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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF SEPTEMBER 30, 1999
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<PAGE>
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended September 30, 1999 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>
Sept. 30, 1999 June 30, 1999 Dec. 31, 1998
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<S> <C> <C> <C>
Net assets ................................. $500,498,395 $528,821,518 $476,463,575
Convertible Preference Stock at liquidation
preference .............................. * (8,914,900) (8,986,125)
------------ ------------ ------------
Net assets applicable to Common Stock ...... $500,498,395 $519,906,618 $467,477,450
============ ============ ============
Net asset coverage per share of Convertible
Preference Stock ........................ * $ 1,482.97 $ 1,325.55
Net assets per share of Common Stock ....... $ 31.30 34.98 31.43
Pro forma net assets per share, reflecting
conversion of the Convertible Preference
Stock ................................... 31.30 32.72 29.44
Shares of Convertible Preference Stock
outstanding ....................... * 356,596 359,445
Shares of Common Stock outstanding ... 15,991,310 14,860,933 14,872,742
</TABLE>
Comparative figures of income are as follows:
<TABLE>
<CAPTION>
Nine months ended September 30,
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1999 1998
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<S> <C> <C>
Net investment income ..................................... $ 3,946,813 $ 4,019,830
Number of times Preferred dividend earned ............. 7.3 7.4
Per share of Common Stock ............................. .23** .25**
Net realized gain on sale of investments .................. 31,582,633 20,569,234
Decrease in net unrealized appreciation of investments .... (3,185,175) (55,097,640)
Increase (decrease) in net assets resulting from operations 32,344,271 (30,508,576)
</TABLE>
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* On August 1, 1999 the Corporation redeemed the remaining shares of the $2.00
Series D Convertible Preference Stock.
** Per-share data are based on the average number of Common shares outstanding
during the nine-month period and are after recognition of the dividend
requirement on the Convertible Preference Stock.
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<TABLE>
<CAPTION>
PRINCIPAL PORTFOLIO CHANGES*
January 1 to September 30, 1999
(Common Stock unless specified otherwise)
Number of Shares
--------------------------------------------
Held
September 30,
Purchased Sold 1999
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<S> <C> <C> <C>
Analog Devices, Inc. ................................ 20,000 700,000
Arrow Electronics, Inc. ............................. 50,000 450,000
The Bank of New York Company, Inc. .................. 200,000 700,000
Brady Corporation ................................... 30,000 570,000
Church & Dwight Co., Inc. ........................... 300,000(a) 600,000
Cincinnati Bell Inc. ................................ 200,000 350,000
Conoco Inc. Class A ................................. 100,000 100,000
Convergys Corporation ............................... 280,000 680,000
The DII Group Incorporated .......................... 100,000 500,000
Electronic Data Systems Corporation ................. 100,000 --
Household International, Inc. ....................... 20,000 430,000
Intel Corporation ................................... 40,000 780,000
Internet SportStations, Inc. ........................ 100,000 100,000
Nextel Communications, Inc. Class A ................. 60,000 150,000
UnumProvident Corporation ........................... 200,000(b) 200,000
Vesta Insurance Group, Inc. ......................... 100,000 --
</TABLE>
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* Excludes "Miscellaneous -- Other investments."
(a)Stock split.
(b)Of which 160,600 were received in exchange for 220,000 shares of Provident
Companies, Inc.
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In the quarter ended September 30, 1999 the Corporation repurchased
154,417 shares of its Common Stock at an average price per share of $26.77.
These shares were purchased on the American Stock Exchange or in private
transactions with stockholders. 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.
Stockholders' inquiries are welcome.
CENTRAL SECURITIES CORPORATION
WILMOT H. KIDD, President
375 Park Avenue
New York, NY 10152
October 26, 1999
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<PAGE>
BOARD OF DIRECTORS
DONALD G. CALDER DUDLEY D. JOHNSON
President President
G. L. Ohrstrom & Co., Inc. Young & Franklin Inc.
New York, NY Liverpool, NY
JAY R. INGLIS WILMOT H. KIDD
Executive Vice President President
Holt Corporation
New York, NY
C. CARTER WALKER, JR.
Washington, CT
OFFICERS
WILMOT H. KIDD, President
CHARLES N. EDGERTON, Vice President and Treasurer
KAREN E. RILEY, Secretary
OFFICE
375 Park Avenue, New York, NY 10152
212-688-3011
www.centralsecurities.com
CUSTODIAN
UMB Bank, N.A.
P.O. Box 419226, Kansas City, MO 64141-6226
TRANSFER AGENT AND REGISTRAR
EquiServe, First Chicago Trust Division
P. O. Box 2500, Jersey City, NJ 07303-2500
INDEPENDENT AUDITORS
KPMG LLP
345 Park Avenue, New York, NY 10154
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