UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act File Number 811-179
Name of registrant as specified in charter: Central Securities Corporation
Address of principal executive offices:
375 Park Avenue
Suite 3404
New York, New York 10152
Name and address of agent for service:
Central Securities Corporation, Wilmot H. Kidd, President
375 Park Avenue
Suite 3404
New York, New York 10152
Registrant's telephone number, including area code: 212-688-3011
Date of fiscal year end: December 31, 2003
Date of reporting period: January 1, 2003 - June 30, 2003
Item 1. Reports to Stockholders.
================================================================================
CENTRAL SECURITIES CORPORATION
----------
SEMI-ANNUAL REPORT
JUNE 30, 2003
================================================================================
CENTRAL SECURITIES CORPORATION
(Organized on October 1, 1929 as an investment company, registered as
such with the Securities and Exchange Commission under the
provisions of the Investment Company Act of 1940.)
TEN YEAR HISTORICAL DATA
Per Share of Common Stock
------------------------------------
Total Convertible Net Net Net realized Unrealized
net Preference asset investment Divi- Distribu- investment appreciation
Year assets Stock(A) value income(B) dends(C) tions(C) gain of investments
---- ------ ----------- ----- ---------- -------- --------- ------------ --------------
1992 $165,599,864 $10,019,000 $14.33 $ 70,586,429
1993 218,868,360 9,960,900 17.90 $ .14 $ .18 $ 1.42 $16,407,909 111,304,454
1994 226,639,144 9,687,575 17.60 .23 .22 1.39 16,339,601 109,278,788
1995 292,547,559 9,488,350 21.74 .31 .33 1.60 20,112,563 162,016,798
1996 356,685,785 9,102,050 25.64 .27 .28 1.37 18,154,136 214,721,981
1997 434,423,053 9,040,850 29.97 .24 .34 2.08 30,133,125 273,760,444
1998 476,463,575 8,986,125 31.43 .29 .29 1.65 22,908,091 301,750,135
1999 590,655,679 -- 35.05 .26 .26 2.34 43,205,449 394,282,360
2000 596,289,086 -- 32.94 .32 .32 4.03 65,921,671 363,263,634
2001 539,839,060 -- 28.54 .18 .22 1.58* 13,662,612 304,887,640
2002 361,942,568 -- 18.72 .14 .14 1.11 22,869,274 119,501,484
6 mos. to
June 30, 421,972,928 -- 22.06 .07 .01 .11 15,999,401 168,084,528
2003**
----------
A - At liquidation preference.
B - Excluding gains or losses realized on sale of investments and the
dividend requirement on the Convertible Preference Stock which was
redeemed on August 1, 1999.
C - Computed on the basis of the Corporation's status as a "regulated
investment company" for Federal income tax purposes. Dividends are from
undistributed net investment income. Distributions are from long-term
investment gains.
* Includes a non-taxable return of capital of $.55.
** Unaudited.
The Common Stock is listed on the American Stock Exchange. On June 30,
2003 the market quotations were as follows:
Common Stock.................................. $18.85 low, $18.99 high
and $18.92 last sale
[ 2 ]
To the Stockholders of
CENTRAL SECURITIES CORPORATION:
Financial statements for the six months ended June 30, 2003 reviewed by
our independent accountants and other pertinent information are submitted
herewith.
Comparative net assets are as follows:
June 30,
2003 December 31,
(Unaudited) 2002
----------- ------------
Net assets ................................... $421,972,928 $ 361,942,568
Net assets per share of Common Stock ......... 22.06 18.72
Shares of Common Stock outstanding ....... 19,124,984 19,337,284
Comparative operating results are as follows:
Six months ended June 30,
----------------------------
2003 2002
(Unaudited) (Unaudited)
----------- -----------
Net investment income ........................ $ 1,325,898 $ 1,724,727
Per share of Common Stock ................ .07* .09*
Net realized gain on sale of investments ..... 15,999,401 24,051,213
Increase (decrease) in net unrealized
appreciation of investments ................ 48,583,044 (110,396,802)
Increase (decrease) in net assets
resulting from operations .................. 65,908,343 (84,620,862)
----------
* Per-share data are based on the average number of Common shares
outstanding.
