Form N-CSRS - Certified Shareholder Report, Semi-Annual
14 August 2024 - 3:49PM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
N-CSRS
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:
630
Fifth Avenue
Suite
820
New
York, New York 10111
Name
and address of agent for service:
Central
Securities Corporation
John C. Hill, Chief Executive Officer
630
Fifth Avenue
Suite
820
New
York, New York 10111
Registrant’s
telephone number, including area code: 212-698-2020
Date
of fiscal year end: December 31, 2024
Date
of reporting period: June 30, 2024
Item
1(a). Reports to Stockholders.
CENTRAL SECURITIES CORPORATION
SEMI-ANNUAL REPORT
JUNE 30, 2024
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)
25-YEAR HISTORICAL DATA
|
|
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|
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|
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|
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Per Share of Common Stock
|
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|
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|
|
|
|
Net
asset
value
|
|
Source of dividends
and distributions
|
|
Total
dividends
and
distributions
|
|
Unrealized
appreciation
of investments
at end of period
|
|
Year Ended
December 31,
|
|
Total
net assets
|
|
|
Ordinary
income*
|
|
Long-term
capital gains*
|
|
|
|
1998
|
|
$476,463,575
|
|
$31.43
|
|
|
|
|
|
|
|
$301,750,135
|
|
1999
|
|
590,655,679
|
|
35.05
|
|
$ .26
|
|
$ 2.34
|
|
$ 2.60
|
|
394,282,360
|
|
2000
|
|
596,289,086
|
|
32.94
|
|
.32
|
|
4.03
|
|
4.35
|
|
363,263,634
|
|
2001
|
|
539,839,060
|
|
28.54
|
|
.22
|
|
1.58
|
**
|
1.80
|
**
|
304,887,640
|
|
2002
|
|
361,942,568
|
|
18.72
|
|
.14
|
|
1.11
|
|
1.25
|
|
119,501,484
|
|
2003
|
|
478,959,218
|
|
24.32
|
|
.11
|
|
1.29
|
|
1.40
|
|
229,388,141
|
|
2004
|
|
529,468,675
|
|
26.44
|
|
.11
|
|
1.21
|
|
1.32
|
|
271,710,179
|
|
2005
|
|
573,979,905
|
|
27.65
|
|
.28
|
|
1.72
|
|
2.00
|
|
302,381,671
|
|
2006
|
|
617,167,026
|
|
30.05
|
|
.58
|
|
1.64
|
|
2.22
|
|
351,924,627
|
|
2007
|
|
644,822,724
|
|
30.15
|
|
.52
|
|
1.88
|
|
2.40
|
|
356,551,394
|
|
2008
|
|
397,353,061
|
|
17.79
|
|
.36
|
|
2.10
|
|
2.46
|
|
94,752,477
|
|
2009
|
|
504,029,743
|
|
22.32
|
|
.33
|
|
.32
|
|
.65
|
|
197,256,447
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|
2010
|
|
593,524,167
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|
26.06
|
|
.46
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|
.44
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|
.90
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|
281,081,168
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2011
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|
574,187,941
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|
24.96
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|
.43
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|
.57
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|
1.00
|
|
255,654,966
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|
2012
|
|
569,465,087
|
|
24.53
|
|
.51
|
|
.43
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|
.94
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|
247,684,116
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|
2013
|
|
648,261,868
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|
26.78
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|
.12
|
|
3.58
|
|
3.70
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|
305,978,151
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|
2014
|
|
649,760,644
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|
26.18
|
|
.16
|
|
1.59
|
|
1.75
|
|
293,810,819
|
|
2015
|
|
582,870,527
|
|
23.53
|
|
.12
|
|
1.86
|
|
1.98
|
|
229,473,007
|
|
2016
|
|
674,683,352
|
|
27.12
|
|
.30
|
|
.68
|
|
.98
|
|
318,524,775
|
|
2017
|
|
826,331,789
|
|
32.86
|
|
.28
|
|
.72
|
|
1.00
|
|
460,088,116
|
|
2018
|
|
765,342,588
|
|
30.02
|
|
.56
|
|
.89
|
|
1.45
|
|
392,947,674
|
|
2019
|
|
994,595,051
|
|
38.42
|
|
.57
|
|
.78
|
|
1.35
|
|
607,489,748
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|
2020
|
|
1,036,336,494
|
|
39.49
|
|
.75
|
|
.95
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|
1.70
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|
638,120,894
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|
2021
|
|
1,332,590,581
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|
48.87
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|
.92
|
|
2.83
|
|
3.75
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|
894,323,472
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|
2022
|
|
1,132,835,676
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|
40.48
|
|
.55
|
|
1.90
|
|
2.45
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|
668,155,780
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|
2023
|
|
1,319,864,836
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|
46.49
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|
.50
|
|
1.35
|
|
1.85
|
|
841,232,972
|
|
Six mos. to
June 30, 2024***
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1,492,593,177
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|
52.58
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|
.08
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|
.12
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|
.20
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|
981,119,062
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Total dividends and distributions***
|
$9.54
|
|
$37.91
|
|
$47.45
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|
*Computed on the basis of the Corporation’s status as a “regulated investment company” for Federal income tax purposes. Dividends from ordinary income include short-term capital gains.
