Standard Diversified Inc., whose holdings include interests in insurance, billboard and chewing tobacco companies, posted higher net sales in the first quarter, but lower net income related to increased taxes.
The Mineola holding company, which moved from Wilmington, Delaware, in January, Monday reported an 11.3 percent year-over-year increase in quarterly net sales to $74.3 million.
The revenue gain was driven by the acquisition of Vapor Shark, a "vape" company in the e-cigarette industry, in the second quarter of 2017 and Interboro Holdings and its subsidiary, Maidstone Insurance Co., in January.
Net income fell to $521,000, or 3 cents per diluted share, from $1.9 million, or 7 cents per diluted share, in the previous year's period.
In the period ended March 31 the company had an income tax expense of $809,000, reversing an income tax benefit of $2.1 million in the previous year.
Chief executive Ian Estus said the company had gained momentum through the quarter "driven through acquisitions, including the purchase of an insurance business with roughly $50 million in assets" and expansion of outdoor advertising operations through acquisitions in the Southeast. Those acquisitions included a $6.9 million deal announced in February for 86 billboard structures and associated advertising contracts in Florida and Georgia and a $10.5 million deal for 83 billboard structures and advertising contracts in Alabama.
Shares of Standard Diversified lost 3.3 percent Monday to close at $10.25 and fell 1.2 percent Tuesday to close at $10.05.