-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, K/wpdxfuUGgczTKH5H4253FkSbeLkXYHcXidVvmq94Y827e8fTTRyzWyUzN35KcO fZmJcJ1ifmIHR7cO2GnL8w== 0000030167-03-000002.txt : 20030131 0000030167-03-000002.hdr.sgml : 20030131 20030131144343 ACCESSION NUMBER: 0000030167-03-000002 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021130 FILED AS OF DATE: 20030131 EFFECTIVENESS DATE: 20030131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS PREMIER THIRD CENTURY FUND INC CENTRAL INDEX KEY: 0000030167 IRS NUMBER: 132691318 STATE OF INCORPORATION: MD FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-02192 FILM NUMBER: 03534317 BUSINESS ADDRESS: STREET 1: THE DREYFUS CORPORATION STREET 2: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2129226883 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: DREYFUS THIRD CENTURY FUND INC DATE OF NAME CHANGE: 19920703 N-30D 1 pn30d-035.txt SEMI-ANNUAL REPORT The Dreyfus Premier Third Century Fund, Inc. SEMIANNUAL REPORT November 30, 2002 You, Your Advisor And Dreyfus A Mellon Financial Company The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund. Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value Contents THE FUND - -------------------------------------------------- 2 Letter from the Chairman 3 Discussion of Fund Performance 6 Statement of Investments 9 Statement of Assets and Liabilities 10 Statement of Operations 11 Statement of Changes in Net Assets 14 Financial Highlights 20 Notes to Financial Statements FOR MORE INFORMATION - --------------------------------------------------------------------------- Back Cover The Fund The Dreyfus Premier Third Century Fund, Inc. LETTER FROM THE CHAIRMAN Dear Shareholder: We present this semiannual report for The Dreyfus Premier Third Century Fund, Inc., covering the six-month period from June 1, 2002 through November 30, 2002. Inside, you'll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund's portfolio managers, L. Emerson Tuttle and Paul Hilton. Paul Hilton was named a primary portfolio manager in July 2002 with respect to the fund's areas of social concern. As we approach year-end, it appears likely that 2002 will be the third consecutive year of negative returns for the U.S. stock market. Investor confidence has been shaken, and understandably so, in the aftermath of the speculative bubble of the late 90s and the 2001 recession. However, we believe that this is not the time to give up on equities. In fact, the current market environment may provide opportunities to invest when prices are low and stocks are, in effect, "on sale." The U.S. economy appears to be gathering momentum, supported by strong consumer spending and potential improvement in the corporate sector. The deleveraging of corporate debt, which occurred throughout 2002 as companies adjusted accounting procedures and lenders tightened credit policies, seems to be proceeding in an orderly fashion. And the stock market, which had declined sharply in the second and third quarters of this year, has rallied overall in the fourth quarter. In our view, these signs point to a likely rebound for equities in 2003. Of course, risks remain, including those presented by terrorism and heightened tensions in the Middle East. Managing the effects of such risks is an important reason for staying in close touch with your financial advisor, to ensure that your portfolio reflects your investment needs, long-term goals and attitudes toward risk. Thank you for your continued confidence and support. Sincerely, Stephen E. Canter Chairman and Chief Executive Officer The Dreyfus Corporation December 16, 2002 DISCUSSION OF FUND PERFORMANCE L. Emerson Tuttle and Paul Hilton, Portfolio Managers How did The Dreyfus Premier Third Century Fund, Inc. perform relative to its benchmark? For the six-month period ended November 30, 2002, the fund produced total returns of -16.77% for Class A shares, -17.13% for Class B shares, -17.13% for Class C shares, -16.62% for Class R shares, -16.84% for Class T shares and - -16.67% for Class Z shares.(1) In comparison, the fund's benchmark, the Standard & Poor's 500 Composite Stock Price Index ("S&P 500 Index"), produced a total return of -11.49% for the same period.