A dividend of $.12 per share was paid on June 20, 2003 to holders of
Common Stock. Stockholders will be sent a notice concerning the taxability of
all 2003 distributions in January 2004.
During the first six months of 2003 the Corporation repurchased 212,300
shares of its Common Stock at an average price per share of $16.84. These shares
were purchased on the American Stock Exchange. 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
July 23, 2003
[ 3 ]
TEN LARGEST INVESTMENTS
June 30, 2003
(Unaudited)
% of Year First
Cost Value Net Assets Acquired
---- ----- ---------- ----------
(millions)
The Plymouth Rock Company, Inc. ....... $ 2.2 $51.9 12.3% 1982
American Management Systems, Inc. ..... 22.2 23.2 5.5 1984
Intel Corporation ..................... .5 21.9 5.2 1986
Capital One Financial Corporation ..... 2.2 21.6 5.1 1994
Analog Devices, Inc. .................. .6 17.4 4.1 1987
Brady Corporation ..................... 2.4 17.3 4.1 1984
The Bank of New York Company, Inc. .... 4.1 16.1 3.8 1993
Murphy Oil Corporation ................ 3.1 15.8 3.7 1974
SunGard Data Systems Inc. ............. 6.7 15.3 3.6 1999
Unisys Corporation .................... 12.6 14.1 3.3 1999
PRINCIPAL PORTFOLIO CHANGES
April 1 to June 30, 2003
(Unaudited)
(Common Stock unless specified otherwise)
Number of Shares
----------------------------------------
Held
June 30,
Purchased Sold 2003
--------- ---- --------
Affymetrix, Inc...................... 100,000 100,000
Analog Devices, Inc.................. 50,000 500,000
Apple Computer Inc................... 100,000 100,000
Arch Capital Group Ltd............... 90,000 110,000
ArvinMeritor, Inc.................... 60,000 640,000
The Bank of New York Company, Inc.... 40,000 560,000
Capital One Financial Corp........... 60,000 440,000
CarMax, Inc.......................... 10,000 100,000*
Concord EFS, Inc..................... 100,000 --
Dover Corporation.................... 170,000 170,000
Duke Energy Corp..................... 20,000 130,000
Flextronics International Ltd........ 50,000 1,300,000
HSBC Holdings Plc Ltd................ 53,500 --
Impath Inc........................... 70,000 490,000
Ingram Micro Inc. Class A............ 180,000 180,000
Intel Corporation.................... 60,000 1,050,000
Laboratory Corporation of
America Holdings, Inc. ............ 110,000 110,000
Rohm and Haas Company................ 50,000 250,000
Roper Industries, Inc................ 64,700 84,700*
Schering-Plough Corp................. 100,000 400,000
----------
* Includes shares considered "Other Investments" at March 31, 2003.
[ 4 ]
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003
(Unaudited)
ASSETS:
Investments:
General portfolio securities at
market value (cost $205,090,957)
(Note 1) .................................. $ 321,735,620
Securities of affiliated companies
(cost $3,462,486) (Notes 1, 5 and 6) ...... 54,902,351
Short-term investments (cost $45,276,211) ... 45,276,211 $421,914,182
-------------
Cash, receivables and other assets:
Cash and dividends receivable ............... 137,450
Office equipment, net ....................... 24,104
Other assets ................................ 38,720 200,274
------------- ------------
Total Assets .............................. 422,114,456
LIABILITIES:
Accrued expenses and reserves ................. 141,528
-------------
Total Liabilities ......................... 141,528
------------
NET ASSETS ...................................... $421,972,928
============
NET ASSETS are represented by:
Common Stock $1 par value: authorized
30,000,000 shares; issued 19,347,284
(Note 2) .................................... $ 19,347,284
Surplus:
Paid-in ..................................... $ 221,065,405
Undistributed net gain on sales of
investments ............................... 15,999,970
Undistributed net investment income ......... 1,221,276 238,286,651
-------------
Net unrealized appreciation of investments .... 168,084,528
Treasury stock, at cost (222,300 shares of
Common Stock) (Note 2) ...................... (3,745,535)
------------
NET ASSETS ...................................... $421,972,928
============
NET ASSET VALUE PER COMMON SHARE
(19,124,984 shares outstanding) ............... $22.06
======
See accompanying notes to financial statements
and independent accountants' review report.
