EX-99.1 2 ex99_1.htm EXHIBIT 99.1
Exhibit 99.1


STANDARD DIVERSIFIED INC. REPORTS FINANCIAL RESULTS FOR ITS THIRD QUARTER ENDED SEPTEMBER 30, 2018

NEW YORK, NY, November 9, 2018 – Standard Diversified Inc. (“the “Company”) (NYSE American: SDI) today announced its financial results for the third quarter ended September 30, 2018.  In addition to its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, the Company will also make available an updated Investor Presentation on its corporate website at www.standarddiversified.com.

2018 Third Quarter Highlights
·
Total revenues increased 24.9% to $91.6 million as a result of strong growth at Turning Point Brands, Inc. (NYSE: TPB) and the addition of $7.1 million of earned insurance premiums from Maidstone Insurance Company, which the Company acquired on January 2, 2018
·
Net income attributable to SDI was $1.4 million, or $0.08 per diluted share

About Standard Diversified Inc.
Standard Diversified Inc. is a holding company that owns and operates subsidiaries in a variety of industries, including insurance, other tobacco products and outdoor advertising.  For more information about the Company, please visit the Company’s website at www.standarddiversified.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements address, among other things activities, events or developments that the Company expects, believes or anticipates will or may occur in the future. These forward-looking statements are subject to a number of risks that could cause actual results to differ materially from those contained in the forward-looking statements, including those risks described in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission, as well as the Company’s subsequent Quarterly Reports on Form 10-Q.  Except as required by law, the Company assumes no obligation to update publicly any such forward-looking statements.

Contact Information:
Adam Prior
The Equity Group Inc.
Phone: (212) 836-9606
aprior@equityny.com

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Standard Diversified Inc. and Subsidiaries
Consolidated Statements of Income
(dollars in thousands except share data)

   
Three Months Ended
September 30,
    
Nine Months Ended
September 30,
  
   
2018
    
2017
    
2018
    
2017
  
Revenues:
                        
Net sales
  
$
84,035
    
$
73,352
    
$
240,156
    
$
212,226
  
Insurance premiums earned
    
7,088
      
-
      
21,539
      
-
  
Net investment income
    
309
      
-
      
679
      
-
  
Other income
    
163
      
-
      
557
      
-
  
Total revenues
    
91,595
      
73,352
      
262,931
      
212,226
  
                                 
Operating costs and expenses:
                                
Cost of sales
    
47,742
      
40,386
      
136,147
      
119,522
  
Selling, general and administrative expenses
    
24,492
      
19,606
      
70,237
      
55,355
  
Incurred losses and loss adjustment expenses
    
5,790
      
-
      
17,007
      
-
  
Other operating expenses
    
2,682
      
-
      
5,512
      
-
  
Total operating costs and expenses
    
80,706
      
59,992
      
228,903
      
174,877
  
Operating income
    
10,889
      
13,360
      
34,028
      
37,349
  
                                 
Interest expense
    
4,450
      
4,023
      
12,556
      
13,002
  
Interest and investment income
    
(243
)
    
(157
)
    
(620
)
    
(369
)
Loss on extinguishment of debt
    
-
      
-
      
2,384
      
6,116
  
Net periodic benefit (income) expense, excluding service cost
    
(45
)
    
58
      
176
      
174
  
Income before income taxes
    
6,727
      
9,436
      
19,532
      
18,426
  
Income tax expense
    
1,436
      
3,110
      
4,153
      
3,850
  
Net income
    
5,291
      
6,326
      
15,379
      
14,576
  
Net income attributable to noncontrolling interests
    
3,924
      
3,576
      
9,962
      
5,046
  
Net income attributable to Standard Diversified Inc.
  
$
1,367
    
$
2,750
    
$
5,417
    
$
9,530
  
                                 
                                 
Net income attributable to SDI per Class A and Class B Common Share – Basic
  
$
0.08
    
$
0.17
    
$
0.33
    
$
0.42
  
Net income attributable to SDI per Class A and Class B Common Share – Diluted
  
$
0.08
    
$
0.16
    
$
0.31
    
$
0.41
  
Weighted Average Class A and Class B Common Shares Outstanding – Basic
    
16,677,412
      
16,399,796
      
16,618,823
      
22,853,762
  
Weighted Average Class A and Class B Common Shares Outstanding – Diluted
    
16,741,660
      
16,410,672
      
16,661,809
      
22,880,941
  

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Standard Diversified Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands except share data)

   
September 30,
2018
    
December 31,
2017
  
ASSETS
            
Cash and cash equivalents
  
$
18,520
    
$
18,219
  
Fixed maturities available for sale, at fair value; amortized cost $34,492 in 2018
    
33,908
      
-
  
Equity securities, at fair value; cost: $753 in 2018
    
804
      
-
  
Trade accounts receivable, net of allowances of $44 in 2018 and $17 in 2017
    
6,808
      
3,249
  
Premiums receivable
    
6,245
      
-
  
Inventories
    
89,433
      
63,296
  
Other current assets
    
14,998
      
10,851
  
Property, plant and equipment, net
    
28,068
      
9,172
  
Deferred income taxes
    
-
      
450
  
Deferred financing costs, net
    
922
      
630
  
Intangible assets, net
    
38,206
      
26,436
  
Deferred policy acquisition costs
    
2,384
      
-
  
Goodwill
    
147,464
      
134,620
  
Master Settlement Agreement (MSA) escrow deposits
    
29,926
      
30,826
  
Pension asset
    
-
      
396
  
Other assets
    
2,877
      
569
  
Total assets
  
$
420,563
    
$
298,714
  
                 
LIABILITIES AND EQUITY
                
Reserves for losses and loss adjustment expenses
  
$
24,741
    
$
-
  
Unearned premiums
    
13,160
      
-
  
Advance premiums collected
    
519
      
-
  
Accounts payable
    
9,943
      
3,686
  
Accrued liabilities
    
18,336
      
20,014
  
Current portion of long-term debt
    
9,299
      
7,850
  
Revolving credit facility
    
30,000
      
8,000
  
Notes payable and long-term debt
    
210,427
      
186,190
  
Deferred income taxes
    
2,598
      
-
  
Postretirement benefits
    
3,916
      
3,962
  
Asset retirement obligations
    
2,028
      
-
  
Other long-term liabilities
    
1,959
      
571
  
Total liabilities
    
326,926
      
230,273
  
                 
Commitments and contingencies
                
                 
Equity:
                
Preferred stock, $0.01 par value; authorized shares 50,000,000; -0- issued and outstanding shares
    
-
      
-
  
Class A common stock, $0.01 par value; authorized shares, 300,000,000; 9,031,641 and 8,348,373 issued and outstanding shares at September 30, 2018 and December 31, 2017, respectively
    
90
      
83
  
Class B common stock, $0.01 par value; authorized shares, 30,000,000; 7,818,645 and 8,041,525 issued and outstanding shares at September 30, 2018 and December 31, 2017, respectively; convertible into Class A shares on a one-for-one basis
    
78
      
81
  
Additional paid-in capital
    
79,338
      
70,813
  
Accumulated other comprehensive loss
    
(2,503
)
    
(1,558
)
Accumulated deficit
    
(21,577
)
    
(26,982
)
Total stockholders' equity
    
55,426
      
42,437
  
Noncontrolling interests
    
38,211
      
26,004
  
Total equity
    
93,637
      
68,441
  
Total liabilities and equity
  
$
420,563
    
$
298,714
  



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