CENTRAL SECURITIES CORPORATION
----------
INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 1996
<PAGE>
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 1996 and other pertinent
information prepared by management without audit by independent auditors are
submitted herewith.
Comparative market values of net assets are as follows:
<TABLE><CAPTION>
Mar. 31, Dec. 31, Mar. 31,
1996 1995 1995
------------ ------------ ------------
<S> <C> <C> <C>
Net assets.............................. $311,059,260 $292,547,559 $244,868,724
Convertible Preference Stock at
liquidation preference................ (9,455,700) (9,488,350) (9,657,675)
------------ ------------ ------------
Net assets applicable to Common Stock... $301,603,560 $283,059,209 $235,211,049
------------ ------------ ------------
------------ ------------ ------------
Net asset coverage per share of
Convertible Preference Stock.......... $ 822.41 $ 770.81 $ 633.87
Net assets per share of Common Stock.... 23.16 21.74 19.08
Pro forma net assets per share,
reflecting conversion of the
Convertible Preference Stock.......... 21.90 20.60 18.18
Shares of Convertible Preference
Stock outstanding................. 378,228 379,534 386,307
Shares of Common Stock
outstanding....................... 13,022,459 13,018,389 12,328,305
</TABLE>
Comparative figures of income are as follows:
<TABLE><CAPTION>
Three months ended March
31,
---------------------------
<S> <C> <C>
1996 1995
----------- -----------
Net investment income................................. $ 1,303,192 $ 1,313,948
Number of times Preferred dividend earned......... 6.9 6.8
Per share of Common Stock......................... .09* .09*
Net realized gain on sale of investments.............. 3,209,834 9,139,527
Increase in net unrealized appreciation
of investments...................................... 14,188,522 7,969,847
Increase in net assets resulting from operations...... 18,701,548 18,423,322
</TABLE>
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* Per-share data are based on the average number of Common shares outstanding
during the three-month period and are after recognition of the dividend
requirement on the Convertible Preference Stock.
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<PAGE>
PRINCIPAL PORTFOLIO CHANGES
January 1 to March 31, 1996
(Common Stock unless specified otherwise)
<TABLE><CAPTION>
Number of Shares
----------------------------------
<S> <C> <C> <C>
Held
March 31,
Purchased Sold 1996
--------- ------ ---------
American Management Systems, Inc. ................. 150,000(a) 10,000 440,000
Analog Devices, Inc. .............................. 205,000(a) 45,000 570,000
Church & Dwight Co., Inc. ......................... 310,000 360,000(b)
Cliffs Drilling Company............................ 75,757(c) 75,757
IXC Communications, Inc. 10% Cum. Pfd. ............ 93(d) 93
Measurex Corporation............................... 15,000 280,000
Petroleum Geo-Services A/S ADR..................... 100,000 100,000
Provident Companies, Inc. ......................... 22,700 122,700
The Reynolds and Reynolds Company
Class A.......................................... 50,000 400,000
Vesta Insurance Group, Inc. ....................... 56,300(a) 168,900
</TABLE>
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(a) Stock split.
(b) Includes shares listed under "Miscellaneous" in the Statement of
Investments at 12/31/95.
(c) Received on conversion of 40,000 shares of Conv. Exchg. Pfd. Stock.
(d) Received from Grumman Hill Investments, L.P.
------------
During the first three months of 1996 the Corporation did not repurchase any
of its Common or Preference Stock. However, it may from time to time purchase
Common or Preference Stock in such amounts and at such prices as the Board of
Directors may deem advisable in the best interests of stockholders.
Stockholders' inquiries are welcome.
CENTRAL SECURITIES CORPORATION
WILMOT H. KIDD, President
375 Park Avenue
New York, N.Y. 10152
April 24, 1996
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<PAGE>
BOARD OF DIRECTORS
DONALD G. CALDER DUDLEY D. JOHNSON
Partner President
G. L. Ohrstrom & Co. Young & Franklin Inc.
New York, N. Y. Liverpool, N. Y.
JAY R. INGLIS WILMOT H. KIDD
Executive Vice President
President
Holt Corporation
New York, N. Y.
C. CARTER WALKER, JR.
Private Investor
GARDINER S. ROBINSON
Director Emeritus
OFFICERS
WILMOT H. KIDD, President
CHARLES N. EDGERTON, Vice President and Treasurer
KAREN E. RILEY, Secretary
OFFICE
375 Park Avenue, New York, N. Y. 10152
CUSTODIAN
The Chase Manhattan Bank, N.A.
770 Broadway, New York, N. Y. 10003
TRANSFER AGENT AND REGISTRAR
First Chicago Trust Company of New York
P. O. Box 2500, Jersey City, N. J. 07303-2500
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
345 Park Avenue, New York, N. Y. 10154
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