Resilient performance reflecting diverse programs and revenue streams
Number of people receiving services continues to increase
Launching new programs and strategic acquisitions to drive future growth
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New York, May 7, 2024–(BUSINESS WIRE)–FedCap Group has announced its operating and financial results for the first half of fiscal year 2024 (ending March 31, 2024).
Commenting on the results, Christine McMahon, President and CEO, FedCap Group “We are pleased with the resilience FedCap has shown during this difficult economic and business climate, including increased fixed costs and reductions in government funding for several programs. “Regardless, we were able to increase the number of fed caps.” Reflecting the diversity of our programs and revenue streams, our individuals have delivered solid performance and continue to prioritize organic growth, acquisitions, and new program launches to deliver positive results for our clients into the second half of fiscal 2024. We will provide you with the results. and maintain consistent financial results for your organization. ”
“Over the past six months, we have completed several significant initiatives and successfully launched Civic Hall, an innovation incubator and digital skills center in New York. Additionally, we have completed a number of significant initiatives, including the successful launch of Civic Hall, an innovation incubator and digital skills center in New York, and the new Apex Technical School in Brooklyn, New York. York – Increased education portfolio to 18 programs in four states and strategically expanded presence through major acquisitions, including Autism Community Trade School Education in Denver, Colorado; did. This has allowed us to continue to successfully win new contracts and expand our services. Our superior service has earned us an extension to our UK Restart employee contract, as exemplified by our most recent employee contract in Tennessee. They represent a proven commitment to benefit individuals and society. And it's expandable to other regions we serve. ”
Operational highlights
FedCap Group operates through 23 not-for-profit subsidiaries in 106 locations in the United States, Canada, and the United Kingdom across four primary practice areas: education, workforce development, health, and economic development. In the first half of fiscal 2024, FedCap Group served more than 146,000 individuals, marking a 4.3% year-over-year increase.
education
The Educational Practice segment, which represents 17% of total revenue, continued to grow rapidly with the introduction of new programs, acquisitions and locations. In the first half of fiscal 2024, FedCap opened Civic Hall, a state-of-the-art innovation incubator and digital skills training center in the heart of New York's technology industry. Acquired Autism Education Community Trade School in Denver, Colorado. He also started a new Apex Technical School solar power training program in Brooklyn, New York, and his portfolio has increased to 18 programs in four states.
Human resource development
The workforce development practice continues to perform well as the largest practice area accounting for 40% of total revenue. More than 12,000 individuals entered the workforce, an increase of 113% since his 2021. Remarkably, individuals trained and referred by FedCap continue to achieve solid employment retention rates, with 89% staying in their jobs for at least his 30 days, 81% staying in their jobs for her 90 days, and 180 In days he is 79%.
health
The health practice, which represented 6% of total revenue, continued its upward trajectory on the strength of its single-stop case management and benefit review programs. We screened her more than 30,000 individuals for federal and state benefits and found an average benefit of $19,000 per household. Across FedCap's global footprint, wellness service delivery increased by 4.2%, serving approximately 25,000 people.
Economic development
Economic development practices, which contribute 37% of total revenue, continue to provide sustainable, high-wage employment. FedCap Group focuses on promoting employment opportunities for people with disabilities, and he has directly employed over 1,000 individuals at pay levels above industry averages.
International
FedCap began international operations in 2017 and has grown to 35 locations in Canada and the UK. In the first half of 2024, Restart, the UK's largest contract providing services to the long-term unemployed, has been extended for a further two years.
Financial results for fiscal year 2023
In the first half of 2024, FedCap achieved revenue of $183.5 million, stable with the same period in 2023 and in line with the full year 2024 revenue forecast of approximately $375 million, which is a new development for the group. It was a record year.
As of March 31, 2024, FedCap Group had cash and investments of $27.5 million, total assets of $409.9 million, and long-term debt of $158.3 million. Notably, FedCap Group's net assets increased to $98.6 million, nearly tripling from fiscal year 2020 levels.
FedCap Group maintains a strong business development pipeline of over $215 million and is tracking an additional $536.5 million in potential opportunities. FedCap Group has a consistent 95% win rate on re-competitions.
The company's financial stability has been significantly strengthened by its strategic intention to diversify its revenue sources, particularly by increasing the proportion of fee-based government contracts. These programs currently account for 14% of group revenue, but based on the current program pipeline, FedCap expects pay-as-you-go contracts to increase from 20% to 25% of revenue by the end of 2025. and is expected to increase from there by 2025. Subsequent years. This change in composition should allow FedCap to gain more resilience in the future.
Outlook
“FedCap Group continues to diversify its business operations and revenue sources through a combination of new programs, service expansions, and acquisitions to optimize financing from a variety of revenue types and programs. Masu.”
