Ben's Asphalt, Inc. 50th Anniversary

AT ANY MOMENT YOU HAVE TWO OPTIONS: EITHER TO STEP FORWARD INTO GROWTH OR STEP BACK INTO SAFETY.

ur entire family and staff are proud to commemorate 50 years of success in the Southern California asphalt industry. From the humble beginnings of a start up in 1961, to being an industry leader today, we have strived to provide quality work to each and every one of our clients. It has not always been easy, but delivering a quality product has always been our goal.

People have asked us for years how we got started, so here is our story....

Ben Skeffington: The Early Years n hopes of a better life, Ben Skeffington, with his wife Marie and daughter Debbie, moved to California in 1958. Ben grew up in Charlestown, Massachusetts, a town that some would say is tougher than most; so he learned how to take care of himself and his

nd John Sk

Billy, Ben a

effington.

Ben Skeffington, Founder

family at a very early age. His father, a Boston Fireman, provided a positive example and work ethic to Ben and his two older brothers. Eager to serve his country, Ben enlisted in the Navy in 1951 at the tender age of 16. He was assigned initially to serve in Long Beach, his first taste of the California climate. He was discharged with honors in 1955 and then returned back home to Boston.

Once back in Boston, he applied to serve as a Boston Police Officer, testing in the top five in his class. However, Ben found himself to have a change of heart, yearning to go back to sunny California. His brother and his in-laws soon followed suit and later most of the family made the move to the Golden State as well.

Ben quickly landed a job working for Helm’s Bakery as a route driver. It was here that he met his friend, Jay Ford, who moonlighted on the weekends by seal coating driveways. Jay was also a bakery route driver and when

Marie Skeffington, Matriarch

he delivered his bakery goods, he would casually ask each resident if they wanted to have their driveway freshly sealed. He explained that he could come back on the weekend and many customers took him up on his offer.

Young Ben was impressed with his friend’s enterprising spirit and when invited to join in, he jumped at the chance.

The hook was set and in 1961, Ben decided to go out on his own, full-time into the seal coat business. He would simply name his newly started company Ben’s Asphalt and eventually opened a small office in Laguna Beach. After some years, Ben semi-retired and worked out of his home.

In 1986, Ben and Billy made the decision to go at it full-time once again and acquired several thousand square feet of property, where they converted a small house into an office in the City of Garden Grove. The property, zoned for commercial use, was surrounded by several residential homes. The constant heavy

machinery noise from the trucks and equipment soon drew complaints from the neighbors. With his typical enterprising spirit, there was only one thing to do; buy out the adjoining neighbors, and that is exactly what he did.

Eventually, Ben’s Asphalt would own an entire block on a street called Trask Avenue, strategically positioned adjacent to the Garden Grove Freeway at Euclid Avenue.

Bill Skeffington Officially Joins The Family Business rom the back of his pickup truck, Ben would go door to door to solicit his seal coating services. He was soon kept company by his oldest son Bill Skeffington. Billy worked in the summer and on weekends, knocking on doors and sweeping driveways in preparation for seal coating with his dad early in life. The father and son team formed a strong bond, listening to football and baseball games

Ben Seffington, United States Navy 1955.

Marie and Ben Skeffing ton were married on June 17, 1956.

on the radio, while they performed their valuable service. Upon graduating from high school, Billy had a decision to make; attend college or start working immediately in the family business. Opting for college initially, he shortly realized his strong passion for learning the asphalt trade and returned to the family business. Since his father did not have enough work to support a full-time position, in 1982 Billy took a job with another asphalt paving company, Bonded Pavers, but continued to help his dad on the evenings and weekends. At Bonded Pavers he met John Haw and Steve Rudisel and they became close friends.

The experience at Bonded Pavers introduced Billy to the larger commercial projects, as well as ancillary work like construction of concrete curb and gutter and complete asphalt repairs. Over a 5-year period, Billy worked his way up from laboring behind a

shovel and rake to a Roller-Man, Tractor Operator and eventually Job Foreman. By 1986, Billy had gained enough experience to realize that there were more opportunities in paving parking lots, as opposed to seal coating residential driveways. Like a workhorse with blinders on, Billy Skeffington saw what he had to do and went right to work obtaining his contractor’s license. He and his father brought on Billy’s friends, John Haw and Mike Schierberl as a partners and the four began working on small paving projects. The workload was light however, and Billy often found himself sitting idle at home while waiting for work to come in the door.

