To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial data for the quarter ended September 30, 2013 prepared by management without audit by our independent registered public accounting firm and other pertinent information are submitted herewith.
Comparative net assets are as follows:
| Sept. 30, 2013 | June 30, 2013 | Dec. 31, 2012 | ||||||||||
| Net assets | $ | 638,397,153 | $ | 613,622,946 | $ | 569,465,087 | ||||||
| Net assets per share of Common Stock | 27.89 | 26.50 | 24.53 | |||||||||
| Shares of Common Stock outstanding | 22,885,973 | 23,153,852 | 23,218,307 | |||||||||
Comparative operating results are as follows:
| Nine months ended September 30, | ||||||||
| 2013 | 2012 | |||||||
| Net investment income | $ | 2,832,045 | $ | 6,496,263 | ||||
| Per share of Common Stock | .12 | * | .28 | * | ||||
| Net realized gain on sale of investments | 79,577,054 | 6,513,396 | ||||||
| Decrease in net unrealized appreciation of investments | (1,399,884 | ) | (17,011,536 | ) | ||||
| Increase (decrease) in net assets resulting from operations | 81,009,215 | (4,001,877 | ) | |||||
* Per-share data are based on the average number of Common shares outstanding during the nine-month period.
In the quarter ended September 30, 2013 the Corporation purchased 267,879 shares of its Common Stock at an average price of $22.77 per share. The Corporation may from time to time purchase its Common Stock in such amounts and at such prices as the Board of Directors deems advisable in the best interests of stockholders. Purchases may be made in the open market, or in private transactions directly with stockholders.
We are pleased to report that during the third quarter, Central completed its previously announced sale of 35,000 shares of The Plymouth Rock Company, Inc.
Stockholders’ inquiries are welcome.
Central Securities Corporation
Wilmot H. Kidd, President
630 Fifth Avenue
New York, NY 10111
October 9, 2013
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PRINCIPAL PORTFOLIO CHANGES
July 1 to September 30, 2013
(Common Stock unless specified otherwise)
(unaudited)
| Number of Shares | ||||||||||
| Purchased | Sold | Held September 30, 2013 | ||||||||
| Canadian Oil Sands Ltd. | 350,000 | — | ||||||||
| CEVA, Inc. | 19,000 | 829,900 | ||||||||
| Clean Harbors, Inc. | 150,000 | 150,000 | ||||||||
| Coach, Inc. | 150,000 | 150,000 | ||||||||
| Devon Energy Corporation | 200,000 | — | ||||||||
| Freeport–McMoRan Copper & Gold Inc. | 100,000 | 400,000 | ||||||||
| GeoMet, Inc. | 2,000,000 | — | ||||||||
| GeoMet, Inc. Series A Convertible | ||||||||||
| Redeemable Preferred Stock | 8,937 | (a) | 294,941 | |||||||
| International Business Machines Corporation | 20,000 | 20,000 | ||||||||
| JP Morgan Chase & Co. | 75,000 | 175,000 | ||||||||
| Medtronic, Inc. | 100,000 | 200,000 | ||||||||
| Motorola Solutions, Inc | 10,000 | 260,000 | ||||||||
| Murphy USA, Inc. | 70,000 | (b) | 70,000 | |||||||
| The Plymouth Rock Company, Inc. | 35,000 | 34,660 | ||||||||
| Primus Telecommunications Group, Inc. | 145,425 | — | ||||||||
| RadiSys Corporation | 393,800 | 534,900 | ||||||||
| Vical Inc. | 228,000 | — | ||||||||
| Xerox Corporation | 890,000 | 100,000 | ||||||||
(a) Received as a dividend.
(b) Received as a spin off from Murphy Oil Corporation.
TEN LARGEST INVESTMENTS
September 30, 2013
(unaudited)
| Cost | Value | Percent of Net Assets | Year First Acquired | |||||||||||||
| (millions) | ||||||||||||||||
| The Plymouth Rock Company, Inc. | $ | 0.9 | $ | 91.8 | 14.4 | % | 1982 | |||||||||
| Coherent, Inc. | 18.1 | 41.7 | 6.5 | 2007 | ||||||||||||
| Intel Corporation | 16.3 | 34.2 | 5.3 | 1986 | ||||||||||||
| Agilent Technologies, Inc. | 12.6 | 30.2 | 4.7 | 2005 | ||||||||||||
| Analog Devices, Inc. | 8.8 | 28.2 | 4.4 | 1987 | ||||||||||||
| The Bank of New York Mellon Corporation | 18.3 | 27.9 | 4.4 | 1993 | ||||||||||||
| Brady Corporation | 1.2 | 18.0 | 2.8 | 1984 | ||||||||||||
| Murphy Oil Corporation | 0.9 | 16.9 | 2.6 | 1974 | ||||||||||||
| Capital One Financial Corporation | 13.0 | 16.5 | 2.6 | 2013 | ||||||||||||
| Motorola Solutions, Inc. | 11.8 | 15.4 | 2.4 | 2000 | ||||||||||||
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BOARD OF DIRECTORS
Wilmot H. Kidd, Chairman
Simms C. Browning, Lead Independent Director
L. Price Blackford
Donald G. Calder
David C. Colander
Jay R. Inglis
C. Carter Walker, Jr.
OFFICERS
Wilmot H. Kidd, President
Marlene A. Krumholz, Vice President and Secretary
Andrew J. O’Neill, Vice President
Lawrence P. Vogel, Vice President and Treasurer
OFFICE
630 Fifth Avenue
New York, NY 10111
212-698-2020
866-593-2507 (toll free)
www.centralsecurities.com
TRANSFER AGENT AND REGISTRAR
Computershare Trust Company, N.A.
P. O. Box 43069, Providence, RI 02940-3069
800-756-8200
www.computershare.com
CUSTODIAN
UMB Bank, N.A.
Kansas City, MO
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
New York, NY
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