Teal 2015 Year in Review

TEAL CONSTRUCTION EDUCATION 26% AUTO DEALERSHIPS 34%

HEALTHCARE

CIVIC 16%

2% INDUSTRIAL 4% BANKS 8%

OFFICE | RETAIL 10%

A WORD

FROM OUR OWNER JOHN MURRAY, JR

Happy New Year! It’s a great new year and we welcome 2016 with open arms; we have a lot of work to accomplish and we look forward to our many opportunities this year. Last year we exceeded our business plan sales goal by over $20 million by achieving just over $100 million in sales. That is tremendous news for all Teal employees for this year and the future ahead of us. Our goal for 2016 is to complete over $100 million in work. This is a major milestone achievement in our future growth.

We have definitely taken Teal to a new level and must stay on top of our game every day. Teal is approaching it’s 70th year in business. It started in 1947 as Murray Building Company and became Teal Construction in 1959. Yes, we are named after a duck. Throughout the years, Teal has had the opportunity to work with some amazing clients and design professionals that have been with us as we have developed into the company we are today. We thank each and every one of you that has continued to partner with us and are appreciative of those that we have gained.

Teal continues to diversify their portfolio with new markets such as Healthcare, Higher Education and Civic work. In 2016, we plan to cultivate these markets as well as keep perfecting our craft in Auto Dealerships, Financial Institutions, and Industrial sectors.

It has been a hard six years we have survived and come back strong from the longest and toughest recession any of us have ever seen. We are successful because of the effort, ingenuity, willingness and just plain hard work that our employees have put forth. I am very proud and thank each and every one of them. I do want to say how grateful and proud I am to be blessed to work with such a group of professionals. I especially thank our “under 40 team” as you are the ones that bring the new technology and energy to take this company into it’s next generation.

Always improving our system efficiency and team members abilities is our primary goal. We have continued through 2015 expanding our training opportunities, technology and investments to form our team and company in the industry. Teal works each day to be up to date with industry trends and ahead of the curve. We are thoroughly enthusiastic about our future and look forward to the evolution of Teal.

Sincerely -

John A. Murray, Jr

2015 PROJECT WINS 46% 29% HARD AR RD B BID ID AWARDED WAR RDED

CM AT RISK AWARDED

57% PUBLIC PUBLIC 43% PRIVATE RIVATE

14% DESIGN+BUILD AWARDED 100% PRIVATE

58% PUBLIC PUBL 42% PRIVATE PRIVAT

11% NEGOTIATED AWARDED

100% PRIVATE

ESTIMATING TEAM DeWayne Lucas - Director of Preconstruction | Chief Estimator, Houston Michael Miller - Director of Business Development | Chief Estimator, Corpus Christi Jennifer King - Director of Marketing, Houston & Corpus Christi Dave Ogden - Chief Estimator, Houston Kelly Richardson - Estimating Coordinator | Marketing Coordinator, Houston & Corpus Christi April Patterson - Estimating Coordinator, Corpus Christi

TEAL PROJECTS COMPLETED Mike Pettus Superintendent of the Year Houston Mike Pettus came to Teal four years ago as a Superintendent.

He has worked on both public and private, ground up and renovation. Mike is currently working on the Houston Community College Acres Homes Academic Center. Mike is a proactive Superintendent that sees the big picture which allows him to point out obstacles before they occur to keep projects on track.

“Mike Pettus emulates what a Superintendent and employee should be. He never let’s an obstacle hold him back instead finds solutions to them before they occur. His vast experience in construction and precise attitude on getting the job done makes Mike invaluable to our company’s growth.”

BARC ADOPTION CENTER

FINNEGAN CHEVROLET

“Mike Pettus’ preconstruction review of every project I’ve been on with him has been second to none. His attention to detail and constructability reviews not only help the design team but also assure the project won’t be held up by unforeseen issues in the plans and specifications.”

Completed Projects Finnegan Buick GMC Frost Bank - Woodlands COH - North Administration Building BARC Adoption Center

FROST BANK - BOULEVARD

HOUSTON COMPLETED PROJECTS

EASTERN REGIONAL PARK POOL COMPLEX PM: Jerry Stafford E: Jerry Stafford Super: Barry Peel PC: Chantela Rowland The Eastern Regional Park project consisted of a new 50 meter swimming pool, kid splash pad, restroom/ locker room and concession facility, and landscaping connecting the existing park to the new pool area. The landscaping was designed to set up different areas for seating around the pool, rather than the typical lounge chairs on the pool deck, Teal added masonry benches built into the terrain. The new landscape design gave the patrons areas to receive natural shade and a pavilion next to the young children splash pool.