(2) We attribute the fund's underperformance relative to the S&P 500 Index to several poor stock selections within the health care group as well as limited exposure to telecommunications stocks, which performed relatively well. What is the fund's investment approach? The fund seeks to provide capital growth, with current income as a secondary objective. The fund looks for growth-oriented companies that generally exhibit three characteristics: improving profitability measurements, a pattern of consistent earnings and reasonable prices. To pursue these goals, the fund invests primarily in the common stocks of companies that, in the opinion of the fund's management, meet traditional investment standards while simultaneously conducting their businesses in a manner that contributes to the enhancement of the quality of life in America. What other factors influenced the fund's performance? The reporting period has been a difficult period for stocks in general, primarily due to the effects of a weak economy and anemic corporate spending. In addition, the health care group represented one of the primary detractors from the fund's relative performance, mainly The Fund DISCUSSION OF FUND PERFORMANCE (CONTINUED) because of some poor stock selections and limited exposure to better performing pharmaceutical companies. Sometimes it's not where a fund is invested that hurts performance, but where it's NOT invested. Such was the case with telecommunications stocks during the reporting period. In the technology sector, "pure" wireless telecommunications companies produced the highest returns during the rally in October and November; unfortunately, the fund held few of those stocks. Instead, we generally focused on regional telecom companies that have wireless capabilities as a secondary business. The fund's technology stocks fared much better during the recent rally. While both the fund and the benchmark, the S&P 500 Index, reported negative returns within the technology group for the reporting period overall, the fund was able to perform modestly better than the S&P 500 Index due to our stock selection strategy. In fact, three of the fund's top-10 performing stocks for the reporting period were technology companies: International Business Machines, Microsoft and Dell Computer. What is the fund's current strategy? As of the end of the reporting period, we have modestly reduced the fund's exposure to technology, a traditional growth area, and have redeployed those assets to the more defensive consumer discretionary, industrials and basic materials groups. We also have modestly increased the fund's exposure to energy stocks that we believe may benefit from high energy prices resulting from continued instability in the Middle East. We continue to maintain a neutral posture relative to most industry groups within the S&P 500 Index. Although we feel the economy will continue to grow, we are concerned about high levels of consumer debt and low levels of capital spending, and therefore have positioned the portfolio with a more defensive posture. Can you give us an update on the fund's socially responsible investing activities? We would like to take this opportunity to review with you some of our social screening methods. We eliminate companies with major concerns in the following areas: environment, worker safety, product safety and employment diversity. In certain industries that have historically poor environmental performance (such as oil and gas companies), we invest in only those firms that we believe have the best relative environmental performance, rather than eliminate these industry groups altogether. We will not invest in companies that manufacture tobacco products. If a company violates our social criteria, it is removed from the fund, consistent with the best interests of the fund. However, sometimes a company faces a specific social issue that we believe can best be resolved through a dialogue with company management. In many cases, this results in a timely resolution of the problem. In response to mounting concerns about global climate change, we are encouraging companies in our fund to focus on energy efficiency at their facilities. According to Green Strategies, Inc., the generation of electricity is responsible for 33% of greenhouse gas emissions in the U.S., the greatest source of any industrial sector. Investment in building energy efficiency can achieve a 35% to 50% reduction in energy consumption, thus reducing greenhouse gases and energy costs. One simple action companies can take is to join the EPA's Energy Star program. Through Energy Star, companies voluntarily partner with the EPA to evaluate and improve their energy efficiency. The end result is significant energy cost reductions and an enhanced environmental exposure. Many of our companies are already partners. We hope our efforts will encourage more to take this important step. You may visit www.energystar.gov for further information about the Energy Star