SDI Standard Diversified Inc

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.

  Standard Diversified Inc. and Subsidiaries Consolidated Statements of Income

(dollars in thousands except share data)

        Three Months Ended Nine Months Ended September 30, 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     Standard Diversified Inc. and Subsidiaries Consolidated Balance Sheets

(dollars in thousands except share data)

  September December 31, 2018 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 andoutstanding shares

- -

Class A common stock, $0.01 par value; authorized shares, 300,000,000; 9,031,641and 8,348,373 issued and outstanding shares at September 30, 2018 and December31, 2017, respectively

90 83

Class B common stock, $0.01 par value; authorized shares, 30,000,000; 7,818,645and 8,041,525 issued and outstanding shares at September 30, 2018 and December31, 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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The Equity Group Inc.Adam Prior, 212-836-9606aprior@equityny.com