[ 5 ]
STATEMENT OF OPERATIONS
For the six months ended June 30, 2003
(Unaudited)
INVESTMENT INCOME
Income:
Dividends (net of foreign withholding
taxes of $3,395) ............................ $ 2,035,635
Interest ...................................... 290,042 $ 2,325,677
-----------
Expenses:
Administration and operations ................. 270,237
Investment research ........................... 240,458
Rent and utilities ............................ 85,599
Franchise and miscellaneous taxes ............. 72,239
Listing, software and sundry fees ............. 55,817
Insurance ..................................... 53,464
Directors' fees ............................... 51,000
Legal, auditing and tax fees .................. 34,388
Publications .................................. 25,593
Stationery, supplies, printing
and postage ................................. 24,918
Transfer agent and registrar fees
and expenses ................................ 17,805
Travel and telephone .......................... 13,013
Custodian fees ................................ 11,727
Employees' retirement plans ................... 7,600
Miscellaneous ................................. 35,921 999,779
----------- -----------
Net investment income ........................... 1,325,898
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain from security
transactions .................................. 15,999,401
Net increase in unrealized appreciation
of investments ................................ 48,583,044
-----------
Net gain on investments ....................... 64,582,445
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................... $65,908,343
===========
See accompanying notes to financial statements
and independent accountants' review report.
[ 6 ]
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended June 30, 2003
and the year ended December 31, 2002
Six months
ended
June 30, Year ended
2003 December 31,
(Unaudited) 2002
------------- -------------
FROM OPERATIONS:
Net investment income ........................ $ 1,325,898 $ 2,592,249
Net realized gain on investments ............. 15,999,401 22,869,274
Net increase (decrease) in unrealized
appreciation of investments .............. 48,583,044 (185,386,156)
------------- -------------
Increase (decrease) in net assets
resulting from operations ................ 65,908,343 (159,924,633)
------------- -------------
DISTRIBUTIONS TO STOCKHOLDERS FROM:
Net investment income ........................ (129,008) (2,571,208)
Net realized gain from investment
transactions ............................... (2,173,790) (20,694,915)
------------- -------------
Decrease in net assets from distributions .. (2,302,798) (23,266,123)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS: (Note 2)
Distribution to stockholders reinvested
in Common Stock ............................ -- 12,119,838
Cost of shares of Common Stock repurchased ... (3,575,185) (6,825,574)
------------- -------------
Increase (decrease) in net assets from
capital share transactions ............... (3,575,185) 5,294,264
------------- -------------
Total increase (decrease) in net assets .. 60,030,360 (177,896,492)
NET ASSETS:
Beginning of period .......................... 361,942,568 539,839,060
------------- -------------
End of period (including undistributed net
investment income of $1,221,276 and $24,386,
respectively) .............................. $ 421,972,928 $ 361,942,568
============= =============
See accompanying notes to financial statements
and independent accountants' review report.
