CENTRAL SECURITIES CORPORATION
INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 2015
To
the Stockholders of
Central
Securities Corporation:
Financial data for the quarter ended March 31, 2015 and other pertinent information prepared by management without audit by independent auditors are submitted herewith.
Comparative net assets are as follows:
| Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | ||||||||||
| Net assets | $ | 641,613,033 | $ | 649,760,644 | $ | 649,683,694 | ||||||
| Net assets per share of Common Stock | $ | 26.06 | $ | 26.18 | $ | 26.94 | ||||||
| Shares of Common Stock outstanding | 24,619,118 | 24,819,241 | 24,117,323 | |||||||||
Comparative operating results are as follows:
| Three months ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Net investment income | $ | 732,053 | $ | 511,468 | ||||
| Per share of Common Stock | .03 | * | .02 | * | ||||
| Net realized gain on sale of investments | 35,750,693 | 4,268,848 | ||||||
| Decrease in net unrealized appreciation of investments | (40,290,084 | ) | (1,379,245 | ) | ||||
| Increase (decrease) in net assets resulting from operations | (3,807,338 | ) | 3,401,071 | |||||
* 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 18, 2015, the stockholders elected seven directors and ratified the selection of KPMG LLP as auditors of the Corporation for the year 2015. A stockholder proposal requesting that the Board of Directors consider liquidation of the Corporation was not approved. At the Board of Directors meeting on the same day, L. Price Blackford was elected Lead Independent Director of the Board.
In the quarter ended March 31, 2015, the Corporation repurchased 203,123 shares of its Common Stock at an average price of $21.70 per share. The Corporation may from time to time purchase Common Stock in such amounts and at such prices as the Board of Directors may deem advisable in the best interests of stockholders. Purchases may be made on the NYSE MKT 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
April 22, 2015
| [2] |
PRINCIPAL
PORTFOLIO CHANGES
January
1 to March 31, 2015
(Common Stock unless specified
otherwise)
(unaudited)
| Number of Shares | |||||
| Held March 31, 2015 | |||||
| Purchased | Sold | ||||
| Agilent Technologies, Inc. | 480,000 | — | |||
| Alleghany Corporation | 11,000 | 21,000 | |||
| American Express Company | 40,000 | 40,000 | |||
| Analog Devices, Inc. | 160,000 | 400,000 | |||
| Capital One Financial Corporation | 50,000 | 290,000 | |||
| Citizens Financial Group, Inc. | 50,000 | 50,000 | |||
| Clean Harbors, Inc. | 150,000 | — | |||
| Discovery Communications, Inc. | 50,000 | — | |||
| eBay Inc. | 220,000 | — | |||
| General Electric Company | 50,000 | 200,000 | |||
| GeoMet, Inc. Series A Convertible Redeemable | |||||
| Preferred Stock | 10,749 | (a) | 354,743 | ||
| Intel Corporation | 250,000 | 1,450,000 | |||
| Precision Castparts Corporation | 45,000 | 45,000 | |||
| Rayonier Inc. | 152,700 | 580,000 | |||
| Sonus Networks, Inc. | 2,400,000 | (b) | 600,000 | ||
| Walgreen Boots Alliance, Inc. | 240,000 | — | |||
(a) Received as a dividend.
(b)
Reverse stock split (1-for-5).
TEN LARGEST INVESTMENTS
March
31, 2015
(unaudited)
| Percent
of Net Assets |
Year
First Acquired | |||||||
| Cost | Value | |||||||
| (millions) | ||||||||
| The Plymouth Rock Company, Inc. | $ | 0.9 | $ | 132.5 | 20.7 | % | 1982 | |
| Intel Corporation | 22.9 | 45.3 | 7.1 | 1986 | ||||
| Coherent, Inc | 17.5 | 42.7 | 6.7 | 2007 | ||||
| Analog Devices, Inc. | 3.0 | 25.2 | 3.9 | 1987 | ||||
| The Bank of New York Mellon Corporation | 16.1 | 25.2 | 3.9 | 1993 | ||||
| Capital One Financial Corporation | 16.9 | 22.9 | 3.6 | 2013 | ||||
| Brady Corporation | 6.0 | 22.3 | 3.5 | 1984 | ||||
| Citigroup Inc. | 19.7 | 20.6 | 3.2 | 2013 | ||||
| Motorola Solutions, Inc. | 14.3 | 20.0 | 3.1 | 2000 | ||||
| Rayonier Inc. | 18.9 | 15.6 | 2.4 | 2014 | ||||
| [3] |
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
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/investor
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
New York, NY
| [4] |