Standard Trustco deal makes Roman Corp. holdings leaner

After deciding that it can’t be all things to all analysts, Toronto-based Roman Corp. (TSE) has emerged in 1988 as a much leaner holding company. In 1987, the company’s consolidated earnings before extraordinary items increased to $8.5 million or 87 cents per share from a loss of $161,458 or 2 cents per share. Revenues were also up slightly to $48.7 million in 1987 from $41.8 million in 1986.

In a bid to streamline its key assets which include a 29.3% interest in Denison Mines (TSE) of Toronto and broaden its outlook, Roman Corp. recently acquired a 44.8% interest in Standard Trustco Ltd. from Denison for $71.6 million.

Designed to strengthen Denison’s financial position, the transaction will enable the huge uranium and oil producer to focus on developing its natural resource base, said President Charles Parmelee at Roman Corp.’s annual meeting in Toronto.

“No company can be all things to all people,” he said.

Plagued by price drops and oversupply in its oil, gas and uranium sectors, Denison reported earnings last year of just $27.3 million on revenues of $442 million.

With Roman Corp. vice-president Stephen G. Roman in charge, Denison is current looking for opportunities in the highly competitive precious metals acquisitions field. In an interview with The Northern Miner, Roman wouldn’t say how much has been budgeted for acquisitions, but he is reviewing half a dozen situations in Canada, the United States and abroad.

“We are trying to stick to projects with work already completed and established reserves,” said Roman.

Roman Corp.’s Standard Trustco acquisition comes about two years after a leveraged buyout of the packaging and printing operations of Mardon Packaging International and the creation of Lawson Mardon Group Ltd., one of the world’s largest packaging and printing companies.

Roman Corp. holds a 26% interest in Lawson Mardon which strengthened its balance sheet through an initial public offering of 13.8 million Class A subordinate voting shares for $204 million.

The company doubled its net earnings to $27.7 million or $1.20 per share last year from $14.4 million in 1986.

Roman Corp.’s wholly-owned Strathcona Paper Co. reported a record year with $37.7 million in sales compared with $35.6 million in 1986.

The Roman Corp. issue traded recently on the Toronto Stock Exchange at $12.75 in a 52-week range of $19 and $8.50.