**Includes non-taxable return of capital of $.55.
***Unaudited.
The Common Stock is listed on the NYSE American under the symbol CET. On June 28, 2024 (the last day of the trading period), the closing market price was $44.02 per share.
To the Stockholders of
Central Securities Corporation:
Financial statements for the six months ended June 30, 2024 reviewed by our independent registered public accounting firm and other pertinent information are submitted herewith.
Comparative net assets are as follows:
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June 30,
2024
(Unaudited)
|
|
December 31,
2023
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|
Net assets
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|
$1,492,593,177
|
|
$1,319,864,836
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Net assets per share of Common Stock
|
|
52.58
|
|
46.49
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Shares of Common Stock outstanding
|
|
28,387,828
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|
28,387,828
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Comparative operating results are as follows:
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Six months ended June 30,
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2024
(Unaudited)
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2023
(Unaudited)
|
|
|
Net investment income
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$9,779,794
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|
$8,338,893
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Per average share of Common Stock outstanding
|
|
.34
|
|
.30
|
|
|
Net realized gain from investment transactions
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|
28,740,023
|
|
21,623,919
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|
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Increase in net unrealized appreciation of investments
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|
139,886,090
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|
79,130,330
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|
|
Increase in net assets resulting from operations
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|
178,405,907
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|
109,093,142
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|
A distribution of $.20 per share was paid on June 26, 2024 to stockholders of record as of June 14, 2024. Stockholders will be sent a notice concerning the taxability of all 2024 distributions in early 2025.
During
the first six months of 2024, the Corporation (“Central”) 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.
Lawrence P. Vogel, Vice President and Treasurer of the Corporation, retired at the end of May 2024 after fourteen years of service. We will miss his wise judgment and counsel, and we wish him well in his retirement. Joseph T. Malone joined Central in April 2024 and was elected Vice President and Treasurer upon Larry’s retirement. Joe has extensive experience in the investment company industry.
Stockholder inquiries are welcome.
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John C. Hill
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Wilmot H. Kidd
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Andrew J. O’Neill
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630 Fifth Avenue
New York, NY 10111
July 26, 2024
TEN LARGEST INVESTMENTS
(excluding short-term investments)
June 30, 2024
(Unaudited)
|
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|
|
Cost
|
|
Value
|
|
Percent of Net Assets
|
|
Year First Acquired
|
|
|
(millions)
|
|
|
|
|
|
The Plymouth Rock Company, Inc. Class A
|
$ 0.7
|
|
$361.0
|
|
24.2%
|
|
1982
|
|
Analog Devices, Inc.
|
3.0
|
|
91.3
|
|
6.1
|
|
1987
|
|
Progressive Corporation
|
25.3
|
|
89.3
|
|
6.0
|
|
2015
|
|
Alphabet Inc. Class A
|
21.8
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|
82.0
|
|
5.5
|
|
2015
|
|
Motorola Solutions, Inc.
|
5.9
|
|
57.9
|
|
3.9
|
|
2000
|
|
The Charles Schwab Corporation
|
25.7
|
|
51.6
|
|
3.5
|
|
2016
|
|
Meta Platforms, Inc. Class A
|
30.3
|
|
50.4
|
|
3.4
|
|
2021
|
|
American Express Company
|
16.8
|
|
46.3
|
|
3.1
|
|
2015
|
|
Amazon.com, Inc.
|
3.7
|
|
43.5
|
|
2.9
|
|
2014
|
|
Capital One Financial Corporation
|
17.6
|
|
41.5
|
|
2.8
|
|
2013
|
PRINCIPAL PORTFOLIO CHANGES
April 1 to June 30, 2024
(Common Stock unless specified otherwise)
(Unaudited)
|
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|
|
|
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|
|
Purchased
|
|
Sold
|
|
Held
June 30, 2024
|
|
AerCap Holdings N.V.