[ 7 ]
STATEMENT OF INVESTMENTS
June 30, 2003
(Unaudited)
PORTFOLIO SECURITIES (89.3%)
STOCKS (COMMON UNLESS SPECIFIED OTHERWISE)
Prin. Amt.
or Shares Value
---------- -----
Banking and Finance 9.7%
560,000 The Bank of New York Company, Inc............ $ 16,100,000
440,000 Capital One Financial Corporation............ 21,639,200
100,000 FleetBoston Financial Corporation............. 2,971,000
------------
40,710,200
------------
Chemicals 3.3%
1,372,400 PolyOne Corporation(a)........................ 6,107,180
250,000 Rohm and Haas Company......................... 7,757,500
------------
13,864,680
------------
Communications 1.6%
1,000,000 Cincinnati Bell Inc.(a)(d).................... 6,700,000
------------
Computer Software & Services 18.9%
280,000 Accenture Ltd.(a)............................. 5,065,200
1,620,000 American Management Systems, Inc.(a)......... 23,182,200
880,000 Convergys Corporation(a)...................... 14,080,000
200,000 Peerless Systems Corporation(a)............... 506,000
590,000 SunGard Data Systems Inc.(a).................. 15,286,900
900,000 The TriZetto Group, Inc.(a)................... 5,391,000
1,150,000 Unisys Corporation(a)......................... 14,122,000
500,000 Wind River Systems, Inc.(a)................... 1,905,000
------------
79,538,300
------------
Electronics 14.9%
500,000 Analog Devices, Inc.(a)....................... 17,410,000
100,000 Apple Computer Inc.(a)........................ 1,906,000
1,300,000 Flextronics International Ltd.(a)............. 13,559,000
180,000 Ingram Micro Inc. Class A..................... 1,980,000
1,050,000 Intel Corporation............................. 21,850,500
330,000 Motorola, Inc................................. 3,111,900
800,000 Solectron Corporation(a)...................... 2,992,000
------------
62,809,400
------------
Energy 8.1%
130,000 Duke Energy Corporation....................... 2,593,500
160,000 EnCana Corporation............................ 6,139,200
220,000 Kerr-McGee Corporation........................ 9,856,000
300,000 Murphy Oil Corporation........................ 15,780,000
------------
34,368,700
------------
[ 8 ]
Prin. Amt.
or Shares Value
---------- -----
Health Care 6.3%
100,000 Affymetrix, Inc.(a)........................... $ 1,971,000
490,000 Impath Inc.(a)................................ 6,913,900
110,000 Laboratory Corporation of America Holdings(a) 3,316,500
100,000 Merck & Co. Inc............................... 6,055,000
400,000 Schering-Plough Corporation................... 7,440,000
150,000 Vical Incorporated(a)......................... 678,000
------------
26,374,400
------------
Insurance 16.0%
100,000 American International Group, Inc............. 5,518,000
110,000 Arch Capital Group Ltd.(a).................... 3,814,800
50,000 Everest Re Group Ltd.......................... 3,825,000
50,000 Marsh & McLennan Companies, Inc.............. 2,553,500
70,000 The Plymouth Rock Company, Inc. Class A(b)(c) 51,940,000
------------
67,651,300
------------
Manufacturing 9.1%
640,000 ArvinMeritor, Inc............................. 12,915,200
520,000 Brady Corporation Class A..................... 17,342,000
170,000 Dover Corporation............................. 5,093,200
84,700 Roper Industries, Inc......................... 3,150,840
------------
38,501,240
------------
Retail Trade 0.7%
100,000 CarMax, Inc.(a)............................... 3,015,000
------------
Transportation 0.7%
533,757 Transport Corporation of America, Inc.
