[TRIDAN CORP. LETTERHEAD]
December 10, 1998
Dear Shareholder:
Enclosed is the semi-annual, unaudited Financial Report of the Company for
the periods ended October 31, 1998 and 1997.
The net asset value per share at October 31, 1998 was $12.66 compared with
$12.51 at October 31, 1997. Net investment income was 27 cents per share for the
six-month period ended October 31, 1998 compared with 29 cents during the
six-month period ended October 31, 1997.
With best wishes for the Holiday Season.
Sincerely,
TRIDAN CORP
/s/ Peter Goodman, President
----------------------------
Peter Goodman, President
<PAGE>
TRIDAN CORP.
FINANCIAL REPORT
(Unaudited)
OCTOBER 31, 1998 AND 1997
<PAGE>
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
P a g e
- --------------------------------------------------------------------------------
Financial Statements
Statements of Assets and Liabilities 1
Schedules of Investments in Municipal Obligations 2
Statements of Operations 6
Statements of Changes in Net Assets 7
Notes to Financial Statements 8
Supplementary Information 11
<PAGE>
TRIDAN CORP.
STATEMENTS OF ASSETS AND LIABILITIES
(Unaudited)
OCTOBER 31, 1998 AND 1997
ASSETS 1998 1997
----------- -----------
Investments in municipal obligations,
at market value (amortized cost of
$36,231,776 and $36,025,029, respectively) $38,625,784 $37,893,967
Cash and cash equivalents 516,760 847,836
Accrued interest receivable 640,915 604,038
Prepaid expenses 2,012 2,012
----------- -----------
39,785,471 39,347,853
LIABILITIES
Accrued liabilities 53,275 60,217
Common stock redemption payable -- 5,900
----------- -----------
53,275 66,117
----------- -----------
Contingency (Note 6)
NET ASSETS
Net assets (equivalent to $12.66 and $12.51
per share based on 3,138,061.6805 and
3,140,244.982 shares of common stock
outstanding, respectively (Note 4) $39,732,196 $39,281,736
=========== ===========
See accompanying notes.
- 1 -
<PAGE>
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
(Unaudited)
OCTOBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
1998 1997
----------------------------------- ------------------------------------
Principal Amortized Market Principal Amortized Market
Amount Cost Value Amount Cost Value
---------- ---------- --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
City of New York
General Purpose Unlimited Tax
6.75% due February 1, 2009 $1,000,000 $1,156,252 $1,188,930 $ -- $ -- $ --
City of New York
Ref. Unlimited Tax
6-3/4% due August 15, 2003 500,000 543,457 563,490 500,000 551,374 560,220
5-7/8% due August 1, 2003 2,000,000 2,098,014 2,156,980 2,000,000 2,116,025 2,123,620
5.750% due August 1, 2002 1,000,000 992,724 1,063,400 1,000,000 991,041 1,051,030
City of Oswego, N.Y. Public
Improvement:
AMBAC Insured
6.40% due May 15, 2002 500,000 500,790 542,675 500,000 500,984 545,555
6.40% due May 15, 2001 -- -- -- 500,000 502,266 539,260
City of Yonkers
N.Y. General Purp
5.5% due August 1, 2005 1,000,000 1,031,021 1,083,480 1,000,000 1,034,803 1,056,700
Commonwealth of Puerto Rico
General Obligation
5.50% due July 1, 2006 600,000 635,290 660,576 600,000 639,052 643,602
Metropolitan Transportation Authority
N.Y. SVC Contract
6.625% due July 1, 2002 1,000,000 1,000,762 1,091,290 1,000,000 1,000,940 1,087,460
Metropolitan Transportation Authority
N.Y. SVC Contract
5.75% due July 1, 2008 1,000,000 969,035 1,113,140 1,000,000 966,754 1,060,880
Monroe County, N.Y. - Rochester
Pub Improvement
6.00% due June 1, 2010 900,000 907,391 1,040,364 900,000 907,825 1,007,667
Mt. Sinai, N.Y. Union Free School District
AMBAC Insured
6.20% due February 15, 2011 1,070,000 1,065,379 1,250,916 1,070,000 1,065,135 1,207,645
Municipal Assistance Corp. for N.Y.C
N.Y. Resolution
6-5/8% due July 1, 2003 250,000 248,327 272,005 250,000 248,031 272,838
5.25% due July 1, 2002 500,000 510,245 520,470
</TABLE>
See accompanying notes.
