CENTRAL SECURITIES CORPORATION
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INTERIM REPORT TO STOCKHOLDERS
AS OF MARCH 31, 2000
<PAGE>
TO THE STOCKHOLDERS OF
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended March 31, 2000 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, 2000 Dec.31, 1999 Mar.31, 1999
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<S> <C> <C> <C>
Net assets .................................... $715,779,188 $590,655,679 $479,606,205
Convertible Preference Stock at liquidation
preference ...... .......................... * * (8,980,700)
------------ ------------ ------------
Net assets applicable to Common Stock ......... $715,779,188 $590,655,679 $470,625,505
============ ============ ============
Net asset coverage per share of Convertible
Preference Stock ........................... $ * $ * $ 1,335.10
Net assets per share of Common Stock. ......... 42.48 35.05 31.64
Pro forma net assets per share, reflecting
conversion of the Convertible Preference
Stock ...................................... * * 29.63
Shares of Convertible Preference Stock
outstanding .......................... * * 359,228
Shares of Common Stock outstanding ...... 16,850,737 16,850,745 14,873,532
</TABLE>
Comparative figures of income are as follows:
Three months ended March 31,
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2000 1999
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Net investment income ..................... $ 1,413,174 $ 1,424,929
Number of times Preferred
dividend earned ..................... * 7.9
Per share of Common Stock ............. .08** .08**
Net realized gain on sale
of investments .......................... 37,424,118 9,247,292
Increase (decrease) in net unrealized
appreciation of investments ............. 86,286,458 (7,349,768)
Increase in net assets resulting
from operations ......................... 125,123,750 3,322,453
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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 three-month period and in 1999 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, 2000
(Common Stock unless specified otherwise)
Number of Shares
---------------------------------------
Held
March 31,
Purchased Sold 2000
-------------- -------- --------------
Analog Devices, Inc. .................. 480,000(a) 150,000(b) 930,000
Broadwing Inc. ....................... 96,090(c) 884,217
The DII Group Incorporated ............ 30,000 470,000
Fort James Corporation ................ 100,000 100,000
Intel Corporation ..................... 60,000 700,000
JLG Industries, Inc. .................. 200,000 200,000
MGI Pharma, Inc. ..................... 70,000 80,000
MidAmerican Energy Holdings Company ... 300,000(d) --
Nextel Communications, Inc. Class A .. 10,000 140,000
Novell, Inc. .......................... 100,000 100,000
Omnicare, Inc. ........................ 100,000 --
Petroleum Geo-Services ASA Spon ADR ... 100,000 --
PharmChem Laboratories, Inc. ......... 18,347 --
Unisys Corporation .................... 800,000 900,000
UNUMProvident Corporation ............. 100,000 330,000
Watkins-Johnson Company ............... 500,000(d) --
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* Excludes stocks listed under "Miscellaneous--Other Investments" at
12/31/99.
(a) Stock split.
(b) 120,000 of which were pre-split.
(c) Received on conversion of 10,743 shares of Broadwing Inc. 71/4% Ser. A Conv.
Pfd. Stock.
(d) Merger.
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The annual meeting of stockholders of the Corporation was held on March 8,
2000 with 93% of Common shares 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 2000 was ratified. Detailed information will be
published in the June 30, 2000 Semi-Annual Report.
In the quarter ended March 31, 2000 the Corporation repurchased 8 shares
of its Common Stock at $30.13 per share. These shares were purchased in a
private transaction with a stockholder. 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
April 28, 2000
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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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