DEMONTROND VOLVO

PM: John LeBlanc & John Shead Super: Taylor Macon E: Dave Ogden PC: Connie Enmon The 8,500 SF brand reimage involved high-end finish upgrades and new exterior envelope. The new modern design allows for a large amount of daylight and clean interior finishes that compliment the outdoor-recreation photo murals throughout the showroom. A unique feature at the Volvo store is the bamboo flooring that is located in the customer lounge area. The open concept showroom has two different sales areas, customer lounge and space for five vehicles. This is our sixth project completed with the DeMontrond Automotive Group.

AIATRUE SANDCASTLE AVENGERS AGE OF CONSTRUCTION

We were involved in many fun events this year especially AIA Sandcastle which we teamed with H4 Architects. We had an amazing turn out with both companies teams! Thank You!

CAPTAIN ENGINEER

CONTRAC-THOR

ARC EYE

TEAL PROJECTS COMPLETED Gary Ferri Superintendent of the Year Corpus Christi Gary Ferri has been with the company for 4 years and is currently completing Smith Middle School for Sinton ISD. He has overcome many obstacles with this project mainly weather delays due to the heavy rains last fall.

DOGGETT HEAVY MACHINERY

“His job title of Superintendent doesn’t even come close to describing the impact Gary has on a typical day. He’s more like a superintendent/ equipment operator/concrete finisher/carpenter with the list continuing with each challenge he successfully completes. He is a remarkable employee who does not hesitate to go above and beyond what is expected of him. He keeps us on track, never complains, and delivers value in everything that he does.”

“Gary and I worked together on my first project with Teal and he taught me so much. He is a true craftsman. Seeing him work with his hands and see the things that he can build is truly amazing. He has so much experience on a range of projects and has some great stories. Gary is an all around great man and Superintendent.”

Completed Projects Doggett Heavy Machinery Dubose Intermediate French Ellison Renovations

HAPPY NOVEMBER ANNIVERSARY TEALIANS!

15 YRS

10 YRS

Joe Garcia, Jim Shaw, Dusty Lacey, Michael Pettus, Taylor Macon, and April Perez are all celebrating anniversaries in November. Joe has been our traveling Superintendent for the last 15 years. (See below for project highlights) Jim Shaw has been our go-to Superintendent for Frost Bank for the past 10 years and has almost completed all Frost Bank projects that we have in our portfolio (See below for project highlights) Dusty Lacey has been with Teal

3 YRS

BRITIAN CHEVROLET

1 YR

We have two new employees in our Houston office Mickey Smith and Mike Woods both Superintendents.

Mickey will be working with our Frost Bank team on a new financial center in Pasadena. Mike is working with our Automotive Division in Beaumont managing the new Kinsel Toyota Facility. If you haven’t met these two superintendents make sure to introduce yourself and welcome them to the team!

Construction for 8 years and is a Superintendent in Corpus Christi working on the KEDT Studios Project. Mike Pettus has been with Teal for 4 years and works in Houston as a Superintendent. He recently completed BARC Adoption Center and is now working on HCC Acres Homes. Taylor Macon has been with Teal for 3 years and is currently working on Turner Chevrolet in Crosby. April Perez is finishing out her first year with Teal Construction and works in the Accounting division. She is a strong asset to our whole team.

BLENCOR FREEZER PLANT

HAZELWOOD DODGE

JOE GARCIA 15 YEARS OF SERVICE PROJECT GALLERY JIM SHAW 10 YEARS WILSON OF SERVICE FIRE PROJECT GALLERY

CY FAIR ISD FROST BANK TRANSPORTATION BG PLACE

HONDA SLIDELL

FROST BANK RIVER OAKS

FROST BANK RIVER OAKS WON A MERIT AWARD WITH ASSOCIATED BUILDERS AND CONTRACTORS EXCELLENCE IN CONSTRUCTION

HAPPY DECEMBER ANNIVERSARY TEALIANS!

9 YRS

2 YRS

Tom Gentry, Michael Hanks, April Patterson, and James Grant all celebrated anniversaries in December. Tom has been with the company for 9 years and is a Project Director in our Corpus Christi office. Tom is currently completing Smith Middle School. Michael Hanks works as a Superintendent in our Special Projects department. He has been with Teal for two years and has recently completed Kia of Silsbee. April Patterson is the office manager in our Corpus Christi office. For the past year she has been assisting the team to ensure daily

1 YR

1 YR

In 2015, Teal Construction hired five new employees We are very lucky with the Tealians that we have and their diverse backgrounds!