Each of the men had contributed towards the venture, but there simply was not enough work to support their growing families. Mike moved on to work for his brother-in-law in the HVAC business, while Billy and John Haw signed on with Union

Ben and Marie celebrate their Silve r (25th) Wedding Anniversary.

Paving Company, who at the time was flooded with work.

John and Mike were reimbursed their investment, but Billy of course decided to maintain his ownership interest in his father’s company, Ben’s Asphalt, as he continued to assist his father on the weekends. Business was finally picking up to the point where Ben and Billy required the assistance of some other men, so Billy recruited a few guys from Union Paving and Bonded Pavers to work weekends.

Inspired by the slight growth in business, Billy went to his father with the idea of giving it one more try as a full-time occupation. This time, armed with new construction and maintenance experience, Billy was finding consistent success. He recruited a few more asphalt industry professionals and by 1992 he also had his brother John, and his good friend John Haw join the team. Ben’s Asphalt was on a roll.

In 1961 asphalt was being sold at $5.20 per ton.

Today asphalt is sold in excess of $65.00 per ton.

In 1961 a 2-Ton Pugmill (a big plant in the day) cost from $350,000 to $400,000.

Today Asphalt Plants start out at $4 million.

In 1961 Rock Base sold anywhere from 50 cents to 60 cents per ton.

Today Rock Base is going for around $10.00 per ton.

In 1961 a paving machine would cost approximately $68,000.

Today a paving machine costs approximately 4 times that price.

In 1961 a roller would cost approximately $10,000.

Today a roller costs approximately 4 times that price.

In 1961 a gallon of gas cost 27 cents a gallon.

Today a gallon of gas costs approximately $4.00.

In 1961 the average cost of a new home was $12,500.

Today a home in Orange County is still $425,000 on average.

In 1961 the average income was $5,315.00.

At 40 hours a week with 52 weeks In a year, this equates to $2.56 per hour.

In 1961 the average car cost $2,850.

Today you will spend around $32,000 for that same size car.

In 1961 eggs were 30 cents a dozen and bacon was 67 cents per pound.

Today you can buy a dozen eggs for $2.99 and a pound of bacon for around $5.00.

In 1961 Fidel Castro declared that Cuba would adopt Communism and they banned free elections.

In 1961 John F. Kennedy was inaugurated as the 35th President of The United State of America.

In 1961 President Kennedy asks Congress for $531 million to put a man on the moon.

In 1961 segregation on railways in the south comes to an end.

Asphalt was first used in the New World by indigenous people, as early as the 13th century.

US Roads have been paved with asphalt since at least 1870, when a street in front of Newark, New Jersey’s City Hall was paved.

John Skeffington Graduates From USC and Enters The Fold ohn Skeffington is five years younger than his brother Billy and after graduating a year early from high school, he decided to continue pursing higher education.

Ultimately, John graduated with a BA from the University of Southern California in 1992. John had originally planned to attend law school, after spending time with his two sisters, who were both in the legal field. He would keep them company at night and on weekends, while they worked at their respective law firms. He became very intrigued by the profession, particularly in the courtroom.

In his junior year however, while pursuing a Liberal Arts Degree as an English Major, John changed his major to Business Administration with an emphasis in accounting and marketing. Shortly thereafter, John’s education was applied to the family business with his father and brother, both of which welcomed John’s expertise in the administrative side of the company.

It was clear from the beginning that Billy and John would make a great pair of business partners. Billy serves as the visionary and driver, approaching opportunities aggressively, with the desire to grow and expand, no matter what the obstacle. John on the other hand plays a more conservative role and has a systematic approach in business. While still maintaining a strong desire, John analyzes each and every possibility before committing to a final determination. Whether it is new property, equipment or human capital, John is always contemplating the pros and cons, as well as establishing a solid plan B. John and Billy’s parents, friends, management team and business consultants all concur that the two brothers positively balance each another out to the greater benefit of their family business.