- 2 -
<PAGE>
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
(Unaudited)
OCTOBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
1998 1997
------------------------------------ ------------------------------------
Principal Amortized Market Principal Amortized Market
Amount Cost Value Amount Cost Value
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Municipal Assistance Corp. for N.Y.C
N.Y. Resolution
6-5/8% due July 1, 2002 $ 750,000 $ 747,080 $ 819,615 $ 750,000 $ 746,399 $ 821,190
Municipal Assistance Corp. for N.Y.C
N.Y. Series E
6.00% due July 1, 2006 1,000,000 1,056,315 1,129,500 1,000,000 1,062,182 1,101,460
N.Y.C. General Obligations
5.40% due August 1, 2000 850,000 845,929 876,529 850,000 843,777 874,114
N.Y.C. Municipal Water
Fin. Auth
6.00% due June 24, 2009 2,000,000 2,223,935 2,295,740 -- -- --
N.Y. Culture Res. Rev
Refdg. Ser. 97 Adj. Rate
5-1/4% due April 1, 2005 1,000,000 1,000,000 1,032,330 1,000,000 1,000,000 1,016,860
N.Y.S. Dormitory Authority - State
University Educational Facilities
7-1/2% due May 15, 2011 590,000 577,914 730,367 590,000 577,360 725,747
N.Y.S. Dormitory Authority - State
University Educational Facilities
7.30% due May 15, 2000 735,000 735,000 774,344 735,000 735,000 789,809
N.Y.S. Dormitory Authority
Revs. Ser. B State University
5-1/4% due May 15, 2004 -- -- -- 1,000,000 1,026,651 1,036,160
N.Y.S. Dormitory Authority
Revs. City University System
6.25% due July 1, 2005 500,000 534,821 566,410 500,000 539,122 552,745
N.Y.S. Dormitory Authority
Pace University
6.5% due July 1, 2009 1,000,000 1,127,063 1,190,870 1,000,000 1,135,913 1,155,860
N.Y.S. Dormitory Authority
Ref. City University
5-3/4% due July 1, 2012 1,000,000 1,023,691 1,123,020 1,000,000 1,024,829 1,088,990
</TABLE>
See accompanying notes.
- 3 -
<PAGE>
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
(Unaudited)
OCTOBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
1998 1997
------------------------------------ ------------------------------------
Principal Amortized Market Principal Amortized Market
Amount Cost Value Amount Cost Value
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
N.Y.S. Environmental Facilities
Pollution Control - Revolving Fund
7.15% due March 15, 2002 $ 400,000 $ 400,000 $ 412,824 $ 400,000 $ 400,000 $ 422,340
5.75% due June 15, 2010 1,000,000 1,102,541 1,119,470 -- -- --
N.Y.S. General Purpose
5.00% due July 15, 2007 750,000 771,305 797,415 -- -- --
N.Y.S. Local Government Assistance Corp.
5.70% due April 1, 2003 1,000,000 996,104 1,071,810 1,000,000 995,350 1,054,240
5.60% due April 1, 2002 -- -- -- 1,000,000 998,019 1,047,090
6.75% due April, 2001 250,000 249,465 267,522 250,000 249,268 268,952
N.Y.S. Medical Care Facilities
Finance Agency - (FHA) Hospital
Revenue Insured Mortgages
7.10% due Feb. 15, 2000 35,000 35,000 36,607 75,000 75,000 79,435
N.Y.S. Ref. Unlimited Tax
6.50% due July 15, 2005 1,700,000 1,848,672 1,944,222 1,700,000 1,866,951 1,907,366
N.Y.S Thruway Authority
Hwy. & Bridge Fund
6.40% due April 1, 2004 500,000 517,248 562,630 500,000 519,900 555,225
N.Y.S. Thruway Authority SVC
Contract Revenue
6.00% due April 1, 2002 -- -- -- 1,000,000 1,024,643 1,056,400
N.Y.S. Thruway Authority
Revenue
5.50% due January 1, 2007 1,000,000 1,071,196 1,094,940 -- -- --
N.Y.S. Urban Development Corp.