TEAL EMPLOYEE YEARS

4 EMPLOYEES 5 EMPLOYEES 3 EMPLOYEES 10 EMPLOYEES 36 EMPLOYEES

tasks get completed.

James Grant is a Superintendent in our Houston office. James has been on multiple executive hangar at Sugar Land Airport. projects in the past year, Thank you Tealians for your commitment to but is completing a new the progress of our company!!!

DUCKS FLY TOGETHER!

A TEAM ISN’T A BUNCH OF PLAYERS OUT TO WIN. A TEAM IS SOMETHING YOU BELONG TO, SOMETHING YOU FEEL, SOMETHING YOU HAVE TO EARN. - COACH BOMBAY

Throughout the past year, Teal started their quarterly training program that has brought both of our offices together to teach and learn about new technologies and trends in our market. Each quarter we teach different lessons in project management, site management, coordination between office and field to ensure that everyone understands our methods and is providing our clients with the excellent service. Our training sessions has helped even our most technologically savvy new techniques to enhance their production and make their job easier.

CORPUS CHRISTI COMPLETED PROJECTS

DOGGETT HEAVY MACHINERY PM: Jason DeVries E: Michael Miller Super: Gary Ferri PC: Morelva Gonzalez Doggett Machinery is a new 13,000 square foot facility serving Corpus Christi. The facility is located on a four acre site which provides the owner with plenty of room to display their equipment. There are three buildings that house a lobby and display area, administration space, warehouse, a three-bay maintenance shop and a 1,200 square foot wash rack. Approximately 61,000 square feet of concrete paving was installed to allow for parking, secured service yard, and equipment sales.

CORPUS CHRISTI CYCLE PLAZA

PM: Jason DeVries E: Michael Miller Super: Jim Threeton PC: Morelva Gonzalez Corpus Christi Cycle Plaza is an interior renovation and expansion project to upgrade the main showroom to brand standards. The existing space was demolished and exterior walls were moved to allow for a larger sales floor. The interior showroom received finish improvements including new floors, millwork, walls, and lighting. New sliding entry doors were provided and the existing stone wainscot and stucco finish was matched. The successful completion of this project allowed for more usable space for our client.

Teal Construction teamed up with Dawson Van Orden Engineers in the Houston Canstruction Competition. The competition included multiple architects, engineers, developers, and general contractors that built structures out of can goods and then later donated the cans to the Houston Food Bank. This was a remarkable event and really was great to be part such an incredible charity. To find out how you can help check out Houston Food Bank’s website www.houstonfoodbank.com. A special thanks to the Teal Employees that participated and helped throughout the planning stages; Michael Losoya, Bill Schultz, Yessenia Pedraza, Ernesto Castro, Mark Baumgard, Taylor Macon, Bill Schultz, and Kelly Richardson!

CANSTRUCTION

BEAUMONT HOUSTON METROPOLITAN HAS ECO PARK II HARRIS HEALTH PAHC NORTH

BRYAN FIAT COTTON GIN FRENCH ELLISON CONVERSE, TX LIEF JOHNSON

PHILPOTT TOYOTA SILSBEE KIA KINSEL TOYOTA

DEMONTROND VOLVO & KIA

TURNER CHEVROLET LITTLE YORK FIRE HCC FELIX FRAGA TRAINING FIELD GALVESTON COUNTY ROAD & EASTERN REGIONAL BRIDGE PARK POOL

BRAZORIA COUNTY CITY OF BEEVILLE CITY HALL GENERATOR BUILDING

GALVESTON

BMW VEHICLE PROCESSING CLASSIC FORD SI GROUP ADMINISTRATION BUILDING FIRST BAPTIST CHURCH OF ANGLETON GREATER MOUNT ZION CHURCH FREEPORT LNG ADMINISTRATION BUILDING

CAMP KARANKAWA DOGGETT HEAVY SMITH MIDDLE SCHOOL MACHINERY BOWDEN FORD

LAREDO

CORPUS CHRISTI

NEESSEN LITHIA DODGE CHEVROLET CC CYCLE PLAZA

SAMES HONDA

COVERING SOUTH TEXAS 2015 PROJECT STARTS & COMPLETIONS

GALVESTON COUNTY ROAD & BRIDGE BUILDING PM: Glenn Jarrett Super: Brad Black PC: Debbie Shelton

E: Dave Ogden

Part of the IKE Recovery, two new pre-engineered metal buildings were constructed on Crystal Beach.

The new buildings allowed for administration, vehicle maintenance, and vehicle storage. The 7,200 SF administration building includes meeting spaces, offices, and a three bay repair and maintenance garage. The second 2,800 SF building is for the county vehicle parking and wash bay. To meet flood regulations over four feet of fill was brought in to increase the finished floor height and a large retaining wall was constructed.