John Skeffington, President and CFO of Ben’s Asphalt further explains, “I focus on our company costs. I would much rather save 5 percent in costs than increase top line revenue by 25 percent. This mindset will benefit our company much more in every aspect of business. My father, always very disciplined, was in favor of paying for equipment in full upon delivery.

If he did not have the funds to purchase, it

John, Billy and Ben Skeffington in 1993.

Throwing out the Billy, Ben and Jo ceremonial first pitch - John, hn Haw at Ange where Ben's Asph ls Stadium alt outstanding comwas honored for their munity service.

John and Billy at one of numerous charity golf events they attend.

Marie and Billy at their granddaugh ter/nieces wedding at the Gr and Wailea in M aui.

Billy Skeffington, CEO

did not need to be purchased.

His disciplined mentality of having no debt speaks volumes in his early success.

While we use our current assets as leverage, we still adhere to my father’s original philosophy. In doing so, we maintain the highest quality standards. I am extremely proud to be a part of our family business and enjoy the legacy my mother and father left behind. I continue to work with a mindset towards accomplishing another half a century of success for our stakeholders and employees now and for the third generation of our family.”

John Skeffington, CFO

Teri Braden, VP of HR and Marketing

The 90?s Bring Change and the curbs. Today, Teri plays an integral part in the growth of Tremendous Growth the company by heading up the HR and Marketing y the mid-90’s, Ben’s Department. Coming from a Asphalt was doubling in sales background in the legal revenue each year. The profession, and with the economy was coming back expansion of Ben’s in the and the new construction 1990’s, her professional talent market was booming in was welcomed to handle the Southern California. It was Human Resources. Teri notes, also at this time that Teri “I am amazed at how far the Braden officially left the legal family business has grown. field to join the company My fondest memories of my full-time. Teri is Billy and John’s sister and has also paid father were assisting him as a kid on his seal coat driveway her dues over the years in the jobs and then as an adult family business. While Billy working with him as the was knocking on doors and company grew significantly. I sweeping driveways, Teri was painting address numbers on know how proud he is that his

John Haw, VP of Operations Nelson Smith, VP of Sales

Tien Nguyen, Corporate Controller

Ben's tool truck circa 1972.

One of Ben’s modern day tool trucks.

children have carried on his legacy through a vision that he began back in 1961.”

In 1993, Ben’s began hiring more technically qualified crews and Project Managers for their New Construction Division. It was also during this time frame that officials from the City of Garden Grove Redevelopment Agency approached Ben’s Asphalt with the idea of purchasing their construction yard. It was evident the City wanted the property for the growth of the auto mall and dealerships along the 22 Freeway. Ben, always with the community spirit, felt this would also better serve their community’s interest with the increased tax revenue it would bring to the City. Also, with the possibility of eminent domain looming over their heads, Ben and Billy agreed to sell and consequently purchased an 8-acre real estate parcel in Santa Ana, California in late 1995. The Santa Ana property was bank owned during the last recession and Ben’s was able to acquire the land and buildings at a discount price given market conditions similar to today. The existing structure was demolished in

favor of a completely new design build redevelopment project. Ben’s broke ground in 1997 and their 4-acre facility was officially open for business in April of 1998. The overall 8-acre site was split into two equal parcels. While one 4-acre parcel was utilized for Ben’s specific use to develop a state-of-the-art Corporate Headquarters, the other half was wisely developed into an investment property. This 72,000 square foot investment property was completed in 1998. John Skeffington points out, “The purchase and development of our property in Santa Ana proved to be a significant stepping stone to our future growth opportunity and potential that existed. In particular, it allowed us to grow and adapt, while freeing up capital to invest towards key employees, equipment and our overall infrastructure.”

With their focus set on the horizon, Ben’s Asphalt made a massive calculated run in the new construction arena, which generated annual revenues in excess of $65 million by the year 2000.

Ben’s acquired another facility in Anaheim in 1998 in order to focus on their

Ben and Billy circa 1966.

