CENTRAL SECURITIES CORPORATION
INTERIM REPORT TO STOCKHOLDERS
AS OF SEPTEMBER 30, 2018
To the Stockholders of
Central Securities Corporation:
Financial data for the period ended September 30, 2018 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, 2018 | June 30, 2018 | Dec. 31, 2017 | ||||||||||
| Net assets | $ | 891,072,100 | $ | 845,131,777 | $ | 826,331,789 | ||||||
| Net assets per share of Common Stock | $ | 35.44 | $ | 33.61 | $ | 32.86 | ||||||
| Shares of Common Stock outstanding | 25,146,616 | 25,146,616 | 25,143,616 | |||||||||
Comparative operating results are as follows:
| Nine months ended September 30, | ||||||||
| 2018 | 2017 | |||||||
| Net investment income | $ | 13,541,431 | $ | 6,946,083 | ||||
| Per share of Common Stock | .54 | * | .28 | * | ||||
| Net realized gain on sale of investments | 20,751,765 | 13,849,772 | ||||||
| Increase in net unrealized appreciation of investments | 36,651,299 | 82,495,261 | ||||||
| Increase in net assets resulting from operations | 70,944,495 | 103,291,116 | ||||||
* 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, 2018, the Corporation did not purchase any shares of its Common Stock. 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, Chief Executive Officer | |
630 Fifth Avenue
New York, NY 10111
October 17, 2018
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PRINCIPAL PORTFOLIO CHANGES
July 1 to September 30, 2018
(Common Stock unless specified otherwise)
(unaudited)
| Number of Shares | ||||||
| Held | ||||||
| September 30, | ||||||
| Purchased | Sold | 2018 | ||||
| Alleghany Corporation | 2,000 | 19,000 | ||||
| Aspen Insurance Holdings Ltd. | 200,000 | — | ||||
| Coherent, Inc. | 35,000 | 350,000 | ||||
| Kennedy-Wilson Holdings, Inc. | 250,000 | — | ||||
TEN LARGEST INVESTMENTS
September 30, 2018
(unaudited)
| Percent of | Year First | |||||||||||||||
| Cost | Value | Net Assets | Acquired | |||||||||||||
| (millions) | ||||||||||||||||
| The Plymouth Rock Company, Inc. | $ | 0.7 | $ | 170.5 | 19.1 | % | 1982 | |||||||||
| Coherent, Inc. | 13.5 | 60.3 | 6.8 | 2007 | ||||||||||||
| Hess Corporation | 31.2 | 50.1 | 5.6 | 2017 | ||||||||||||
| Analog Devices, Inc. | 6.2 | 41.6 | 4.7 | 1987 | ||||||||||||
| Intel Corporation | 7.6 | 39.7 | 4.5 | 1986 | ||||||||||||
| Motorola Solutions, Inc. | 14.1 | 39.0 | 4.4 | 2000 | ||||||||||||
| Capital One Financial Corporation | 17.8 | 28.5 | 3.2 | 2013 | ||||||||||||
| Amazon.com, Inc. | 3.8 | 26.0 | 2.9 | 2014 | ||||||||||||
| Rayonier Inc. | 21.1 | 23.7 | 2.7 | 2014 | ||||||||||||
| The Bank of New York Mellon Corporation | 8.4 | 20.4 | 2.3 | 1993 | ||||||||||||
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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
Wilmot H. Kidd IV
C. Carter Walker, Jr., Director Emeritus
OFFICERS
Wilmot H. Kidd, Chief Executive Officer
John C. Hill, 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 505000, Louisville, KY 40233
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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