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The Fedcap Group Releases First Half Fiscal Year 2024 Operating and Financial ResultsThe Fedcap Group announced its first half fiscal 2024 operational and financial results, ended March 31, 2024. Commenting on the results, Christine McMahon, President and CEO of The Fedcap Group noted, "We are pleased with the resilience that Fedcap demonstrated during this period of difficult economic and business conditions, which included growing fixed costs coupled with reduced government funding for several of our programs. Despite these challenges, we were able to increase the number of individuals served and post stable financial results, reflecting the diversity of our programs and revenue sources. As we move ahead in the second half of fiscal 2024, we will continue to prioritize organic growth, acquisitions, and new program launches to deliver positive outcomes for clients and maintain consistent financial results for the organization." "In the past six months, we completed several key initiatives, culminating in the successful launch of our innovation incubator and digital skills center, Civic Hall, in New York. Additionally, we launched a new Apex Technical School solar training program in Brooklyn, New York-increasing the education portfolio to 18 programs in four states, and we strategically expanded our presence through key acquisitions, notably the Teaching the Autism Community Trades School in Denver, Colorado. Our ongoing success in securing new contracts has enabled us to extend our service reach, exemplified by our latest workforce contract in Tennessee. Due to our exceptional service delivery, we've earned an extension for our UK Restart workforce contract. These are emblematic of initiatives that have proven positive track records with respect to benefits to individuals and society, and they are scalable to other geographies in which we are providing services." Operational Highlights The Fedcap Group operates across four key practice areas-education, workforce development, health, and economic development-through 23 nonprofit subsidiaries in 106 locations across the United States, Canada, and the United Kingdom. In the first half of fiscal 2024, The Fedcap Group served over 146,000 individuals, marking a 4.3% increase from the previous year.
Education
Workforce Development
Health
Economic Development
International
FY2023 Financial Results For the first half of FY2024, Fedcap achieved revenue of $183.5 million stable with the similar period in fiscal 2023 and in line with its expectation for full fiscal year 2024 revenues of approximately $375 million, making this another record year for the Group. As of March 31, 2024, The Fedcap Group had $27.5 million in cash and investments, total assets of $409.9 million, and long-term debt of $158.3 million. Notably, The Fedcap Group's net assets increased to $98.6 million-nearly tripling from fiscal 2020 levels. The Fedcap Group maintains a robust business development pipeline of more than $215 million and is tracking another $536.5 million in prospective opportunities. The Fedcap Group has achieved a consistent win rate of 95% on recompetes. The company's financial stability has been significantly strengthened by its strategic intent to diversify revenue sources, notably by augmenting the percentage of fee-for-service government contracts. Currently, these programs represent 14% of Group revenues, but based on the current program pipeline, Fedcap anticipates that fee-for-service contracts will increase to from 20% to 25% of revenues by the end of fiscal 2025 and grow from there in subsequent years. This change in mix will provide Fedcap with further resilience in future periods. Outlook "The Fedcap Group will continue to diversify its business operations and revenue sources through a mix of new programs, service footprint expansions, and acquisitions to optimize our funding from a variety of revenue types and programs." "Looking ahead to the remainder of fiscal 2024 and beyond, we will continue to focus on high demand markets for our services, including addressing health issues that serve as barriers to work, exporting our successful clean energy program to the UK, and deploying innovative programs to meet the needs of the perpetually underserved disability community. At the same time, we will maintain our commitment to education and training, with a view toward assisting individuals gain meaningful employment in sectors that offer good starting salaries and significant opportunities for advancement," Ms. McMahon concluded. Please see the presentation linked here.
About The Fedcap Group
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