|
|
|
|
75,000
|
|
275,000
|
|
Arthur J. Gallagher & Co.
|
|
105,000
|
|
|
|
105,000
|
|
Ashtead Group plc - ADR
|
|
40,000
|
|
|
|
85,000
|
|
Hess Corporation
|
|
|
|
35,000
|
|
275,000
|
|
Merck & Co., Inc.
|
|
|
|
40,000
|
|
160,000
|
|
Progressive Corporation
|
|
|
|
5,000
|
|
430,000
|
|
Roche Holding AG - ADR
|
|
|
|
300,000
|
|
—
|
|
Roper Technologies, Inc.
|
|
1,000
|
|
|
|
55,000
|
|
Rayonier Inc.
|
|
150,000
|
|
|
|
1,150,000
|
|
Teledyne Technologies Incorporated
|
|
12,164
|
|
|
|
60,000
|
|
Visa Inc. Class A
|
|
10,000
|
|
|
|
75,000
|
DIVERSIFICATION OF INVESTMENTS
June 30, 2024
(Unaudited)
|
|
|
|
|
|
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|
|
Issues
|
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Cost
|
|
Value
|
|
Percent of Net Assets
|
|
|
|
|
|
|
June 30, 2024
|
|
December 31, 2023
|
|
Common Stocks:
|
|
|
|
|
|
|
|
|
|
|
|
Insurance Underwriters
|
|
2
|
|
$26,001,414
|
|
$450,300,100
|
|
30.2%
|
|
28.3%
|
|
Diversified Financial
|
|
4
|
|
78,412,092
|
|
159,113,250
|
|
10.7
|
|
11.2
|
|
Technology Hardware and Equipment
|
|
4
|
|
56,879,259
|
|
137,520,300
|
|
9.2
|
|
8.9
|
|
Communication Services
|
|
2
|
|
52,146,917
|
|
132,389,500
|
|
8.9
|
|
7.7
|
|
Semiconductor
|
|
3
|
|
10,958,276
|
|
107,561,200
|
|
7.2
|
|
8.7
|
|
Software and Services
|
|
2
|
|
5,318,581
|
|
66,757,300
|
|
4.5
|
|
4.5
|
|
Retailing
|
|
2
|
|
20,741,084
|
|
64,845,450
|
|
4.3
|
|
3.9
|
|
Diversified Industrial
|
|
3
|
|
40,714,027
|
|
61,585,950
|
|
4.1
|
|
3.1
|
|
Insurance Brokers
|
|
2
|
|
43,706,871
|
|
56,585,550
|
|
3.8
|
|
3.3
|
|
Health Care
|
|
3
|
|
28,316,168
|
|
47,523,750
|
|
3.2
|
|
4.7
|
|
Energy
|
|
1
|
|
11,141,582
|
|
40,568,000
|
|
2.7
|
|
4.0
|
|
Banks
|
|
1
|
|
10,000,771
|
|
40,452,000
|
|
2.7
|
|
2.6
|
|
Real Estate
|
|
1
|
|
33,199,746
|
|
33,453,500
|
|
2.2
|
|
2.7
|
|
Short-Term Investments
|
|
3
|
|
93,441,363
|
|
93,441,363
|
|
6.3
|
|
6.2
|
STATEMENT OF INVESTMENTS
June 30, 2024
(Unaudited)
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Value
|
|
COMMON STOCKS 93.7%
|
|
|
|
Banks 2.7%
|
|
|
|
200,000
|
|
|
JPMorgan Chase & Co.
|
|
$40,452,000
|
|
|
|
|
|
|
|
|
|
|
Communications Services 8.9%
|
|
|
|
450,000
|
|
|
Alphabet Inc. Class A
|
|
81,967,500
|
|
100,000
|
|
|
Meta Platforms, Inc. Class A
|
|
50,422,000
|
|
|
|
|
|
|
132,389,500
|
|
|
|
|
|
|
|
|
|
|
Diversified Financial 10.7%
|
|
|
|
200,000
|
|
|
American Express Company
|
|
46,310,000
|
|
300,000
|
|
|
Capital One Financial Corporation
|
|
41,535,000
|
|
700,000
|
|
|
The Charles Schwab Corporation
|
|
51,583,000
|
|
75,000
|
|
|
Visa Inc. Class A
|
|
19,685,250
|
|
|
|
|
|
|
159,113,250
|
|
|
|
|
|
|
|
|
|
|
Diversified Industrial 4.1%
|
|
|
|
275,000
|
|
|
AerCap Holdings N.V.