Laydown and storage areas, large quantity of parking, and an access road were installed for the project.

TEXAS BAY AREA CREDIT UNION PM: Mark Baumgard E: Dave Ogden Super: Daryl Gardner PC: Debbie Shelton Texas Bay Area Credit Union Pasadena Branch features Texas Bay Area Credit Union’s new branding. The project includes the demolition of the existing two story credit union and coordination with a local pipeline company to install new utilities across the site. The new building contains offices, lobby, drive thru windows, and auxiliary spaces.

The lobby space displays murals with Houston history. The new image exterior includes stone and horizontal metal panels. This is our second credit union with Texas Bay Area.

CLEAR LAKE SUBARU PM: John LeBlanc & John Shead E: Dave Ogden Super: Wes Chapman & James Grant PC: Connie Enmon The new ground up Subaru facility included a showroom, sales office, and service center. The new service center is customer friendly with the ease of driving right into the waiting area without having to step out into any bad weather.

The 11,130 SF service center has 14 vehicle maintenance stalls, fully air-conditioned and has four detail stations. The showroom can accommodate nine vehicles, customer lounge, sales cubicles and offices, as well as F&I manager spaces. The exterior façade is ACM panel, stone veneer, and glazing.

HARRIS HEALTH CENTRAL PHARMACY PM: Mike Tancill E: DeWayne Lucas Super: Grant Macon PC: Debbie Shelton Formerly a MD Anderson lease space converted into a Pharmacy Central Fill production facility. This building houses partially federal funded robotics for the filling of prescriptions throughout the Harris County hospital districts, clinics and hospitals. Teal prepared the space with a main automation area to include electrical, data and finishes for the robotics as well as an adjoining space for administrative offices, training areas and conference rooms.

TEAL PROJECTS COMPLETED Pat Garrett Employee of the Year Houston For the past 18 years, Pat Garrett has grown with the company starting as a Superintendent and currently a Project Director. Though he has successfully completed multiple projects in all of our markets, Pat runs our Frost Bank projects. This past year Pat and his team completed two ground up Frost Banks as well as multiple misc renovation projects and has started construction on two others. His Frost Bank - Rice Village Financial Center won a Excellence in Construction Merit Award.

“Pat Garrett has complete dedication to the growth of Teal. He is typically turning the lights on as the first one to the office and never minds putting in the extra hours to help a fellow employee or get a project completed.”

FROST BANK BG PLACE

CY-FAIR ISD MAINTENANCE BUILDING

“I can honestly say that I enjoy working with the Teal Team.

Pat Garrett and Jim Shaw, along with the other superintendents, have become true partners and a valuable part of our construction team.”

- Stan Richard, Frost Bank Key Completed Projects Lithia Honda Corpus Christi Art Center Hacienda Ford South Park Lincoln Mercury

HELFMAN DODGE - RIVER OAKS

FROST BANK HARRISBURG PM: Pat Garrett Super: Jim Shaw PC: Connie Enmon

E: Dave Ogden

The Frost-Bank Harrisburg location is one of the main resources for the Frost Bank Houston with all daily transactions being accounted for here.

The original bank building had to be kept open until an adjacent building could be renovated to accommodate the operations of the bank. This was a 1,675 SF ground up construction consisting of lobby, teller work area, office spaces, and a three lane drive area. The exterior primary construction materials included limestone veneer, stucco, aluminum storefront, and Alucobond metal panels.

The interior of the building was finished with carpet tile, ceramic tile, wood veneer ceilings with exposed trusses and limestone and painted walls.

BMW VEHICLE PROCESSING CENTER PM: Glenn Jarrett E: DeWayne Lucas Super: Brad Black & Marcelino Perez PC: Debbie Shelton The BMW Vehicle Processing Center is a design + build project that was done at the Port of Galveston.

The new 35,900 SF building is a vehicle processing center for all of the new inventory and a 10,700 SF body shop and car wash. Both of the buildings are pre-engineered metal buildings with metal panel and split face CMU exterior facades. The vehicle processing center can accommodate over 50 vehicles and has multiple offices, a break room and parts department. The new facility had there first shipment of cars come in January 2016.

CORPUS CHRISTI SUBCONTRACTOR APPRECIATION Morelva Gonzalez Employee of the Year Corpus Christi In 2009, Teal Construction was lucky enough to score Morelva Gonzalez as a new employee in our Corpus Christi office. Morelva’s job title is Project Coordinator, but really she is running an office and keeping everyone in Corpus on their toes. Morelva goes above and beyond to help all of her employees. She is always willing to lend a helping hand no matter what office needs it.

