CENTRAL SECURITIES CORPORATION
INTERIM REPORT TO STOCKHOLDERS
AS OF SEPTEMBER 30, 2016
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended September 30, 2016 prepared by management without audit by our independent registered public accounting firm and other pertinent information are submitted herewith.
Comparative net assets are as follows:
Sept. 30, 2016 | June 30, 2016 | Dec. 31, 2015 | ||||||||||
Net assets | $ | 640,022,719 | $ | 596,106,152 | $ | 582,870,527 | ||||||
Net assets per share of Common Stock | $ | 26.13 | $ | 24.32 | $ | 23.53 | ||||||
Shares of Common Stock outstanding | 24,498,151 | 24,506,651 | 24,770,073 |
Comparative operating results are as follows:
Nine months ended September 30, | ||||||||
2016 | 2015 | |||||||
Net investment income | $ | 4,642,431 | $ | 3,746,422 | ||||
Per share of Common Stock | .19 | * | .15 | * | ||||
Net realized gain on sale of investments | 14,785,997 | 43,034,547 | ||||||
Increase (decrease) in net unrealized appreciation of investments | 47,655,206 | (92,715,258 | ) | |||||
Increase (decrease) in net assets resulting from operations | 67,083,634 | (45,934,289 | ) |
* Per-share data are based on the average number of Common shares outstanding during the nine-month period.
During the nine months ended September 30, 2016, the Corporation purchased 274,922 shares of its Common Stock at an average price of $18.49 per share. The Corporation may from time to time purchase its Common Stock in such amounts and at such prices as the Board of Directors deems advisable in the best interests of stockholders. Purchases may be made in the open market or in private transactions directly with stockholders.
Stockholders’ inquiries are welcome.
Central
Securities Corporation Wilmot H. Kidd, President |
630 Fifth Avenue
New York, NY 10111
October 19, 2016
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PRINCIPAL PORTFOLIO CHANGES
July 1 to September 30, 2016
(Common Stock unless specified otherwise)
(unaudited)
Number of Shares | ||||||||||
Purchased | Sold | Held September 30, 2016 | ||||||||
Analog Devices, Inc. | 50,000 | 450,000 | ||||||||
The Bank of New York Mellon Corporation | 200,000 | 400,000 | ||||||||
Brady Corporation | 100,000 | 500,000 | ||||||||
California Resources Corporation | 1,170 | — | ||||||||
Coherent, Inc. | 25,000 | 425,000 | ||||||||
Intel Corporation | 110,000 | 880,000 | ||||||||
JPMorgan Chase & Co. | 30,000 | 200,000 | ||||||||
Liberty Global plc Class C | 20,000 | 200,000 | ||||||||
Liberty Global plc LiLAC Class C | 70,000 | 170,000 | ||||||||
Texas Instruments Inc. | 20,000 | — | ||||||||
Wells Fargo & Company | 200,000 | 200,000 |
TEN LARGEST INVESTMENTS
September 30, 2016
(unaudited)
Cost | Value | Percent of Net Assets | Year First Acquired | |||||||||||||
(millions) | ||||||||||||||||
The Plymouth Rock Company, Inc. | $ | 0.7 | $ | 119.4 | 18.7 | % | 1982 | |||||||||
Coherent, Inc. | 10.7 | 47.0 | 7.3 | 2007 | ||||||||||||
Intel Corporation | 8.4 | 33.2 | 5.2 | 1986 | ||||||||||||
Analog Devices, Inc. | 6.2 | 29.0 | 4.5 | 1987 | ||||||||||||
Motorola Solutions, Inc. | 14.1 | 22.9 | 3.6 | 2000 | ||||||||||||
Capital One Financial Corporation | 16.9 | 20.8 | 3.3 | 2013 | ||||||||||||
Medtronic plc | 16.2 | 19.0 | 3.0 | 2009 | ||||||||||||
Citigroup Inc. | 19.7 | 18.9 | 3.0 | 2013 | ||||||||||||
Rayonier Inc. | 21.1 | 18.6 | 2.9 | 2014 | ||||||||||||
Brady Corporation | 1.0 | 17.3 | 2.7 | 1984 |
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BOARD OF DIRECTORS
Wilmot H. Kidd, Chairman
L. Price Blackford, Lead Independent Director
Simms C. Browning
Donald G. Calder
David C. Colander
Jay R. Inglis
C. Carter Walker, Jr.
OFFICERS
Wilmot H. Kidd, President
John C. Hill, Vice President
Marlene A. Krumholz, Vice President and Secretary
Andrew J. O’Neill, Vice President
Lawrence P. Vogel, Vice President and Treasurer
OFFICE
630 Fifth Avenue
New York, NY 10111
212-698-2020
866-593-2507 (toll free)
www.centralsecurities.com
TRANSFER AGENT AND REGISTRAR
Computershare Trust Company, N.A.
P. O. Box 30170, College Station, TX 77842-3170
800-756-8200
www.computershare.com
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
New York, NY
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