program. December 16, 2002 (1) TOTAL RETURN INCLUDES REINVESTMENT OF DIVIDENDS AND ANY CAPITAL GAINS PAID, AND DOES NOT TAKE INTO CONSIDERATION THE MAXIMUM INITIAL SALES CHARGES IN THE CASE OF CLASS A AND CLASS T SHARES, OR THE APPLICABLE CONTINGENT DEFERRED SALES CHARGES IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. SHARE PRICE AND INVESTMENT RETURN FLUCTUATE SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. (2) SOURCE: LIPPER INC. -- REFLECTS REINVESTMENT OF DIVIDENDS AND, WHERE APPLICABLE, CAPITAL GAIN DISTRIBUTIONS. THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX IS A WIDELY ACCEPTED, UNMANAGED INDEX OF U.S. STOCK MARKET PERFORMANCE. The Fund STATEMENT OF INVESTMENTS November 30, 2002 (Unaudited) COMMON STOCKS--97.8% Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY--14.4% Clear Channel Communications 223,000 (a) 9,691,580 Gentex 272,000 (a) 8,162,720 Home Depot 525,400 13,881,068 Starwood Hotels & Resorts Worldwide 242,000 6,129,860 Tiffany & Co. 242,000 6,867,960 Univision Communications, Cl. A 525,000 (a) 16,873,500 Wal-Mart Stores 481,000 26,050,960 87,657,648 CONSUMER STAPLES--9.7% Anheuser-Busch Cos. 68,500 3,364,720 CVS 362,000 9,730,560 Coca-Cola 383,000 17,480,120 Colgate-Palmolive 393,000 20,196,270 PepsiCo 184,000 7,816,320 58,587,990 ENERGY--5.2% Anadarko Petroleum 144,800 6,834,560 Royal Dutch Petroleum (New York Shares), ADR 402,400 17,524,520 Weatherford International 180,100 (a) 7,265,234 31,624,314 FINANCIALS--18.1% ACE 406,000 13,844,600 American Express 376,000 14,637,680 American International Group 248,493 16,189,319 Bank of America 86,000 6,026,880 Citigroup 387,000 15,046,560 Fannie Mae 102,000 6,431,100 Fifth Third Bancorp 134,000 7,504,000 Lehman Brothers Holdings 114,000 6,999,600 Marsh & McLennan Cos. 241,000 11,375,200 State Street 242,000 10,890,000 Travelers Property Casualty, Cl. A 20,193 322,078 Travelers Property Casualty, Cl. B 41,489 663,824 109,930,841 HEALTH CARE--16.2% Amgen 124,000 (a) 5,852,800 Boston Scientific 223,000 (a) 9,366,000 COMMON STOCKS (CONTINUED) Shares Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (CONTINUED) Cardinal Health 136,000 8,369,440 Guidant 151,800 (a) 4,543,374 Johnson & Johnson 285,000 16,250,700 Laboratory Corporation of America Holdings 467,000 (a) 11,208,000 Medtronic 133,000 6,217,750 Merck & Co. 129,000 7,663,890 Pfizer 725,000 22,866,500 WellPoint Health Networks 94,700 (a) 6,234,101 98,572,555 INDUSTRIALS--9.6% Avery Dennison 99,000 6,379,560 Emerson Electric 148,000 7,718,200 First Data 327,000 11,327,280 Grainger (W.W.) 140,000 7,529,200 Illinois Tool Works 112,000 7,614,880 Tyco International 995,000 17,750,800 58,319,920 INFORMATION TECHNOLOGY--20.6% Analog Devices 114,000 (a) 3,498,660 Applied Materials 193,400 (a) 3,297,470 BEA Systems 549,000 (a) 6,060,411 Cisco Systems 815,000 (a) 12,159,800 Dell Computer 517,000 (a) 14,770,690 Flextronics International 806,000 (a) 8,874,060 Intel 602,000 12,569,760 International Business Machines 236,000 20,555,600 Linear Technology 217,600 7,230,848 Microsoft 508,000 (a) 29,372,560 QUALCOMM 163,000 (a) 6,718,860 125,108,719 MATERIALS--1.5% Praxair 150,000 8,850,000 TELECOMMUNICATION SERVICES--1.9% ALLTEL 83,000 4,571,640 CenturyTel 124,000 3,829,120 Verizon Communications 75,500 3,161,940 11,562,700 The Fund STATEMENT OF INVESTMENTS (Unaudited) (CONTINUED) COMMON STOCKS (CONTINUED) Shares Value ($) - ----------------------------------------------------------------------------------------------------------------------------------- UTILITIES--.6% Pinnacle West Capital 103,000 3,308,360 TOTAL COMMON STOCKS (cost $563,704,227) 593,523,047 - ------------------------------------------------------------------------------------------------------------------------------------ Principal SHORT-TERM INVESTMENTS--2.4% Amount ($) Value ($) - ------------------------------------------------------------------------------------------------------------------------------------ CERTIFICATES OF DEPOSIT--.0% Self Help Credit Union, 1.65%, 12/17/2002 100,000 100,000 U.S. TREASURY BILLS--2.4% 1.37%, 12/5/2002 60,000 59,994 1.56%, 12/26/2002 127,000 126,897 1.62%, 1/2/2003 1,884,000 1,882,097 1.18%, 2/6/2003 2,908,000 2,901,864 1.17%, 2/13/2003 6,752,000 6,736,201 1.18%, 2/20/2003 3,084,000 3,076,043 14,783,096 TOTAL SHORT-TERM INVESTMENTS (cost $14,881,327) 14,883,096 TOTAL INVESTMENTS (cost $578,585,554) 100.2% 608,406,143 LIABILITIES, LESS CASH AND RECEIVABLES (.2%) (1,329,856) NET ASSETS 100.0% 607,076,287 (A) NON-INCOME PRODUCING. SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES November 