|
|
25,630,000
|
|
85,000
|
|
|
Ashtead Group plc ADR
|
|
22,751,950
|
|
200,000
|
|
|
Brady Corporation Class A
|
|
13,204,000
|
|
|
|
|
|
|
61,585,950
|
|
|
|
|
|
|
|
|
|
|
Energy 2.7%
|
|
|
|
275,000
|
|
|
Hess Corporation
|
|
40,568,000
|
|
|
|
|
|
|
|
|
|
|
Health Care 3.2%
|
|
|
|
90,000
|
|
|
Johnson & Johnson
|
|
13,154,400
|
|
185,000
|
|
|
Medtronic plc
|
|
14,561,350
|
|
160,000
|
|
|
Merck & Co., Inc.
|
|
19,808,000
|
|
|
|
|
|
|
47,523,750
|
|
|
|
|
|
|
|
|
|
|
Insurance Brokers 3.8%
|
|
|
|
100,000
|
|
|
Aon plc Class A
|
|
29,358,000
|
|
105,000
|
|
|
Arthur J. Gallagher & Co.
|
|
27,227,550
|
|
|
|
|
|
|
56,585,550
|
|
|
|
|
|
|
|
|
|
|
Insurance Underwriters 30.2%
|
|
|
|
28,424
|
|
|
The Plymouth Rock Company Class A (b)(c)
|
|
360,984,800
|
|
430,000
|
|
|
Progressive Corporation
|
|
89,315,300
|
|
|
|
|
|
|
450,300,100
|
|
|
|
|
|
|
|
|
|
|
Real Estate 2.2%
|
|
|
|
1,150,000
|
|
|
Rayonier Inc.
|
|
33,453,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Value
|
|
|
|
Retailing 4.3%
|
|
|
|
225,000
|
|
|
Amazon.com, Inc. (a)
|
|
$43,481,250
|
|
13,000
|
|
|
Mercadolibre, Inc. (a)
|
|
21,364,200
|
|
|
|
|
|
|
64,845,450
|
|
|
|
|
|
|
|
|
|
|
Semiconductor 7.2%
|
|
|
|
400,000
|
|
|
Analog Devices, Inc.
|
|
91,304,000
|
|
400,000
|
|
|
Intel Corporation
|
|
12,388,000
|
|
170,000
|
|
|
Wolfspeed, Inc., Inc. (a)
|
|
3,869,200
|
|
|
|
|
|
|
107,561,200
|
|
|
|
|
|
|
|
|
|
|
Software and Services 4.5%
|
|
|
|
80,000
|
|
|
Microsoft Corporation
|
|
35,756,000
|
|
55,000
|
|
|
Roper Technologies, Inc.
|
|
31,001,300
|
|
|
|
|
|
|
66,757,300
|
|
|
|
|
|
|
|
|
|
|
Technology Hardware and Equipment 9.2%
|
|
|
|
400,000
|
|
|
Coherent Corp. (a)
|
|
28,984,000
|
|
200,000
|
|
|
Keysight Technologies, Inc. (a)
|
|
27,350,000
|
|
150,000
|
|
|
Motorola Solutions, Inc.
|
|
57,907,500
|
|
60,000
|
|
|
Teledyne Technologies Incorporated (a)
|
|
23,278,800
|
|
|
|
|
|
|
137,520,300
|
|
|
|
|
|
|
|
|
|
|
|
Total Common Stocks (cost $417,536,788)
|
|
1,398,655,850
|
|
|
|
|
|
|
|
|
SHORT-TERM INVESTMENTS 6.3%
|
|
|
|
|
|
|
|
|
|
|
Money Market Fund 2.2%
|
|
|
|
33,510,672
|
|
|
Fidelity Investments Money Market Fund
|
|
|
|
|
|
|
Treasury Only Portfolio Class I 5.19%
|
|
33,510,672
|
|
|
|
|
|
|
|
|
Principal
|
|
U.S. Treasury Bills 4.1%
|
|
|
|
$60,000,000
|
|
|
U.S. Treasury Bills 5.251% - 5.292% due 7/2/24 - 7/16/24 (d)
|
|
59,930,691
|
|
|
|
|
|
|
|
|
|
|
|
Total Short-Term Investments (cost $93,441,363)
|
|
93,441,363
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments (cost $510,978,151) (100.0%)
|
|
1,492,097,213
|
|
|
|
|
|
|
|
|
|
|
|
Cash, receivables and other assets less liabilities (0.0%)
|
|
495,964
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets (100%)
|
|
$1,492,593,177
|
(a)Non-dividend paying.