Class B(a)(b)............................... 2,962,351
------------
Miscellaneous 0.0%
Grumman Hill Investments, L.P.(a)(c)......... 142,400
------------
Total Portfolio Securities
(cost $208,553,443)...................... 376,637,971
------------
[ 9 ]
Prin. Amt.
or Shares Value
---------- -----
SHORT-TERM INVESTMENTS 10.7%
Commercial Paper 4.4%
$ 7,509,000 John Deere Credit Corp. 0.901%
due 7/30/03................................. $ 7,503,556
11,058,000 Prudential Funding Corp. 1.081%
due 7/2/03.................................. 11,057,668
------------
18,561,224
------------
U.S. Treasury Bills 6.3%
26,724,000 U.S. Treasury Bills 0.710%- 0.913%
due 7/10/03-7/24/03......................... 26,714,987
------------
Total Short-Term Investments
(cost $45,276,211)..................... 45,276,211
------------
Total Investments
(cost $253,829,654)(100.0%)............ 421,914,182
Cash, receivables and other assets
less liabilities (0.0%)................. 58,746
------------
Net Assets (100%)......................... $421,972,928
============
----------
(a) Non-dividend paying.
(b) Affiliate as defined in the Investment Company Act of 1940.
(c) Valued at estimated fair value.
(d) Formerly known as Broadwing Inc.
See accompanying notes to financial statements
and independent accountants' review report.
[ 10 ]
NOTES TO FINANCIAL STATEMENTS -- (unaudited)
1. Significant Accounting Policies -- The Corporation is registered under
the Investment Company Act of 1940, as amended, as a non-diversified, closed-end
management investment company. The following is a summary of the significant
accounting policies consistently followed by the Corporation in the preparation
of its financial statements. The policies are in conformity with accounting
principles generally accepted in the United States of America.
Security Valuation -- Securities are valued at the last sale price or, if
unavailable, at the closing bid price. Corporate discount notes are
valued at amortized cost, which approximates market value. Securities
for which no ready market exists, including The Plymouth Rock Company,
Inc. Class A Common Stock, are valued at estimated fair value by the
Board of Directors.
Federal Income Taxes -- It is the Corporation's policy to meet the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to its
stockholders. Therefore, no Federal income taxes have been accrued.
Use of Estimates -- The preparation of the financial statements in
accordance with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions
that affect the amounts reported. Actual results could differ from those
estimates.
Other -- Security transactions are accounted for on the date the
securities are purchased or sold, and cost of securities sold is
determined by specific identification. Dividend income and distributions
to stockholders are recorded on the ex-dividend date.
2. Common Stock -- The Corporation repurchased 212,300 shares of its
Common Stock in the first six months of 2003 at an average price of $16.84 per
share, representing an average discount from net asset value of 14.1%. It 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 the
stockholders. Purchases will only be made at less than net asset value per
share, thereby increasing the net asset value of shares held by the remaining
stockholders. Shares so acquired may be held as treasury stock, available for
optional stock distributions, or may be retired.
3. Investment Transactions -- The aggregate cost of securities purchased
and the aggregate proceeds of securities sold during the six months ended June
30, 2003 (excluding short-term investments), were $32,932,279 and $33,493,271,
respectively.
As of June 30, 2003, based on cost for Federal income tax purposes, the
aggregate gross unrealized appreciation and depreciation for all securities were
$191,247,467 and $23,162,939, respectively.
4. Operating Expenses -- The aggregate remuneration paid during the six
months ended June 30, 2003 to officers and directors amounted to $529,500, of
which $51,000 was paid as fees to directors who were not officers. Benefits to
employees are provided through a profit sharing retirement plan. Contributions
to the plan are made at the discretion of the Board of Directors, and each
participant's benefits vest after three years. No contributions were made to the
plan for the six months ended June 30, 2003.
[ 11 ]
NOTES TO FINANCIAL STATEMENTS -- continued (unaudited)
5. Affiliates-- The Plymouth Rock Company, Inc. and Transport Corporation
of America, Inc. are affiliates as defined in the Investment Company Act of
1940. The Corporation received dividends of $461,300 from affiliates during the
six months ended June 30, 2003. Unrealized appreciation related to affiliates
increased by $10,286,942 for the six months ended June 30, 2003 to $51,439,865.