Rev. Sub. Lic
6% due July 1, 2005 1,500,000 1,575,047 1,668,194 1,500,000 1,584,281 1,631,385
Long Island Power Authority
Elec. System Rev
6.00% due December 1, 2007 1,000,000 1,133,865 1,139,050 -- -- --
</TABLE>
See accompanying notes.
- 4 -
<PAGE>
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
(Unaudited)
OCTOBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
1998 1997
-------------------------------------- ----------------------------------------
Principal Amortized Market Principal Amortized Market
Amount Cost Value Amount Cost Value
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Power Authority of N.Y.S
General Purpose Revenue:
6-7/8% due Jan. 1, 2010 $ -- $ -- $ -- $ -- $ -- $ --
6-1/2% due Jan. 1, 2008 1,675,000 1,730,852 1,938,863 1,675,000 1,735,300 1,898,077
7.40% due Jan. 1, 2006 -- -- -- -- -- --
6-5/8% due Jan. 1, 2003 1,000,000 1,022,670 1,105,630 1,000,000 1,027,325 1,102,240
6.40% due Jan. 1, 2000 -- -- -- 1,000,000 1,000,290 1,045,640
Puerto Rico Electric Power
Authority Star & Stripe
5.8% due July 1, 2005 500,000 528,184 551,490 500,000 531,693 542,435
5.5% due July 1, 2009 1,065,000 1,170,467 1,181,586 -- -- --
Puerto Rico Highways & Trans
Authority
6.25% due July 1, 2004 -- -- -- 1,000,000 1,069,934 1,112,330
Puerto Rico Municipal
Finance Agency
6% due July 1, 2005 -- -- -- 1,000,000 1,054,695 1,094,910
United Nations Development
Corp. N.Y
6% due July 1, 2026 -- -- -- 1,000,000 1,103,128 1,098,610
University of Puerto Rico
6.250% due June 1, 2008 1,000,000 1,058,970 1,167,560 1,000,000 1,063,544 1,137,410
----------- ----------- ----------- ----------- ----------- -----------
$34,620,000 $36,231,776 $38,625,784 $34,845,000 $36,025,029 $37,893,967
=========== =========== =========== =========== =========== ===========
</TABLE>
See accompanying notes.
- 5 -
<PAGE>
TRIDAN CORP.
STATEMENTS OF OPERATIONS
(Unaudited)
SIX MONTHS ENDED OCTOBER 31, 1998 AND 1997
1998 1997
----------- -----------
Investment income
Interest $ 1,070,965 $ 1,137,554
Amortization of bond premium and
discount - net (71,877) (52,567)
----------- -----------
Total investment income 999,088 1,084,987
----------- -----------
Expenses
Investment advisory fee (Note 2) 54,512 55,070
Professional fees 32,771 43,116
Directors' fees 22,500 22,500
Administrative fees 37,645 51,900
Insurance and administrative expenses 4,458 8,164
----------- -----------
Total expenses 151,886 180,750
----------- -----------
Investment income - net 847,202 904,237
----------- -----------
Realized and unrealized gain (loss) on investments
Net realized gain on investments 210,398 240,493
Change in unrealized appreciation of
investments for the period 809,364 765,839
----------- -----------
Net gain on investments 1,019,762 1,006,332
----------- -----------
Net increase in assets resulting
from operations $ 1,866,964 $ 1,910,569
=========== ===========
See accompanying notes.
- 6 -
<PAGE>
TRIDAN CORP.
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
SIX MONTHS ENDED OCTOBER 31, 1998, 1997 AND 1996
<TABLE>
<CAPTION>
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Increase (decrease) in net assets
resulting from operations
Investment income - net $ 847,202 $ 904,237 $ 924,080
Net realized gain on investments 210,398 240,493 486,621
Change in unrealized appreciation 809,364 765,839 (268,229)
------------ ------------ ------------
Net increase in net assets resulting
from operations 1,866,964 1,910,569 1,142,472
------------ ------------ ------------
Redemptions of 471.6340 and 5,423.9700 shares
in 1997 and 1996, respectively -- (5,900) (67,433)
------------ ------------ ------------
Distributions to shareholders:
Investment income - net (tax exempt) (833,905) (1,099,251) (1,087,413)
Long-term capital gains - net (107,513) -- (16,400)
------------ ------------ ------------
(941,418) (1,099,251) (1,103,813)
------------ ------------ ------------
Total increase (decrease) 925,546 805,418 (28,774)
------------ ------------ ------------
Net assets
Beginning of period 38,806,650 38,476,318 39,200,653
------------ ------------ ------------
End of period, including
- Net undistributed (overdistributed)
investment income - net of $18,802,
$10,965 and $(54,675), respectively
- Net undistributed capital gains of
$139,445, $194,426 and $486,592 in
1998, 1997 and 1996, respectively $ 39,732,196 $ 39,281,736 $ 39,171,879
============ ============ ============
</TABLE>
See accompanying notes.