(b)Affiliate as defined in the Investment Company Act of 1940 and restricted. See Note 5 and Note 6.
(c)Value determined based on Level 3 significant unobserable inputs. See Note 2.
(d)Value determined based on Level 2 inputs. See Note 2.
See accompanying notes to statement of investments.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2024
(Unaudited)
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
Securities of unaffiliated companies (cost $416,826,188) (Note 2)
|
|
$1,037,671,050
|
|
|
|
|
Securities of affiliated companies (cost $710,600) (Notes 2, 5 and 6)
|
|
360,984,800
|
|
|
|
|
Short-term investments (cost $93,441,363) (Note 2)
|
|
93,441,363
|
|
$1,492,097,213
|
|
|
Cash, receivables and other assets:
|
|
|
|
|
|
|
Cash
|
|
433,225
|
|
|
|
|
Dividends receivable
|
|
673,204
|
|
|
|
|
Leasehold improvements and office equipment, net
|
|
1,319,152
|
|
|
|
|
Operating lease right-of-use asset
|
|
2,433,739
|
|
|
|
|
Other assets
|
|
114,927
|
|
4,974,247
|
|
|
Total Assets
|
|
|
|
1,497,071,460
|
|
|
Liabilities:
|
|
|
|
|
|
|
Accrued expenses and other liabilities
|
|
1,382,390
|
|
|
|
|
Operating lease liability
|
|
3,095,893
|
|
|
|
|
Total Liabilities
|
|
|
|
4,478,283
|
|
|
Net Assets
|
|
|
|
$1,492,593,177
|
|
|
Net Assets are represented by:
|
|
|
|
|
|
|
Common Stock $1 par value: authorized 40,000,000 shares;
issued 28,387,828 (Note 3)
|
|
|
|
$28,387,828
|
|
|
Surplus:
|
|
|
|
|
|
|
Paid-in
|
|
$446,050,352
|
|
|
|
|
Total distributable earnings, including net unrealized
appreciation of investments
|
|
1,018,154,997
|
|
1,464,205,349
|
|
|
Net Assets
|
|
|
|
$1,492,593,177
|
|
|
Net Asset Value Per Common Share (28,387,828 shares outstanding)
|
|
|
|
$52.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
|
STATEMENT OF OPERATIONS
For the six months ended June 30, 2024
(Unaudited)
|
|
|
|
|
|
|
|
Investment Income
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
Dividends from unaffiliated companies
(net of foreign withholding taxes of $141,685)
|
|
$6,467,458
|
|
|
|
|
Dividends from affiliated companies (Note 5)
|
|
5,477,589
|
|
|
|
|
Interest
|
|
1,788,514
|
|
$13,733,561
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
Investment research
|
|
1,196,221
|
|
|
|
|
Administration and operations
|
|
1,215,119
|
|
|
|
|
Consulting fees
|
|
450,000
|
|
|
|
|
Occupancy and office operating expenses
|
|
389,249
|
|
|
|
|
Directors’ fees
|
|
236,000
|
|
|
|
|
Information services and software
|
|
143,705
|
|
|
|
|
Stockholder communications and meetings
|
|
66,231
|
|
|
|
|
Legal, auditing and tax preparation fees
|
|
51,440
|
|
|
|
|
Franchise and miscellaneous taxes
|
|
50,405
|
|
|
|
|
Transfer agent, registrar and custodian fees and expenses
|
|
37,292
|
|
|
|
|
Other
|
|
118,105
|
|
3,953,767
|
|
|
Net investment income
|
|
|
|
9,779,794
|
|
|
|
|
|
|
|
|
|
Net Realized and Unrealized Gain (Loss) on Investments
|
|
|
|
|
|
|
Net realized gain from unaffiliated companies
|
|
28,740,023
|
|
|
|
|
Increase in net unrealized appreciation of investments
in unaffiliated companies
|
|
83,038,090
|
|
|
|
|
Increase in net unrealized appreciation of investments
in affiliated companies (Note 5)
|
|
56,848,000
|
|
|
|
|
Net gain on investments
|
|
|
|
168,626,113
|
|
|
Increase in Net Assets Resulting from Operations
|
|
|
|
$178,405,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
|
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended June 30, 2024
and the year ended December 31, 2023
|
|
|
|
|
|
|
|
|
|
Six months
ended
June 30, 2024
(Unaudited)
|
|
Year ended
December 31,
2023
|
|
|
From Operations:
|
|
|
|
|
|
|
Net investment income
|
|
$9,779,794
|
|
$14,398,068
|
|
|
Net realized gain from investment transactions
|
|
28,740,023
|
|
36,160,458
|
|
|
Increase in net unrealized appreciation of investments
|
|
139,886,090
|
|
173,077,192
|
|
|
Increase in net assets resulting from operations
|
|
178,405,907
|
|
223,635,718
|
|
|
Distributions To Stockholders:
|
|
|
|
|
|
|
From distributable earnings
|
|
(5,677,566
|
)
|
(51,505,653
|
)
|
|
From Capital Share Transactions: (Notes 3 and 8)
