Fedcap Reports First Half Fiscal Year 2018 Operating and Financial Results
May. 17, 2018
NEW YORK--(BUSINESS WIRE)--May 17, 2018--Fedcap, a not-for-profit organization that develops relevant, sustainable solutions for people to overcome barriers through four practice areas: Economic Development, Workforce Development, Educational Services, and Occupational Health, today reported its operating and financial results for the first half of its 2018 fiscal year ended March 31, 2018.
“In the first half of fiscal 2018, Fedcap continued to effectively deliver a broad range of services to an increasing number of individuals in need,” said Christine McMahon, Fedcap’s Chief Executive Officer. “We leveraged complementary capabilities and qualifications across our organization to achieve positive outcomes for clients and to win strategically important contracts that support our future growth. Additionally, we continued 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.
“We executed on 15 contracts during the first half of 2018 through which we trained and placed individuals with disabilities and other barriers to employment in jobs that offered fair wages and opportunities for advancement. At the same time, we intervened on behalf of specialized populations who have faced difficulties in gaining meaningful employment, including veterans and those exiting the criminal justice system, while developing programs to encourage higher education for those aging out of the foster care system. In all cases, we leverage Fedcap’s platform of services and solutions to develop innovative approaches to longstanding issues, which have been increasingly recognized by government agencies and private sector participants. This has resulted in a growing pipeline of business development opportunities and has positioned Fedcap to complete strategically important combinations,” Ms. McMahon noted.
First Half 2018 Financial and Operating Metrics
First half fiscal year 2018 revenues were $132.2 million, an increase of 8.1% over the $122.3 million in revenues reported for first half FY17. The improvement reflects both organic and acquisition growth, primarily related to the Breaking the Cycle Project in Maine and acquisition of Single Stop USA. Importantly, Fedcap has succeeded in significantly diversifying its revenue sources over the last several years, bringing a broader array of services to at-risk populations.
First half 2018 operating expenses were $132.2 million, 88% of which represented direct program expenses. Fedcap reported an operating profit of $62,706 for the first half compared to $135,584 in the same period last year.
In December 2017, Fedcap 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 March 31, 2018, cash and marketable securities were $24.7 million, up slightly from $24 million at the same time last year due to investment earnings and slightly lower start-up investments.
Key Contract Wins and Strategic Highlights in the First Half of Fiscal 2018Two performance-based Temporary Assistance for Needy Families (TANF) contracts in Washington DC totaling $9.9 million over 5 years. A 6-month extension on the $31 million Human Resources Administration (HRA) WeCARE contract for training and placement services to over 60,000 individuals in NYC. Neighborhood Improvement Grants totaling $2.3 million from 28 council members focused on local projects throughout New York City. A 2-year, $1.9 million Jail to Jobs contract from the New York City Mayor’s Office of Criminal Justice focused on successful reentry for previously-incarcerated individuals. The Rikers Women’s Project, the first of its kind, to support women’s issues during incarceration. A series of contracts with colleges in Rhode Island, Virginia, Louisiana, Florida and Oregon totaling $560,000 for SingleStop.
Better Together: Combinations Underway During the First Half of Fiscal 2018Fedcap welcomed MVLE, a $15 million organization, providing workforce, economic development and vocational rehabilitation services in Northern Virginia, effective April 2018. A combination with Easter Seals affiliates in Central and Northern Texas will be effective as of July 2018, adding $20 million in revenues and representing the 3 rd and 4 th Easter Seals acquisitions made by Fedcap.
Summary and Outlook
“The scale we have gained thanks to several years of back-to-back, double digit revenue growth has provided Fedcap with resources to invest in program development and infrastructure improvements to support the continued growth that we see on the horizon.
“Our first half fiscal 2018 results reflected strong demand for Fedcap’s high-impact services and our emphasis on achieving positive and measurable results. Additionally, we succeeded in completing the acquisition of MVLE and substantially expanding the geographic reach of our operations through the pending acquisitions of Easter Seals in North and Central Texas. Through our Single Stop USA subsidiary, we connected over 100,000 individuals to services and life sustaining benefits to overcome poverty and become gainfully employed. Today, the Fedcap family of brands provides a platform of services and solutions that can be effectively deployed to address the needs of clients in 22 states.
“We continue to be mindful of changes in government policy that could impact our operations, and ultimately the at-risk populations we serve. 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. Fedcap ended the first half of fiscal 2018 in a strong financial position, and we continue to operate with rigorous financial and risk management controls and procedures to ensure that Fedcap remains a sustainable organization with sufficient infrastructure and resources to effectively serve clients, win federal, state and city-funded contracts and to secure foundation grants. We look forward to continuing our progress in 2018 and to keeping an open dialogue with all of our stakeholders,” Ms. McMahon noted.
A not-for-profit founded in 1935, Fedcap develops innovative, creative and sustainable solutions that help people overcome barriers to economic well-being. In the first half of FY 2018, Fedcap’s educational, vocational training, job placement, post placement support and advocacy programs helped more than 200,000 individuals rebuild their lives and build a pathway to long term economic well-being.
View source version on businesswire.com:https://www.businesswire.com/news/home/20180517005143/en/
Christine McMahon, CEO
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE
Copyright Business Wire 2018.
PUB: 05/17/2018 09:00 AM/DISC: 05/17/2018 09:01 AM