Morelva coordinates all of the projects in Corpus Christi which involves a lot of organization with her project management team. She has an amazing rapport with the subcontractors which in turn builds Teal’s relationship with them. She also plans meetings for the team, events for the subcontractors, and makes sure that anyone that comes into the office feels welcome.

Her management team says that nothing would be done without Morelva’s support and diligence to get tasks completed. She is an overachiever and exactly what we need at Teal Construction.

Morelva’s favorite building is The Paramount Theater in Austin, TX

COTTON GIN RENOVATION EXCELLENCE IN CONSTRUCTION - MERIT WINNER The extensive renovation of an eighty year old facility to provide new offices, gathering spaces, historical landmark, and banquet hall. The project included remediation, installation of new concrete foundations, upgrading the existing structure, interior finishes, exterior facade, and the dismantle and reconfigure of the original 1936 cotton gin. The original building had selective demolition and pieces were salvaged to be reused. There were two lean-to structures that were fully demolished due to structural damage. A new garage was built on the back of the property as well.

6,545 HRS

Teal Total Man Hours = 1,000 HRS

Specialty Contractor Total Man Hours

N BCO TRACT SU

42%

ER LF P FORM SE

S

32,341 HRS

58%

“

Custom Built Wood Value Engineering Savings $308,707 Approximately 17% of original contract.

”

The value engineering savings allowed the Owner to incorporate additional upgrades to the scope of work.

PM: John LeBlanc & John Shead E: Dave Ogden Super: Benny Hopper PC: Connie Enmon

SPECIAL PROJECTS DIVISION Our Special Project Division has continued to make big strides in 2015 picking up new clients and larger projects. The division is head by, Michael Losoya who directs a group of talented professionals. They work with Katy Mills Mall, Coca-Cola Distribution, Drive Time, Carvana, Helfman Auto Group, Severn Trent, FTS International, Tenaris, and many other dedicated clients. In 2015, Special Projects ďŹ nished more work than we have seen in the past division history. The Special Projects group have the abilities to do any project from a simple tenant improvement to ground up facilities. Teal is thankful for the dedication of our Special Projects that are persistent on delivering successful projects.

Chantela Rowland Project Coordinator

Michael Hanks Superintendent

James Crawford Superintendent

Ernesto Castro Superintendent

Bill Schultz Superintendent

Michael Losoya, Director of Special Projects

Employees not pictured: Jenny McCarver - Project Coordinator & Wes Chapman - Superintendent

LITHIA FIAT

TENARIS TRUCK ENTRANCE

HELFMAN FENCE

KIA SILSBEE

2015 GROUNDBREAKING ANGLETON BUSINESS PARK ACRES HOMES, HOUSTON

FELIX FRAGA, HOUSTON SSCI OFFICE BUILDING & WAREHOUSE PM: Jason DeVries E: Michael Miller Super: Robert Klusmeyer PC: Morelva Gonzalez SSCI Office Building & Warehouse is the new construction of a 14,000 square foot preengineered metal building and the addition of 13,255 square foot of paving to the site. The exterior facade had both split face block, brick, and metal panels. The two story building provided the client with more than adequate office space and warehouse area. Creative Furnishing, our Interior Design Firm, facilitated all of the furniture for the new facility.

SAMES HONDA, LAREDO

HOUSTON CLIENT & SUBCONTRACTOR EVENTS

HOLD ‘EM & HIT ‘EM

TEAL & PBI BBQ

HOLD ‘EM & HIT ‘EM

TEAL & PBI BBQ

SI GROUP TOP OFF PARTY

SI GROUP TOP OFF PARTY

TEAL IN THE COMMUNITY Teal’s team participates in multiple industry organizations as well as community service and competition events. Each of our affiliations provide us with an outlet for networking, training, team building, and advancement in our industry. We look forward to each chance that we can participate in their activities and challenge each of our employees to do more with the organizations and our community. Here are some of 2015’s events that we participated in.

ABC - EIC AWARDS

NAIOP - FALL EVENT

ABC - TEXAS LEGISLATIVE DAY

ABC YPC - COMMUNITY GARDEN

NAIOP - FALL LUNCHEON Jennifer King, Director of Marketing, won the 2015 Associated Builders and Contractors Volunteer of the Year. She participates in the Marketing and Young Professionals Committee and currently is in the Leadership Forum. During the last year, Jennifer has helped the Young Professionals orchestrate three community service events including Lettuce Live a community garden project, Cycle Bike Build, and a food drive to benefit Kids Meals!