6. Restricted Securities -- The Corporation from time to time invests in
securities the resale of which is restricted. On June 30, 2003 such investments
had an aggregate value of $52,082,400, which was equal to 12.3% of the
Corporation's net assets. Investments in restricted securities at June 30, 2003,
including acquisition dates and cost, were:
Company Shares Security Date Purchased Cost
---------------------------------- ---------- ------------------- -------------- ----------
Grumman Hill Investments, L.P. Limited Partnership 9/11/85 $ 18,162
Interest
The Plymouth Rock 70,000 Class A Common 12/15/82 1,500,000
Company, Inc. Stock 6/9/84 699,986
The Corporation does not have the right to demand registration of the
restricted securities. Unrealized appreciation related to restricted securities
increased by $9,907,885 for the six months ended June 30, 2003 to $49,864,252.
[ 12 ]
FINANCIAL HIGHLIGHTS
Six Mos.
Ended
June 30, 2003
(Unaudited) 2002 2001 2000 1999 1998
------------- ----------- ----------- ----------- ----------- -----------
Per Share Operating Performance
Net asset value, beginning of period ............ $ 18.72 $ 28.54 $ 32.94 $ 35.05 $ 31.43 $ 29.97
Net investment income* .......................... .07 .14 .18 .32 .30 .34
Net realized and unrealized gain (loss)
on securities ................................. 3.39 (8.71) (2.78) 1.92 5.96 3.11
----------- ----------- ----------- ----------- ----------- -----------
Total from investment
operations .............................. 3.46 (8.57) (2.60) 2.24 6.26 3.45
Less:
Dividends from net investment income**
To Preference Stockholders .................. -- -- -- -- .04 .05
To Common Stockholders ...................... .01 .14 .22 .32 .26 .29
Distributions from capital gains**
To Common Stockholders ...................... .11 1.11 1.03 4.03 2.34 1.65
Return of Capital**
To Common Stockholders ...................... -- -- .55 -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total distributions ....................... .12 1.25 1.80 4.35 2.64 1.99
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period .................. $ 22.06 $ 18.72 $ 28.54 $ 32.94 $ 35.05 $ 31.43
=========== =========== =========== =========== =========== ===========
Per share market value,
end of period ................................. $ 18.92 $ 16.28 $ 25.31 $ 28.25 $ 27.25 $ 24.38
Total investment return,
market(%) ..................................... 15.66+ (31.23) (2.42) 17.75 22.96 (11.57)
Total investment return, NAV(%) ................. 18.48+ (29.43) (6.54) 7.02 31.79 13.75
Ratios/Supplemental Data:
Net assets, end of period(000) .................. $ 421,973 $ 361,943 $ 539,839 $ 596,289 $ 590,656 $ 476,464
Ratio of expenses to average net
assets for Common(%) .......................... .53++ .50 .45 .38 .45 .51
Ratio of net investment income to
average net assets for
Common(%) ..................................... .58++ .57 .60 .83 .89 1.09
Portfolio turnover rate(%) ...................... 10.11+ 19.50 10.32 13.54 12.06 6.21
----------
* Per-share data are based on the average number of Common Shares
outstanding during the period.
** Computed on the basis of the Corporation's status as a "regulated
investment company" for Federal income tax purposes.
+ Not annualized.
++ Annualized, not necessarily indicative of full year ratio.
See accompanying notes to financial statements
and independent accountants' review report.
[ 13 ]
--------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS' REVIEW REPORT
TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF
CENTRAL SECURITIES CORPORATION
We have reviewed the accompanying statement of assets and liabilities,
including the statement of investments, of Central Securities Corporation as of
June 30, 2003, and the related statements of operations, changes in net assets
and financial highlights for the six-month period ended June 30, 2003. These
financial statements are the responsibility of the management of Central
Securities Corporation.
We have conducted our review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements referred to above for
them to be in conformity with accounting principles generally accepted in the
United States of America.
We have previously audited, in accordance with auditing standards
generally accepted in the United States of America, the statement of changes in
net assets for the year ended December 31, 2002, and financial highlights for
each of the five years in the period ended December 31, 2002, and in our report
dated January 29, 2003 we expressed an unqualified opinion on those statements.