|
|
|
|
|
|
|
Distribution to stockholders reinvested in Common Stock
|
|
—
|
|
20,731,575
|
|
|
Cost of treasury stock purchased
|
|
—
|
|
(5,832,480
|
)
|
|
Increase in net assets from capital share transactions
|
|
—
|
|
14,899,095
|
|
|
Total increase in net assets
|
|
172,728,341
|
|
187,029,160
|
|
|
Net Assets:
|
|
|
|
|
|
|
Beginning of period
|
|
1,319,864,836
|
|
1,132,835,676
|
|
|
End of period
|
|
$1,492,593,177
|
|
$1,319,864,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
|
STATEMENT OF CASH FLOWS
For the six months ended June 30, 2024
(Unaudited)
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
Increase in net assets from operations
|
|
|
|
$178,405,907
|
|
|
Adjustments to increase in net assets from operations:
|
|
|
|
|
|
|
Proceeds from securities sold
|
|
$83,663,408
|
|
|
|
|
Purchases of securities
|
|
(77,815,625
|
)
|
|
|
|
Net increase in short-term investments
|
|
(11,904,134
|
)
|
|
|
|
Net realized gain from investments
|
|
(28,740,023
|
)
|
|
|
|
Increase in net unrealized appreciation of investments
|
|
(139,886,090
|
)
|
|
|
|
Non-cash operating lease expense
|
|
36,504
|
|
|
|
|
Depreciation and amortization
|
|
43,901
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Decrease in dividends receivable
|
|
281,439
|
|
|
|
|
Decrease in other assets
|
|
7,831
|
|
|
|
|
Increase in accrued expenses and other liabilities
|
|
1,135,943
|
|
|
|
|
Total adjustments
|
|
|
|
(173,176,846
|
)
|
|
Net cash provided by operating activities
|
|
|
|
5,229,061
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
Cash paid for leasehold improvements, furniture and equipment
|
|
(13,909
|
)
|
|
|
|
Cash used in investing activities
|
|
|
|
(13,909
|
)
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
Dividends and distributions paid
|
|
(5,677,566
|
)
|
|
|
|
Cash used in financing activities
|
|
|
|
(5,677,566
|
)
|
|
Net decrease in cash
|
|
|
|
(462,414
|
)
|
|
Cash at beginning of period
|
|
|
|
895,639
|
|
|
Cash at end of period
|
|
|
|
$433,225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to financial statements.
|
NOTES TO FINANCIAL STATEMENTS — (Unaudited)
1. Significant Accounting Policies—Central Securities Corporation (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. These policies are in conformity with U.S. generally accepted accounting principles applicable to U.S. investment companies.
Security Valuation—Marketable common stocks are valued at the last or closing sale price or, if unavailable, at the closing bid price at the valuation date. Investments in money market funds are valued at net asset value per share. Other short-term investments are valued at amortized cost, which approximates fair value. Securities for which no ready market exists are valued at estimated fair value pursuant to procedures adopted by the Board of Directors. The determination of fair value involves subjective judgments. As a result, using fair value to price a security may result in a price materially different from the price used by other investors or the price that may be realized upon the actual sale of the security.
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 and net capital gains to its stockholders. Management has analyzed positions taken on the Corporation’s tax returns and has determined that no provision for income taxes is required in the accompanying financial statements.
Use of Estimates—The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results may differ from those estimates.
Leases—The Corporation recognizes operating leases on its statement of assets and liabilities at the lease commencement date as (1) a liability representing its obligation to make lease payments over the lease term and (2) a corresponding right-of-use (“ROU”) asset for its right to use the underlying asset over the lease term. The lease liability is measured at the inception of the lease at the present value of the unpaid fixed and certain variable lease payments using the rate of interest the Corporation would have paid on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term and is