- 7 -
<PAGE>
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
SIX MONTHS ENDED OCTOBER 31, 1998 AND 1997
Note 1- Significant Accounting Policies
The following is a summary of the significant policies followed
by Tridan Corp. (the "Company"), a closed-end, non-diversified
management investment company registered under the Investment Company
Act of 1940, in the preparation of its financial statements.
Acquisition and Valuation of Investments
Investment transactions are accounted for on the date the
securities are purchased/sold (trade date) and interest on securities
acquired/sold is included in income from/to the settlement date.
Investments are carried at amortized cost in the Company's accounting
records but are shown at market value in its financial statements.
Short-term investments are stated at cost, which is equivalent to
market value.
Market values for the Company's investments in municipal
obligations have been determined based on the bid price of the
obligation, if available; if not available, such value is based on a
yield matrix for similarly traded municipal obligations.
Amortization of Bond Premium or Discount
In determining investment income, bond premium or discount is
amortized on a straight-line basis over the remaining term of the
obligation.
Income Taxes
It is the Company's policy to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment
companies and to distribute substantially all of its investment income
- net and net realized capital gains that were not offset by capital
loss carryforwards. Therefore, no income tax provision is required.
Cash and Cash Equivalents
The Company considers all investments that can be liquidated on
demand to be cash equivalents. The Company maintains all of its cash
and cash equivalents in one financial institution. At times, such
balances may be in excess of amounts insured by the Federal Deposit
Insurance Corporation.
Concentration of Credit Risk
The value of the Company's investments may be subject to possible
risks involving, among other things, the continued creditworthiness of
the various state and local government agencies and public financing
authorities underlying its investments. The Company and its investment
advisor periodically consider the credit quality of the Company's
investments, and the Company adheres to its investment objective of
investing only in investment grade securities.
- 8 -
<PAGE>
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
SIX MONTHS ENDED OCTOBER 31, 1998 AND 1997
Note 2 - Investment Advisory Fee
The Company utilizes the services of Morgan Guaranty Trust
Company of New York ("Morgan") as its investment advisor and custodian
for its investments. The annual advisory fee is .28 of one percent of
the net assets under management. The fee is computed and payable
quarterly, based on the market value of net assets held by Morgan on
the last day of each fiscal quarter.
Note 3 - Investment Transactions
Purchases and sales of investments in municipal obligations
(excluding short-term and demand investments) amounted to
approximately $6,771,000 and $6,843,000, respectively, for the six
months ended October 31, 1998 and $6,443,000 and $5,314,000,
respectively, for the six months ended October 31, 1997.
At October 31, 1998 and 1997, the net unrealized appreciation on
investments in municipal obligations was $2,394,008 and $1,868,938,
respectively.
Note 4 - Common Stock, Net Asset Values and Share Redemption Plan
At October 31, 1998 and 1997, there were 6,000,000 shares of
$0.02 par value common stock authorized of which 3,199,100 had been
issued aggregating $63,982, and additional paid-in capital aggregating
$312,787.
The net asset value per share is calculated by dividing the value
of all assets less total liabilities by the number of common shares
outstanding at the end of the period.
The net asset value per share and the shares outstanding were as
follows:
October 31,
---------------------------
1998 1997
-------- ---------
Net asset value:
- at market value of the
underlying investments $ 12.66 $ 12.51
- at amortized cost $ 11.90 $ 11.91
Shares outstanding at:
October 31, 1998 3,138,061.6805
October 31, 1997 3,140,244.982
In fiscal 1982, the Company adopted a share redemption plan which
permits "eligible shareholders" or their estates to have their shares
redeemed upon reaching age 65 or upon death. Shares are redeemed at
the net asset value per share as of the end of the Company's fiscal
quarter in which the request for redemption is received. At October
31, 1998 and 1997, $700,355 (61,038.3195 shares) and $672,889
(58,855.018 shares), respectively, had been redeemed under this plan.