“As we look to the remainder of 2024 and beyond, we will continue to build on our commitment to the future, including tackling health barriers to work, exporting our successful clean energy program to the UK and rolling out innovative programs. We continue to focus on markets where our services are in high demand, serving the needs of consistently underserved disability communities, while providing individuals with meaningful starting salaries and significant opportunities for advancement. We will continue our education and training efforts to help people gain access to affordable employment.” McMahon concluded:
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About Fedcap Group
For nearly 90 years, FedCap Group has developed scalable, innovative and potentially disruptive solutions to society's most pressing needs. FedCap Group aims to help people achieve long-term independence by providing support services to people of all ages, including educational services, job training, employment in high-growth industries, and behavioral health services. It offers. FedCap Group also invests time and resources in broader systems change, working with federal, state and local governments to improve how services are designed, financed and delivered.
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Fedcap Group Financial Statements |
||||||||
|
Consolidated statement of financial position |
||||||||
|
As of March 31st |
||||||||
|
2024 |
2023 oracle |
|||||||
|
unaudited |
unaudited |
|||||||
|
assets |
||||||||
|
cash and short term investments |
$ |
27,532,603 |
$ |
47,403,126 |
||||
|
Accounts receivable (net amount) |
71,015,737 |
58,455,385 |
||||||
|
limited liquid assets |
2,772,958 |
– |
||||||
|
Stock (net) |
431,609 |
381,693 |
||||||
|
Prepaid expenses and other assets |
3,679,193 |
4,356,848 |
||||||
|
Total current assets |
$ |
105,432,101 |
$ |
110,597,051 |
||||
|
Fixed assets (net) |
149,546,296 |
132,036,836 |
||||||
|
ROU assets |
92,666,217 |
106,078,979 |
||||||
|
restricted assets |
41,586,051 |
– |
||||||
|
beneficial remainder trust |
5,243,759 |
4,604,131 |
||||||
|
Other assets |
15,487,547 |
11,531,491 |
||||||
|
Total assets |
$ |
409,961,971 |
$ |
364,848,488 |
||||
|
liabilities |
||||||||
|
Accounts payable and accrued liabilities |
$ |
39,028,546 |
$ |
38,758,371 |
||||
|
bills payable |
1,219,854 |
1,149,088 |
||||||
|
Advance payments from government agencies |
– |
86,022 |
||||||
|
Finance lease liability |
1,384,407 |
863,266 |
||||||
|
ROU debt |
10,280,139 |
11,561,557 |
||||||
|
Other current liabilities |
11,976,185 |
11,750,523 |
||||||
|
Total current liabilities |
63,889,131 |
64,168,828 |
||||||
|
long term debt |
$ |
102,262,471 |
$ |
104,135,230 |
||||
|
ROU debt |
89,158,740 |
97,935,529 |
||||||
|
credit line |
40,651,429 |
29,345,101 |
||||||
|
Other debts |
15,451,907 |
18,579,368 |
||||||
|
Total debt |
311,413,678 |
314,164,056 |
||||||
|
net worth |
||||||||
|
No donor limit |
$ |
43,202,216 |
$ |
41,702,439 |
||||
|
Donor restrictions apply |
55,346,077 |
8,981,993 |
||||||
|
Total net assets |
$ |
98,548,293 |
$ |
50,684,432 |
||||
|
Total liabilities and net assets |
$ |
409,961,971 |
$ |
364,848,488 |
||||
|
Consolidated activity report |
||||||||
|
Periods ended March 31, 2024 and 2023 |
||||||||
|
2024 |
2023 |
|||||||
|
unaudited |
audited |
|||||||
|
revenue |
$ |
183,453,743 |
$ |
186,059,451 |
||||
|
expenses |
||||||||
|
Salary and benefits |
$ |
96,035,362 |
$ |
96,626,671 |
||||
|
Occupancy |
16,031,407 |
12,415,538 |
||||||
|
subcontractor |
16,920,855 |
18,320,797 |
||||||
|
Depreciation and amortization |
4,122,298 |
3,762,494 |
||||||
|
Interest expense |
3,124,578 |
3,149,454 |
||||||
|
Other costs |
45,111,455 |
49,384,057 |
||||||
|
total expenses, total expenses, total expenses |
$ |
181,345,955 |
$ |
183,659,011 |
||||
|
Operating profit/(loss) |
$ |
2,107,788 |
$ |
2,400,440 |
||||
|
occupancy rate |
||||||||
|
Net occupancy rate |
1.15 |
% |
1.29 |
% |
||||
|
Program expense ratio |
88 |
% |
88 |
% |
||||
|
Labor cost ratio |
53 |
% |
53 |
% |
||||
View source version on businesswire.com. https://www.businesswire.com/news/home/20240507993089/en/
contact address
Jim Malatras, 212-727-4200, (JMalatras@fedcap.org)