Maintenance Division and also acquired a trench paving operation in Riverside by the name of Medina Construction.

With the acquisition of Medina Construction from the original principals, Lonnie Prettyman and the late George Abernathy, Ben’s continued to diversify their presence into multiple asphalt paving markets.

The divisions remained separated primarily due to the fact that new construction was thriving and they wanted to be mindful not to lose focus on the backbone of the Maintenance and Repair Division.

John Skeffington reflects on this time, “The primary reason we acquired Medina was to meet the growing demand of our customers and the man behind the business, George Abernathy.

He was the grandfather of the trench paving industry, and his work ethic and manner in which he approached buisness, were a perfect fit within our business culture.

We lost George in May of 2010 due to a sudden illness.

Although the company will

Ben's Corporate Headquarters in Santa Ana, California.

never be the same without his presence and his spirit, his goodwill continues to live on in our organization today.”

With over 300 employees, Ben’s was clearly one of the largest and fastest growing asphalt paving companies in the country. With approximately $20 million in maintenance revenue and $45 million in new construction, Ben’s decided to expand their business opportunities yet again, and in 2002 they established a base materials recycling facility and C&B Crushing was born. In the year 2006, when limited trucking facilities became a constant challenge to procure and in very high demand, Ben’s officially entered the transportation business, and Ben’s Express emerged with 15 brand new strong-arm super dumps. While it seemed that nothing could slow down the Big Ben’s Machine, fate had other things in mind and some hard lessons were soon to be learned.

Finding A Way to Make It Through Tough Times n the pre 9/11 economy, Ben’s had inserted itself more heavily in the public works aspect of the asphalt construction industry. This, along with the effects of the post 9/11 economy, put a financial strain on the company’s growth and progress.

As John Skeffington, CFO, comments, “This was a particularly challenging time for Ben’s Asphalt.

Fortunately, we were well diversified and a few of our key suppliers graciously helped support us, while we recapitalized the company.

We eventually re-emerged back to good health. We suffered some loss, but we did not lose the lesson learned during this difficult transition. The experience stuck with us and guides our actions presently and for the future. We owe a great deal of thanks to our incredible

and dedicated employee team members, as well as our material suppliers, for seeing us through these trying times.

Their extraordinary hard work and loyalty will never be forgotten.”

Billy Skeffington, CEO, adds, “We are very fortunate to have people like John Haw, who showed me the ropes when I was just a kid and today serves as our VP of Operations. There are many others that I need to recognize, such as our Field Superintendent, Miles Davy, long time operator Jesus Romo, as well as our Executive Team: VP of Sales Nelson Smith, Corporate Controller Tien Nguyen and our sister, Teri Braden who serves as our Vice President of Human Resources and Marketing. These leaders, along with each and every tenured employee at Ben’s Asphalt, keep this company running smoothly and profitably, even in today’s tough economic times.”

Construction Equipment Yard.

Today the company’s revenues are half of what they were in 2008. Where the business mix was 75% new construction and 25% maintenance, it is now just the opposite with 80% maintenance and 20% new construction.

John Skeffington comments, “There is still quite a bit of deferred maintenance work as pavement has been grossly neglected in almost every industry. The vast majority of infrastructure, including the roadways and highways, are in extreme need of repair. We are currently experiencing the California economy ever so slightly beginning to rebound, but a growth spike like we have seen in the recent past is unlikely.

It will be a gradual, sustainable growth that will unfold over a long period of time. I don’t know if I would desire to get to

CEO Billy Skeffington comments, “I still enjoy looking over my shoulder when a job is finished and relishing that feeling of commitment to excellence Today and Into The Future and accomplishment. The last few years have been difficult, oday Ben’s Asphalt, and it’s because I am geared to push family of companies, have over things forward. Lately however, I’ve experienced a renewed 150 employees. Ben’s corporate feeling toward the growth of office is in Santa Ana, with our company. Not just solely operations offices in Riverside on the asphalt side, but also in and Yucaipa. The Riverside location is the home of Medina the eventual expansion through new enterprises like Construction, a DBA of Ben’s the manufacturing of our own Asphalt performing trench seal coat or someday becoming paving projects for the utility and general engineering industry. an asphalt material supplier.