- 9 -
<PAGE>
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
SIX MONTHS ENDED OCTOBER 31, 1998 AND 1997
Note 5 - Distributions
During the six months ended October 31, 1998 and 1997,
distributions, which except for capital gains were exempt from federal
income tax of $941,418 (.30 per share) and $1,099,251 (.35 per share),
respectively, were declared and paid to shareholders.
Note 6 - Contingency
Prior to becoming a management investment company in April 1980,
the Company, through its subsidiaries, was engaged in the business of
manufacturing and selling women's and children's apparel, principally
under the trademark "Danskin". In April 1980, the Company sold this
business to International Playtex, Inc. ("Playtex"). The item outlined
below relates to these prior operations of the Company.
On May 25, 1982, the Company was notified by Playtex of certain
counterclaims asserted by a former customer of the Company in an
action instituted by Playtex to recover amounts allegedly due for
goods sold and delivered to this former customer. This former customer
seeks damages of approximately $800,000 for the Company's and
Playtex's alleged refusal to sell merchandise to them since July 1979.
In management's opinion, it is unlikely that the resolution of this
contingency will result in a liability which would materially affect
the Company's financial position.
- 10 -
<PAGE>
TRIDAN CORP.
SUPPLEMENTARY INFORMATION
(Unaudited)
Selected per share data and ratios
<TABLE>
<CAPTION>
Six Months Ended October 31,
-----------------------------------------------------------------
1998 1997 1996 1995 1994
--------- --------- --------- --------- ---------
Per share data:
<S> <C> <C> <C> <C> <C>
Investment income $ .32 $ .35 $ .34 $ .39 $ .39
Expenses (.05) (.06) (.05) (.05) (.05)
--------- --------- --------- --------- ---------
Investment income - net .27 .29 .29 .34 .34
Net realized and unrealized
gain (loss) on investments .32 .32 .07 .19 (.26)
Distributions (.30) (.35) (.35) (.35) (.35)
--------- --------- --------- --------- ---------
Net increase (decrease) in net asset
value .29 .26 .01 .18 (.27)
Net asset value:
Beginning of period 12.37 12.25 12.43 12.47 12.49
--------- --------- --------- --------- ---------
End of period $ 12.66 $ 12.51 $ 12.44 $ 12.65 $ 12.22
========= ========= ========= ========= =========
Ratios:
Expenses to average net assets .40% .46% .41% .38% .41%
Investment income - net to
average net assets 2.16% 2.33% 2.36% 2.69% 2.80%
Average number of shares
outstanding (in thousands) 3,138 3,140 3,150 3,157 3,161
</TABLE>
- 11 -
<PAGE>
TRIDAN CORP.
SCHEDULES OF ACCRUED LIABILITIES
OCTOBER 31, 1998 AND 1997
1998 1997
------- -------
Professional fees
Kantor, Davidoff, Wolfe, Rabbino & Kass, P.C $15,364 $14,766
Leslie Sufrin and Company, P.C -- 5,275
------- -------
15,364 20,041
------- -------
Investment advisory fee - Morgan Guaranty 27,500 27,500
------- -------
Administrative fees
Yohalem Gillman & Company LLP 10,411 12,676
------- -------
$53,275 $60,217
======= =======
- 12 -
<PAGE>
TRIDAN CORP.
ANALYSIS OF PROFESSIONAL AND ADMINISTRATIVE FEES
SIX MONTHS ENDED OCTOBER 31, 1998 AND 1997
1998 1997
------- -------
Professional fees
Kantor, Davidoff, Wolfe, Rabbino & Kass, P.C $32,771 $39,400
Leslie Sufrin and Company, P.C -- 2,785
Krass & Lund, P.C -- 931
------- -------
$32,771 $43,116
======= =======
Administrative fees
Yohalem Gillman & Company LLP $37,645 $51,900
======= =======
- 13 -
