our practice areas, reflective of the positive outcomes that we have achieved for clients amid increasing demand for our services in today’s post-pandemic environment.
“Year-on-year revenue growth of 23% in fiscal 2021 was led by full year contributions from our large Canadian workforce development contract and from our acquisition of APEX Technical School, a New York City institution having graduated over 40,000 people as plumbers, electricians and other high-demand trades, that closed at the tail end of last fiscal year. Additionally, we ramped up our substantial new contract in the UK to provide support for people who are unemployed as a direct impact of the COVID-19 pandemic and have been unemployed between 12-18 months. The contract, which was awarded to Fedcap UK in April 2021 is valued at over £201.6MM ($267MM) over 4.5 years and represents important recognition of the track record we have established in gaining employment for individuals across England and Scotland, as well as in the US and Canada.”
“In fiscal 2021, we acquired Civic Hall, a learning and collaboration platform focused on advanced technology and problem-solving for the public good. Also in 2021, we continued to refine our work and gain traction in our five key areas of focus: children ages 0-8, youth transitioning from foster care, individuals with intellectual and developmental disabilities, the previously incarcerated and those on public assistance. Additionally, we succeeded in increasing the pace of contract awards in fiscal 2021, winning contracts with a total value of $435 million, setting the stage for continued growth in fiscal 2022.”
The Fedcap Group remains committed to assisting people from across our footprint who are struggling to make ends meet, ensuring children have access to much needed educational and supportive services and helping individuals develop the skills to succeed in the changing workplace.
The Fedcap Group provides a diversified array of services to at-risk populations across four key practice areas.
Revenue for FY 2021 ending September 30, 2021, was $337.2MM, a 23% increase over last fiscal year.
Operating expenses were $332.3MM, 88% of which represented direct program expenses. Operating profit was $4.9MM, significantly ahead of the $409 thousand reported in fiscal 2020.
On September 30, 2021, cash and marketable securities were $49.2MM compared with $34.2MM for the prior year, inclusive of $2.8MM that represented federal government-funded loans related to the Payroll Protection Plan (PPP).
“Fiscal year 2021 has been an exciting and productive period for The Fedcap Group. We were able to achieve positive outcomes for an expanded universe of individuals in need, achieving 96.4% of all contract deliverables, and this exceptional track record has garnered recognition for our organization both domestically and internationally. This strong performance has positioned Fedcap for continued growth as we move forward in fiscal 2022.
“In the upcoming months we expect to launch an innovative digital training center leveraging the assets of both Apex and Civic Hall. This 80,000-square-foot digital training center will address the re-skilling and up-skilling of workers, supplying a trained workforce to meet the demand of our transforming economy and job landscape.
“At the same time, we are working toward gaining a higher education platform and in early fiscal 2022 announced a strategic partnership with Paul Smith’s College, founded in 1946. Paul Smith’s College serves approximately 1,000 students a year and over 46% are the first in their families to attend college.
“We will also expand our proprietary Single Stop Technology Platform—a screening tool that drives resources to individuals working hard to find jobs and/or stay in school, augmenting our supportive services for connecting people with jobs, and enabling us to leverage technology leadership to support other non-profit organizations.
“I could not be prouder of The Fedcap Group leadership and staff who have worked diligently to bring our essential services to the at-risk populations we serve. This is an indication of the strong culture that unites us and enables us to continue to make a significant impact on the lives of people with barriers to economic wellbeing in 22 states and Canada, Scotland and England. Our strong financial position, and the dedication of our staff, give us confidence in The Fedcap Group’s ability to remain a sustainable organization supported by a strong programmatic, financial and technology infrastructure,” noted Ms. McMahon.
For 86 years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to some of society’s most pressing needs. Serving 250,000 people each year, The Fedcap Group provides educational services to every age group, vocational training in high-growth industries, behavioral health services, work readiness skill building and jobs—all targeted to helping people achieve long-term self-sufficiency.
The Fedcap Group also invests its time and resources in broader system change—working in partnership with federal, state, and local government to improve the way services are designed, funded, and delivered.
Contact: Carol Khoury, Chief Financial Officer
Date: Thursday, December 16, 2021, 11:00 a.m. ET
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