Ben’s Asphalt and their associated The sky is the limit and as companies work throughout all long as I can dream, we will of Southern California and offer grow. Someday other family members may join the family services that include: new paving, maintenance and repairs, business and I want them to fabric overlays, grinding, grading, carry on the family tradition and opportunity that my excavating, concrete work, seal mother and father provided us. coating and striping. the size we were before the recession hit but we are poised and ready to meet the challenge when it does.”

Shop Maintenance Facility.

ility.

Inside the Shop Maintenance Fac

Del Mar Racetrack and Fairgrounds

My 12-year old son, Cole, is already gearing up to take over for me with a voicemail that says, ‘you have reached the future CEO of Ben’s Asphalt, please leave a message’. He is very driven and reminds me of myself quite often. He washes trucks and works around the mechanic shop helping out however he can, like I did with my father. My youngest son, William P. Skeffington II is 9-years old and also shows interest in the family business.

I also have four beautiful daughters, who I also welcome to enter the family business. I look forward to watching them all grow into promising adults that will

Menifee Crossings Aerial View Menifee Crossings Entrance

make a positive contribution to our society. I also want to recognize my wife, Laurie, who has been working by my side, from the beginning, supportive of my commitment to the company. Her steadfast confidence and support has been a major catalyst in both my personal and professional success.”

Ben Skeffington passed away almost nine years ago this November and his wife, Marie Skeffington almost 2 years ago, also in November.

Behind every successful man, you will always find a good woman. John continues, “Our mother was a lady with great dignity, class and passion. She was always there if we needed

Downey Landing (Before)

Eastvale Shopping Mall

Downey Landing (After)

Encalve Shopping Mall

her as a mother and a friend.

Someone you could count on and trust with confidence. She enjoyed the simple things in life and lived for her husband and family. Our mother and father were truly made for each other. The formation of this company, and the family that they created, is their legacy.

They started building it in their mid 20’s and continued to grow it throughout their entire lives.”

Ben’s is a monument to their pride, integrity, honesty and fair play, which made it a success for the last 50 years.

They also provided the ground work for the next 50 years with their commitment to strong family values.

Promenade Calabasas (Before)

Promenade Calabasas (After)

Repair and Maintenance: Ben’s has decades of experience in Repair and Maintenance with churches, industrial parks, schools, mobile home parks, shopping centers and parking lots.

Seal Coating: Helps asphalt retain its pliable, oil based nature. Also fills surface cracks to prevent water from entering and causing damage to your subgrade.

Grinding / Recycling: Keeping an eye on the world’s future – the removal of existing asphalt and concrete is recycled into new base material.

Transportation: By owning and operating our in-house transport company, we are able to keep critical schedules on-time and save hauling fees.

New Construction: Ben’s specializes in New Construction and Public Works projects including new grading and paving, shopping centers and industrial parks.

Striping: Our in-house team ensures your traffic ways are finished off with precision.

Demolition: By owning all equipment necessary for large and small maintenance projects, no job is too tough or complex.

Petromat / Oil Spread Division: Petromat adds extraordinary strength and is an economical option to complete remove and replace.

Billy thanks Andrew and Dan Neufeld for their generous donation.

Ben’s Asphalt holds their second annual blood drive for the American Red Cross. “Helping Save Lives - One Pint at a Time.”

Giving Back To The Community en’s Asphalt has had their share of blessings over the years and they remain ever mindful to give back to the community. Through charities like the Orange County United Way, Ben’s has donated and helped raise funds to improve the lives of Orange County children and families. In addition, they support the Orangewood Children’s Foundation, which provides love, shelter and support to Orange County children, many of which are victims of abuse, neglect and abandonment.