KPMG LLP
New York, NY
July 23, 2003
--------------------------------------------------------------------------------
ANNUAL MEETING OF STOCKHOLDERS -- (unaudited)
The annual meeting of stockholders of the Corporation was held on March
12, 2003. At the meeting all of the directors of the Corporation were reelected
by the following vote of the holders of the Common Stock: Donald G. Calder,
18,115,246 shares in favor, 138,200 shares withheld; Jay R. Inglis, 18,103,684
shares in favor, 149,762 shares withheld; Dudley D. Johnson, 18,115,589 shares
in favor, 137,857 shares withheld; Wilmot H. Kidd, 17,871,283 shares in favor,
382,163 shares withheld; and C. Carter Walker, Jr., 18,114,354 shares in favor,
139,092 shares withheld.
In addition, the selection of KPMG LLP as independent auditors of the
Corporation for the year 2003 was ratified by the following vote of the holders
of the Common Stock: 18,159,452 shares in favor, 45,646 shares against, 48,241
shares abstaining.
[ 14 ]
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
National Marine Underwriters, Inc.
New York, NY
C. CARTER WALKER, JR.
Washington, CT
OFFICERS
WILMOT H. KIDD, President
CHARLES N. EDGERTON, Vice President and Treasurer
MARLENE A. KRUMHOLZ, Secretary
OFFICE
375 Park Avenue, New York, NY 10152
212-688-3011
866-593-2507 (toll free)
www.centralsecurities.com
CUSTODIAN
UMB Bank, N. A.
P.O. Box 419226, Kansas City, MO 64141-6226
TRANSFER AGENT AND REGISTRAR
EquiServe Trust Company
P.O. Box 43069, Providence, RI 02940-3069
781-575-2724 www.equiserve.com
INDEPENDENT AUDITORS
KPMG LLP
757 Third Avenue, New York, NY 10017
[ 15 ]
Item 2. Code of Ethics. N/A. Item is only applicable for annual reports for
periods ending on or after July 15, 2003.
Item 3. Audit Committee Financial Experts. N/A. Item is only applicable for
annual reports for periods ending on or after July 15, 2003.
Item 4. Principal Accountant Fees and Services. N/A. Item is only applicable for
annual reports for periods ending on or after December 15, 2003.
Item 5. Audit Committee of Listed Registrants. N/A. Item is only applicable for
annual reports for periods ending on or after January 15, 2004.
Item 6. [Reserved]
Item 7. Disclose Proxy Voting Policies and Procedures for Closed-End Management
Companies. N/A. Item is only applicable for annual reports for periods ending on
or after July 15, 2003.
Item 8. [Reserved]
Item 9. Controls and Procedures.
(a) The Principal Executive Officer and Principal Financial Officer of Central
Securities Corporation (the "Corporation") have concluded that the Corporation's
Disclosure Controls and Procedures (as defined in Rule 30a-2(c) under the
Investment Company Act of 1940) are effective based on their evaluation of the
Disclosure Controls and Procedures as of a date within 90 days of the filing
date of this report.
(b) There have been no significant changes in the Corporation's internal
controls or in other factors that could significantly affect these controls
subsequent to the date of their evaluation, including any corrective actions
with regard to significant deficiencies and material weaknesses.
Item 10. Exhibits. (a) Any code of ethics, or amendment thereto, that is the
subject of the disclosure required by Item 2, to the extent that the registrant
intends to satisfy the Item 2 requirements through filing of an exhibit. Not
applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act.
Attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto duly authorized.
Central Securities Corporation
By: /s/ Wilmot H. Kidd
----------------------------
Wilmot H. Kidd
President
August 4, 2003
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Date
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto duly authorized.
Central Securities Corporation
By: /s/ Charles N. Edgerton
----------------------------
Charles N. Edgerton
Treasurer
August 4, 2003
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Date