CENTRAL SECURITIES CORPORATION
_________
INTERIM REPORT TO STOCKHOLDERS
AS OF SEPTEMBER 30, 2024
[2]
To the Stockholders of
Central Securities Corporation:
Financial data for the quarter ended September 30, 2024 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, 2024 |
|
June 30, 2024 |
|
Dec. 31, 2023 |
|
Net assets |
|
$1,594,454,696 |
|
$1,492,593,177 |
|
$1,319,864,836 |
|
Net assets per share of Common Stock |
|
$56.17 |
|
$52.58 |
|
$46.49 |
|
Shares of Common Stock outstanding |
|
28,387,828 |
|
28,387,828 |
|
28,387,828 |
Comparative operating results are as follows:
|
|
Nine months ended September 30, |
||||
|
|
|
2024 |
|
2023 |
|
|
Net investment income |
|
$14,723,083 |
|
$14,145,995 |
|
|
Per share of Common Stock |
|
0.52 |
* |
0.51 |
* |
|
Net realized gain on sale of investments |
|
38,432,417 |
|
31,190,225 |
|
|
Increase in net unrealized appreciation of investments |
|
227,111,926 |
|
48,074,843 |
|
|
Increase in net assets resulting from operations |
|
280,267,426 |
|
93,411,063 |
|
* Per-share data are based on the average number of Common shares outstanding during the nine-month period.
During the nine-month period ended September 30, 2024, the Corporation discovered unauthorized activity in our internal computer systems and engaged third-party cybersecurity experts to investigate, respond and remediate. The investigation and remediation efforts have concluded, and we have determined that the unauthorized activity did not have a material impact on the Corporation or its operations. Costs associated with these efforts are included in net investment income.
During the nine months ended September 30, 2024, the Corporation did not purchase any shares of its Common Stock. 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.
Stockholders’ inquiries are welcome.
John C. Hill Wilmot H. Kidd Andrew J. O’Neill
630 Fifth Avenue
New York, NY 10111
November 5, 2024
[3]
PRINCIPAL PORTFOLIO CHANGES
July 1 to September 30, 2024
(Common Stock unless specified otherwise)
(unaudited)
|
|
|
Number of Shares |
||||
|
|
|
Purchased |
|
Sold |
|
Held
|
|
AerCap Holdings N.V. |
|
— |
|
155,000 |
|
120,000 |
|
American Express Company |
|
— |
|
30,000 |
|
170,000 |
|
The Charles Schwab Corporation |
|
100,000 |
|
— |
|
800,000 |
|
Coherent Corporation |
|
— |
|
200,000 |
|
200,000 |
|
JPMorgan Chase & Co. |
|
— |
|
20,000 |
|
180,000 |
|
Motorola Solutions, Inc. |
|
— |
|
5,000 |
|
145,000 |
|
Progressive Corporation |
|
— |
|
10,000 |
|
420,000 |
|
Wolfspeed, Inc. |
|
— |
|
170,000 |
|
— |
TEN LARGEST INVESTMENTS
September 30, 2024
(excluding short-term investments)
(unaudited)
|
|
|
Cost |
|
Market Value |
|
Percent of Net Assets |
|
Year First Acquired |
|
|
|
(millions) |
|
|
|
|
||
|
The Plymouth Rock Company, Inc. |
|
$0.7 |
|
$397.9 |
|
25.0% |
|
1982 |
|
Progressive Corporation |
|
24.4 |
|
106.6 |
|
6.7 |
|
2015 |
|
Analog Devices, Inc. |
|
3.0 |
|
92.1 |
|
5.8 |
|
1987 |
|
Alphabet, Inc. |
|
21.8 |
|
74.6 |
|
4.7 |
|
2015 |
|
Motorola Solutions, Inc. |
|
5.7 |
|
65.2 |
|
4.1 |
|
2000 |
|
Meta Platforms, Inc. |
|
30.3 |
|
57.2 |
|
3.6 |
|
2021 |
|
The Charles Schwab Corporation |
|
32.7 |
|
51.8 |
|
3.3 |
|
2016 |
|
American Express Company |
|
13.8 |
|
46.1 |
|
2.9 |
|
2015 |
|
Capital One Financial Corporation |
|
17.6 |
|
44.9 |
|
2.8 |
|
2013 |
|
Amazon.com Inc. |
|
3.7 |
|
41.9 |
|
2.6 |
|
2014 |
[4]
BOARD OF DIRECTORS
Wilmot H. Kidd, Chairman
L. Price Blackford, Lead Independent Director
Simms C. Browning
Donald G. Calder
John C. Hill
Wilmot H. Kidd IV
David M. Poppe
OFFICERS
John C. Hill, Chief Executive Officer and President
Marlene A. Krumholz, Vice President and Secretary
Joseph T. Malone, Vice President and Treasurer
Andrew J. O’Neill, Vice President
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 43078, Providence, RI 02940-3078
800-756-8200
www.computershare.com
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
New York, NY