Last year, Ben’s Asphalt purchased, restored, decaled and sponsored three cars for the Orange County Fair Demolition Derby. The cars were eventually auctioned off to the highest bidder, who would then drive the car in the Orange County Fair Demolition Derby. The proceeds went to support the Orangewood Children’s Home and the Susan G. Komen For The Cure of Women’s Breast Cancer. Ben’s is also very involved with the Cystic Fibrosis Foundation, the American Red Cross, CREW (Commercial Real Estate Women), Helping Hands, Make a Wish, the Matt Leinart Foundation, Canyon Acres and a long list of other local charities, sports teams and various fundraisers.

The cars head out to the Orange County Fair Demolition Derby.

The orange Ben’s car struggles to stay alive.

Charities supported by Ben’s Asphalt The Ben’s Asphalt - Orangewood Children’s Home car.

T.J. Williams, Michael Schumard, Cystic Fibrosis Foundation with Billy.

John, Teri, Marie, Ben, Debbie, Laurie and Billy.

John’s Family Billy’s Family

Teri’s Family

In Conclusion en’s Asphalt attributes much of their success to having and maintaining a high level of customer satisfaction. Fifty years is no short period of time for the continuous operation of a business. In the last five decades gas has risen from $0.37 cents per gallon to $4.00 per gallon and the average cost of a home in California in 1961 was just $12,500.

At Ben’s Asphalt it is not entirely about their longevity; it has been more about what can be accomplished each and every day in their relationship with their families, community and business clients. Billy concludes, “We listen to our customer’s needs and adapt to what the client can afford.

We build and maintain relationships with all of our clients, as well as our suppliers.

This allows us to provide the best possible solution at the best overall price. Whether our client is a Property Manager, Real Estate Developer, General Contractor or Municipality, we always put our best foot forward and go the extra mile to earn and keep their business. We are not just another paving company. We are Ben’s Asphalt and we are here to stay.”

“I wanted to take a moment to share my satisfaction with Ben’s work here in West Covina. Particularly in the care and attention given to our project. It is the same good experience I had on the Plaza Bonita project that resulted in my request for bid, resulting in a contract with Ben’s Asphalt on this project.”

Henri Duisters, Project Manager, Westfield Malls

“Ben’s provided not only asphalt paving, but valuable input in accomplishing a very difficult offsite schedule. They were efficient, yet provided a safe working condition for both employees and the general public.”

Bob Rabum, Vice President of Construction, Lyle Parks, Jr.

I am very impressed with the projects that Ben’s Asphalt, Inc. has completed. Their professionalism, quality of workmanship and customer service of their entire staff is certainly a credit to their company.

Mark Wermers, Regional Maintenance Manager Riverstone Residential Group

“Your quality continues to be consistent throughout my ten years of working with Ben’s. Thank you for a job well done every time.”.

Greg Thorton, Property Manager, Sukut Construction

“Everyone was wonderful, very knowledgeable and accommodating. Every question was quickly answered.

All of our tenants were thrilled with the process and result.

They couldn’t believe how quickly it was done. Outstanding Quality.”

Kristen Masters, General Manager, The Foundation Group

“It was one of the most pleasant experiences I have had with any contractor in a long time. Everybody did their job right, from estimating to the foreman going over the job and following up with me, letting me know what to expect. My hat goes off to the crew for all their hard work and professionalism. Ben’s Asphalt exceeded all expectations. I would recommend Ben’s to anyone.

Ray Evans, Facilities Manager, Arrowhead Products

“Ben’s Asphalt has always been a consistent performer for us. Their ‘Can-Do’ attitude has made them a valued team player. Their pricing is competitive, they hit the job running with an experienced crew and get the job done quickly to high quality standards.”

Paul Santangelo, Vice President, HBI Construction “We’ve been enjoying the magnificent and gorgeous asphalt. They did a great job, went above and beyond the scope of work and leveled a few patches in the immediate area and took care of several tripping hazards.

THANK YOU!” Laura Canzone, Principal, Saddleback Valley Unified School District

“I was completely impressed with the wonderful asphalt job recently completed. It was one of the best jobs I have seen in a very long time, perhaps the best ever. I will continue to use Ben’s Asphalt for upcoming projects.”

Terry F. Parker, President, Parker Commercial Broker Co.

“Bens Asphalt is a class act! Great quality work!

Ed Lindseth, President, Lindseth Construction