CENTRAL SECURITIES CORPORATION
INTERIM REPORT TO STOCKHOLDERS
MARCH 31, 2018
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 2018 and other pertinent information prepared by management without audit by independent auditors are submitted herewith.
Comparative net assets are as follows:
| Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | ||||||||||
| Net assets | $ | 819,741,488 | $ | 826,331,789 | $ | 725,517,540 | ||||||
| Net assets per share of Common Stock | $ | 32.60 | $ | 32.86 | $ | 29.22 | ||||||
| Shares of Common Stock outstanding | 25,146,616 | 25,143,616 | 24,826,518 | |||||||||
Comparative operating results are as follows:
| Three months ended March 31, | |||||||
| 2018 | 2017 | ||||||
| Net investment income | $ | 6,165,409 | $ | 3,005,018 | |||
| Per share of Common Stock | .25 | * | .12 | * | |||
| Net realized gain on sale of investments | 14,276,708 | 9,667,451 | |||||
| Increase (decrease) in net unrealized appreciation of investments | (27,114,888 | ) | 39,426,501 | ||||
| Increase (decrease) in net assets resulting from operations | (6,672,771 | ) | 52,098,970 | ||||
* Per-share data are based on the average number of Common shares outstanding during the three-month period.
We are pleased to report that at the Corporation’s annual meeting on March 21, 2018, the stockholders elected seven directors and ratified the selection of KPMG LLP as auditors of the Corporation for the year 2018. Following the annual meeting, the Board of Directors elected John C. Hill, President and Wilmot H. Kidd, Chairman and Chief Executive Officer of the Corporation. In addition, the Board of Directors accorded C. Carter Walker Jr. the honorary position of Director Emeritus. Mr. Walker had served as a director of the Corporation for 44 years and chose not to stand for election this year.
In the quarter ended March 31, 2018, the Corporation did not repurchase any shares of its Common Stock. The Corporation may from time to time purchase 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
April 18, 2018
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PRINCIPAL PORTFOLIO CHANGES
January 1 to March 31, 2018
(Common Stock unless specified otherwise)
(unaudited)
| Number of Shares | ||||||
| Purchased | Sold |
Held March 31, 2018 | ||||
| Alphabet Inc. Class A | 2,000 | 12,000 | ||||
| Aspen Insurance Holdings Ltd. | 200,000 | 200,000 | ||||
| Cable One, Inc. | 17,000 | — | ||||
| Coherent, Inc. | 25,400 | 315,000 | ||||
| Encore Capital Group, Inc. | 100,000 | — | ||||
| General Electric Company | 193,000 | 500,000 | ||||
| Hess Corporation | 140,000 | 700,000 | ||||
| Kennedy-Wilson Holdings, Inc. | 140,000 | 250,000 | ||||
| Ribbon Communications Inc. | 171,600 | 1,387,100 | ||||
| Roper Technologies, Inc. | 5,000 | 65,000 | ||||
| Tiffany & Co. | 20,000 | 80,000 | ||||
| Wells Fargo & Company | 50,000 | 270,000 | ||||
TEN LARGEST INVESTMENTS
March 31, 2018
(unaudited)
| Cost | Value | Percent of Net Assets | Year First Acquired | |||||||||||||
| (millions) | ||||||||||||||||
| The Plymouth Rock Company, Inc. | $ | 0.7 | $ | 149.2 | 18.2 | % | 1982 | |||||||||
| Coherent, Inc. | 7.7 | 59.0 | 7.2 | 2007 | ||||||||||||
| Intel Corporation | 7.6 | 43.7 | 5.3 | 1986 | ||||||||||||
| Analog Devices, Inc. | 6.2 | 41.0 | 5.0 | 1987 | ||||||||||||
| Hess Corporation | 31.2 | 35.4 | 4.3 | 2017 | ||||||||||||
| Motorola Solutions, Inc. | 14.1 | 31.6 | 3.9 | 2000 | ||||||||||||
| Capital One Financial Corporation | 16.9 | 27.8 | 3.4 | 2013 | ||||||||||||
| Rayonier Inc. | 21.1 | 24.6 | 3.0 | 2014 | ||||||||||||
| The Bank of New York Mellon Corporation | 8.4 | 20.6 | 2.5 | 1993 | ||||||||||||
| Medtronic plc | 18.4 | 20.1 | 2.4 | 2009 | ||||||||||||
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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/investor
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
New York, NY
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