Return to Virginia Business - May 2003

2003 Fantastic 50:
Highest Revenue Growth: Tesoro Corp.

by Paula C. Squires
Virginia Business
May 2003

A 13-week deadline can be a tight turnaround for most general contractors. Throw in a project that needs historic renovation and lead and asbestos removal and some companies would say no thanks.

Tesoro Corp. of Virginia Beach thrives on such fast-track jobs and won the bid of transforming three old houses into 6,500 square feet of office space for a new admiral in Norfolk. In a frenzy of activity, workers gutted the homes’ electrical and mechanical systems, removed the hazardous materials and refurbished an historic lobby. Thirteen weeks later, “The admiral was sitting in his office with his furniture,” says Dennis F. Gilbert, Tesoro’s CEO.

Creating a skilled team with the ability to execute government jobs quickly has been one of the key strategies behind Tesoro’s rapid growth. “If you provide an environment where a team can come together, they can do amazing stuff,” says Gilbert. Since founding the company six years ago, the former government construction engineer has parlayed his knowledge of the market into jobs for the U. S. Navy, Coast Guard and Army. Currently, the company has a $6.4 million renovation job at the Norfolk Naval Station, recycling a 1940s warehouse into a modern operations center for a newly created Homeland Security Command. “We’ve done other projects with them,” says Lt. Domingo Rivera, the assistant resident officer in charge of the construction. “They take care of the customer’s needs, and they get things done.”

Knowing the market and the intricacies of government contracting has helped boost Tesoro’s revenues. They have risen steadily from $500,000 in 1998 to $21.2 million in 2001 — an increase of 4,140 percent, the highest among firms in the Fantastic 50. Growth was most dramatic between 2000 and 2001 when Tesoro bumped its employee roster from 100 to 120 to accommodate a huge surge in business — from $7 million to more than $20 million. After three years in the business, Gilbert says Tesoro had established a reputation for responsiveness and completing jobs early. “Continued success brought us more work.”

Before starting the firm, Gilbert worked as a supervisory engineer and senior construction manager for the Atlantic Division of the U.S. Naval Facilities Engineering Command for 10 years, where he was responsible for the contracting of millions of dollars in construction projects in Norfolk, Virginia Beach and Rota Air Station in Spain. Before joining the government, he worked on marine projects in Texas, including the construction of offshore oil drilling platforms. By 1997 he was 46, had 24 years of experience in the construction industry and wanted a change. So, he resigned his government job to start his own business — a risky move that took every penny in his retirement fund. By combining his lifetime savings with a loan from SunTrust Bank, Gilbert amassed just over $100,000, enough to capitalize the business for a year. “It was scary as hell,” he recalls. “I started in my dining room with two phone lines, one computer and a fax machine.” He credits his wife of 28 years, Robin, for letting him take the risk at a time when the couple had three children preparing to enter college. “In the early days, it was her job that kept our family insured and helped support us financially.”

Unlike some founders who like to see companies bear the family name, Gilbert looked to his Hispanic heritage — he grew up in the Panama Canal Zone and speaks fluent Spanish — and came up with Tesoro, the Spanish word for “treasure.” It seemed appropriate, since it took all his earthly treasure to start the company.

Since the company has relied so heavily on government contracts, Gilbert wonders what impact war with Iraq will have on his business. “If the government needs facilities quickly to support the war effort, that might increase our business,” he notes. However, a negative impact might be that funds for routine facility work will be diverted to the war. At any rate, the push is on to find more private clients. The company already has one fan in Bill Bissell, a Newport News architect who worked with Tesoro when it renovated a lecture auditorium at the College of William and Mary. What most impressed Bissell was that even the subcontractors showed up on time. “There’s just that small window of time, between June and August when the students vacate, that work can get done. They meet quick demands with quick responses.”

Return to Virginia Business - May 2003