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

[2]
 

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 

 

[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
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

[4]