New York, December 8—The Fedcap Group, the parent company for a growing family of top tier nonprofit agencies, today reported its operating and financial results for the fiscal year 2022 ended September 30th. The Fedcap Group is committed to providing services that positively impact the lives of people with barriers to economic well-being, through its network of 23 nonprofit subsidiaries, across the United States, Canada, and the United Kingdom.
“We delivered strong operating and financial results in FY 2022, achieving virtually all contract deliverables and posting an 8.8% year-on-year revenue increase, primarily driven by organic growth,” said Christine McMahon, President and Chief Executive Officer. “Our performance reflects excellent execution on existing contracts and demonstrates how well our expertise and qualifications are aligned with the priorities of funding agencies and the needs of the clients we serve. This past fiscal year has been an exciting period for The Fedcap Group, as we were able to achieve industry-leading outcomes for a greater number of individuals, while building out our service platforms in the U.S. and internationally, amplifying the positive impact of our programs.
“In fiscal 2022, we successfully expanded our education and workforce development training capabilities, described below, which provide critical bridges to the economic well-being of the communities we serve.”
Over 300 international participants attended the webcast, for which an audio playback is available.
The Fedcap Group provides a diversified array of services to break down barriers and create pathways to economic well-being. These include education and workforce training programs designed to reach at-risk and underserved populations and help place them in sustainable well-paying jobs. To achieve this mission, The Fedcap Group operates across four key practice areas: education, workforce development, health, and economic development.
The education practice has programming that spans from cradle to career. Over the past year, this practice has achieved significant growth in its early childhood services all the way through college-level vocational and credit-bearing education.
In fiscal 2022, The Fedcap Group has expanded post-secondary programming, through several key initiatives:
At Apex Technical School, we continue to train individuals and successfully place them in well-paying jobs. This past year, Apex enrolled 2,600 individuals in high demand fields such as electrical, HVAC, welding, and auto repair. A total of 1,950 completed their training program (graduation rate of 75%), and of those graduating 1,482 were placed into jobs (job placement rate of 76%). The average wage for a recent Apex graduate with no experience is approximately $41,000 per year. With some experience in the field the average wage is approximately $82,000.
Early-High School Education
Our early education programming provided through Easterseals and other programs continues to demonstrate success in assisting individuals with intellectual and developmental disabilities entering the workforce. In FY 2022 we provided services to 2,272 children ages 0-8 delivering an array of evidence-based interventions that promote long term economic and social well-being. One hundred percent of children from inclusive childcare programs entered regular kindergarten. Our special education school located in New Jersey achieved a 100% graduation rate and 100% of the graduates entered college or technical schools for the past three years.
The workforce practice continues to represent the area in which The Fedcap Group serves the largest number of individuals through a broad range of services domestically and in the United Kingdom and Canada.
We have substantially increased the number of individuals we placed in well-paying, sustainable jobs. In FY 2022 we placed 24,000 people in jobs—nearly an 80% increase from FY 2021 and a 300% increase from FY 2020—a strong trend, with 29% of new job placements earning $17.00 or more per hour.
In FY 2022, we ramped up the large, multi-year contract awarded to us in the UK to provide support for those unemployed as a direct impact of the pandemic, and we continued to effectively manage our large Canadian workforce development contract. Our work for international clients accounted for approximately 30% of total FY 2022 revenues.
In order to expand workforce and education training programs, we launched a joint venture between Fedcap Inc. and UP360—a Canadian Based Virtual Reality Technology firm. Our new VR technology will enhance and expand access to programming across The Fedcap Group family of nonprofits including in workforce, education, and health.
Among our services is the Single Stop benefits screening, case management, direct services platform, which has helped connect over 87,000 individuals needing support to an average of $12,600 per household in benefits this past fiscal year. In the aggregate Single Stop facilitated access to benefits valued at $374 million during this past fiscal year.
The health services practice continues to expand. In FY 2022 we provided wellness services to over 43,000 people (behavioral and physical health care, treatment for substance use disorders), with a view to helping them stabilize, and secure the skills and education required to achieve sustainable economic well-being.
Additionally, ReServe—a subsidiary of The Fedcap Group—was awarded over $10 million to support underserved neighborhoods disproportionately impacted by the COVID-19 pandemic, including creating community health vaccine education teams to promote the COVID-19 vaccination. We sponsored 352 community education events, distributed over 1,250,000 Covid materials including PPE, testing kits and health information and made 1,800 referrals for employment.
We continue to expand our services to veterans and military-aligned families. In FY 2022, 14,950 veterans and their families were positively impacted by at least one of the arrays of community services supported by Dixon Center for Military and Veterans Services.
Our economic development practice comprises business services operations that directly employ the populations we serve.
A total of 1,010 people are employed in our commercial businesses—the majority of whom have disabilities or other employment barriers. 156 new jobs were added in FY 2022 in Total Facilities Management—our largest commercial enterprise. The average salary is $42,550 annually.
The Fedcap Group also made significant strides in helping underserved communities that frequently lack access to capital in order to build equity for economic well-being. This year we received a $125,000 Technical Assistance grant from the federal government to assist in our launching of a Community Development Finance Institution. This is a major step forward in unlocking loans and equity to benefit communities left behind.
Revenue for FY 2022 ended September 30th, 2022, was $360 million, an 8.8% increase from the same period last year. Operating expenses were $354.3 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating profit of $5.3 million for the period ended September 30, 2022, consistent with the $5.4 million earned in the same period last year.
At September 30th, 2022, cash and marketable securities were $60.1 million compared with $53.9 million for the prior year.
“The Fedcap Group remains committed to innovation, identifying new strategies to affect change in people’s lives, and improving the systems within which services are delivered,” said Christine McMahon, President and Chief Executive Officer. “The entire Fedcap organization works diligently every day to bring critical services to individuals and communities in need across our expanding geographic footprint. As we make a positive impact on society, we also are managing to the highest Environmental, Social and Governance (ESG) standards, by reducing our energy usage, maintaining a collaborative working environment, and prioritizing transparency, specifically as we provide semi-annual updates on our operating and financial results.”
For 87 years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to some of society’s most pressing needs. Serving 340,000 people this past fiscal year, The Fedcap Group provides educational services to every age group, vocational training and job attainment in high-growth industries, as well as support services such as behavioral health services—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.