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CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 1999
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<PAGE>
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 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>
Mar. 31, 1999 Dec. 31, 1998 Mar. 31, 1998
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<S> <C> <C> <C>
Net assets ................................. $ 479,606,205 $ 476,463,575 $ 478,738,713
Convertible Preference Stock at liquidation
preference .............................. (8,980,700) (8,986,125) (9,039,575)
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Net assets applicable to Common Stock ...... $ 470,625,505 $ 467,477,450 $ 469,699,138
============= ============= =============
Net asset coverage per share of Convertible
Preference Stock ........................ $ 1,335.10 $ 1,325.55 $ 1,324.01
Net assets per share of Common Stock ....... 31.64 31.43 33.10
Pro forma net assets per share, reflecting
conversion of the Convertible Preference
Stock ................................... 29.63 29.44 31.02
Shares of Convertible Preference Stock
outstanding ....................... 359,228 359,445 361,583
Shares of Common Stock outstanding ... 14,873,532 14,872,742 14,191,918
</TABLE>
Comparative figures of income are as follows:
Three months ended March 31,
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1999 1998
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Net investment income ............................. $1,424,929 $ 1,304,034
Number of times Preferred dividend earned ..... 7.9 7.2
Per share of Common Stock ..................... .08* .08*
Net realized gain on sale of investments .......... 9,247,292 11,039,373
Increase (decrease) in net unrealized
appreciation of investments ..................... (7,349,768) 32,153,070
Increase in net assets resulting from operations .. 3,322,453 44,496,477
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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, 1999
(Common Stock unless specified otherwise)
Number of Shares
---------------------------------
Held
March 31,
Purchased Sold 1999
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Allmerica Financial Corporation ............. 20,000 70,000
Analog Devices, Inc. ........................ 20,000 720,000
Arrow Electronics, Inc. ..................... 100,000 100,000
The Bank of New York Company, Inc. .......... 80,000 920,000
Church & Dwight Co., Inc. ................... 41,100 325,000
First Union Corporation ..................... 20,000 280,000
Intel Corporation ........................... 10,000 410,000
Kerr-McGee Corporation ...................... 20,000 70,000
MidAmerican Energy Holdings Co.* ............ 100,000 300,000
Morrison Knudsen Corporation ................ 100,000 700,000
Mutual Risk Management Ltd. ................. 26,666 240,000
Nextel Communications, Inc. Class A ......... 60,000 240,000
Omnicare, Inc. .............................. 100,000 100,000
Peerless Systems Corporation ................ 5,000 395,000
Petroleum GeoServices ASA Spon-ADR .......... 100,000 100,000
The Reynolds and Reynolds Company Class A ... 45,000 555,000
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* Formerly known as CalEnergy Company, Inc.
The annual meeting of stockholders of the Corporation was held on March 10,
1999 with 92% and 96% of Common and Preference shares, respectively, being
represented. At the meeting the Board of Directors was reelected and the
selection of KPMG LLP as auditors of the Corporation for the year 1999 was
ratified. Detailed information will be published in the June 30, 1999
Semi-Annual Report.
During the first three months of 1999 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, NY 10152
April 22, 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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