First Half 2017
Operating and Financial Results
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o The Mission:
o To create opportunities for people with barriers to economic well being
o The Structure – Four Practice Areas Operating Within an Integrated, Regional Framework:
o Economic Development, Workforce Development, Education & Occupational Health
o Community Impact Institute
o Research, Discovery, Building Evidence Based Practices and Thought Leadership
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2017 Performance Aligned With Strategic Objectives

Achieved industry‐leading outcomes for individuals with barriers to
economic well being
Sustained and grew our distinctive expertise in our core markets

Leveraged successful programs in new formats and geographies
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Utilized technology across practice areas to engage populations and
measure results

Replicated capacity building success via new contracts and
assignments

Served as a platform for smaller organizations with synergistic
missions
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First Half 2017 Fiscal Year
Highlights
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First Half 2017 Operating and Programmatic Highlights
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Won a major contract with a large Fortune 500 Company to help build
an Alternative Workforce.
Combined with Single Stop USA and within a two month timeframe
won a $10MM contract with the NY State Office of Temporary and
Disability Assistance.
200+ older individuals living in Harlem employed as ReServists through
partnership with West Harlem Development Corporation.
900 individuals served behind the walls of Rikers every day through
Wildcat’s newly awarded contract with the Department of Correction.
Launched Breaking the Cycle – a statewide workforce development
program in Maine.
 480 individuals employed within first two months.
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Revenue by Practice Area – First Half FY 2017
A Balanced Portfolio
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39%
Revenue
Economic Development Practice Highlights

Employed 1700 individuals with barriers in our own commercial
businesses.
 Average pay of $29,700.00
Expanded footprint to provide Total Facilities Management to 24
state office buildings in Delaware.
Manufactured 10,000 Lite Marker for the Department of
FACILITIES
Defense
MANAGEMENT
HOMECARE
11%


81%

Record Half Year:
$47.1M in revenue
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Workforce Development Practice Highlights
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36%
Revenue
Since 2009 Workforce Development has expanded from <1% of
total revenue to 36%.
Meeting rapidly emerging demand for employment of older
workers .
 Expanded number of ReServists placed throughout the country
to nearly 500.
Responding to growing demand for replication of highly effective
services to help people on public assistance obtain employment and
self sufficiency.
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Occupational Health and Education Practice Highlights
22%
Revenue
Education Practice Highlights
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Provided 58,900 people with wellness services to help them stabilize
and move to employment.
Single Stop USA assisted 5,000 people in enrolling in the Supplemental
Nutritional Assistance Program.
Engaged 1,878 youth in High Impact Internships, helping them create
professional networks of support.
Easterseals NY expanded its integrated child development centers now
serving 826 children with disabilities.
Easterseals continues to expands its veteran services—serving 450
veterans.
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Partnering with a Fortune 500 Company to Build an Alternative
Workforce
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Invited to submit a proposal to assist an international company build a
diverse (alternative) workforce.
Leveraged decades of experience in providing a trained and reliable
workforce to 600+ businesses and government entities across the
northeast.
Cross-agency team submitted a winning proposal.
Early estimates of 1000+ jobs in the northeast and mid Atlantic.
Opportunity can serve as a foundation for significantly expanding
number of people with barriers working in employment settings with
career ladders.
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Providing Services to Individuals At Rikers
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Serving 900 inmates daily, including a large sub-set of veterans.
Goal is to reduce violence at Rikers and to improve successful re-entry.
Designed a comprehensive curriculum to help inmates develop new skills:

Managing the impact of past trauma

Making smart decisions
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Developing healthy self-esteem
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Practicing effective and consistent parenting
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Building strong work habits
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We will also provide vocational training in high growth sectors through our Career
Design School
Upon release we will provide additional clinical services, vocational training, referrals
to needed community supports, and transitional and full time employment.
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First Half 2017 Fiscal Year
Financial Performance
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First Half 2017 Financial Review
10% year‐over‐year growth in total revenues.
 2017 growth was 50% organic and 50% due to acquisitions.
 2017 program expenses accounted for 88% of operating expenses.
 Infrastructure investments in HRIS and Oracle Cloud platform.
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Total Revenue: First Half 2012 – 2017
Revenue First Half FY 2017 Ended March 31 ($ Millions)
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Revenue Diversification Trend
First Half Fiscal 2017
First Half Fiscal 2010
WORKFORCE
DEVELOPMENT
36%
ECONOMIC
DEVELOPMENT
39%
ECONOMIC
DEVELOPMENT
93%
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Balance Sheet
$$$
9/30/2012
$ Million
9/30/2013
9/30/2014
9/30/2015
3/31/2014
3/31/2015
8.7
21.8
27.9
24.1
Total Assets
67.8
115.7
145.9
146.3
Long-Term Debt
29.8
*54.0
*79.2
*78.6
Net Assets
18.9
34.9
34.9
35.5
Cash & Investments
3/31/2016 3/31/2017
* Includes the Headquarters’ mortgage and capital lease on “service” campus
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Key Financial Ratios
 Income Statement
 Operating Margin: 0.11%
 Personnel as a % of Operating Expenses: 63%
 Balance Sheet
 Debt Coverage Ratio: 2.84
 Debt to total assets: 75%
 Current Ratio: 2.1
 Average DSOs: 54 Days
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Transformational Acquisitions Strengthen Fedcap’s Outcomes
Eight acquisitions since 2011 have broadened Fedcap’s offerings and
have extended our reach to new populations and geographies:
 Wildcat (2011) — strong presence in workforce development and credibility in serving
previously‐incarcerated individuals
 ReServe (2012) — natural fit with Fedcap’s workforce development practice area and expanded services to
older workers
 Community Work Services (2013) — provided major service hub in New England, expanded workforce
development
 Easter Seals New York (2015) — high profile brand with substantial qualifications in today’s foremost issues
 Granite Pathways (2016) — to expand our regional footprint and to lead our Occupational Health efforts in New
Hampshire
 Easter Seals Rhode Island (2016) — expanded our child development services and New England presence
 Seacoast Pathways (2017) — combined with Granite Pathways
 Single Stop (2017) — innovative brand that provides “single stop” access to entitlements and expansion of our
presence across the country
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Summary
•
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Reputation
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Financial Strength &
Growth Potential
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Engagement
Talent & Technology
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Recognized subject matter experts in key markets: Economic
Development, Workforce Development, Education, &
Occupational Health
Credible, reliable top performer
Strong Balance Sheet
Growing Family of brands benefits from added qualifications
& expertise
Robust contract & acquisition pipeline with 37% year over year
win rate
Positive client outcomes result in increasing individual
and corporate donors, business partnerships,
foundation support
Significant investment in human capital, technology and
infrastructure
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