30, 2002 (Unaudited) Cost Value - -------------------------------------------------------------------------------- ASSETS ($): Investments in securities--See Statement of Investments 578,585,554 608,406,143 Cash 313,185 Dividends and interest receivable 423,991 Receivable for shares of Common Stock subscribed 126,070 Prepaid expenses 120,685 609,390,074 LIABILITIES ($): Due to The Dreyfus Corporation and affiliates 612,255 Payable for shares of Common Stock redeemed 1,333,551 Accrued expenses 367,981 2,313,787 NET ASSETS ($) 607,076,287 COMPOSITION OF NET ASSETS ($): Paid-in capital 842,928,983 Accumulated investment (loss)--net (183,745) Accumulated net realized gain (loss) on investments (265,489,540) Accumulated net unrealized appreciation (depreciation) on investments 29,820,589 NET ASSETS ($) 607,076,287 - -------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE Class A Class B Class C Class R Class T Class Z - ----------------------------------------------------------------------------------------------------------------------------------- Net Assets ($) 14,418,482 17,830,818 3,886,968 25,530,222 634,587 544,775,210 Shares Outstanding 2,153,239 2,730,764 594,884 3,769,275 96,648 80,723,362 NET ASSET VALUE PER SHARE ($) 6.70 6.53 6.53 6.77 6.57 6.75 SEE NOTES TO FINANCIAL STATEMENTS.
The Fund STATEMENT OF OPERATIONS Six Months Ended November 30, 2002 (Unaudited) - -------------------------------------------------------------------------------- INVESTMENT INCOME ($): INCOME: Cash dividends (net of $11,623 foreign taxes withheld at source) 3,304,400 Interest 106,123 TOTAL INCOME 3,410,523 EXPENSES: Investment advisory fee--Note 3(a) 2,376,639 Shareholder servicing costs--Note 3(c) 928,775 Distribution fees--Note 3(b) 86,302 Professional fees 63,320 Prospectus and shareholders' reports 48,561 Custodian fees--Note 3(c) 24,668 Registration fees 19,741 Directors' fees and expenses--Note 3(d) 13,335 Loan commitment fees--Note 2 4,212 Interest expense--Note 2 42 Miscellaneous 28,673 TOTAL EXPENSES 3,594,268 INVESTMENT (LOSS)--NET (183,745) REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($): Net realized gain (loss) on investments (91,884,607) Net unrealized appreciation (depreciation) on investments (42,353,104) NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (134,237,711) NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (134,421,456) SEE NOTES TO FINANCIAL STATEMENTS. STATEMENT OF CHANGES IN NET ASSETS Six Months Ended November 30, 2002 Year Ended (Unaudited) May 31, 2002 - -------------------------------------------------------------------------------- OPERATIONS ($): Investment (loss)--net (183,745) (1,522,256) Net realized gain (loss) on investments (91,884,607) (140,273,887) Net unrealized appreciation (depreciation) on investments (42,353,104) (98,306,321) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (134,421,456) (240,102,464) DIVIDENDS TO SHAREHOLDERS FROM ($): Net realized gain on investments: Class A shares -- (165,788) Class B shares -- (226,543) Class C shares -- (50,036) Class R shares -- (278,380) Class T shares -- (7,493) Class Z shares -- (6,883,770) TOTAL DIVIDENDS -- (7,612,010) CAPITAL STOCK TRANSACTIONS ($): Net proceeds from shares sold: Class A shares 2,201,906 43,028,527 Class B shares 920,542 5,065,555 Class C shares 168,256 1,515,012 Class R shares 1,589,753 3,712,132 Class T shares 29,871 1,323,750 Class Z shares 61,174,656 205,285,264 The Fund STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) Six Months Ended November 30, 2002 Year Ended (Unaudited) May 31, 2002 - -------------------------------------------------------------------------------- CAPITAL STOCK TRANSACTIONS ($) (CONTINUED): Dividends reinvested: Class A shares -- 139,248 Class B shares -- 207,301 Class C shares -- 37,245 Class R shares -- 278,305 Class T shares -- 7,482 Class Z shares -- 6,668,487 Cost of shares redeemed: Class A shares (3,406,066) (40,835,722) Class B shares (2,684,481) (5,353,087) Class C shares (740,866) (1,510,835) Class R shares (2,256,051) (3,416,454) Class T shares (136,962) (1,172,660) Class Z shares (112,510,595) (305,240,903) INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS (55,650,037) (90,261,353) TOTAL INCREASE (DECREASE) IN NET ASSETS (190,071,493) (337,975,827) NET ASSETS ($): Beginning of Period 797,147,780 1,135,123,607 END OF PERIOD 607,076,287 797,147,780 Six Months Ended November 30, 2002 Year Ended (Unaudited) May 31, 2002 - -------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: CLASS A(A) Shares sold 332,632 4,964,570 Shares issued for dividends reinvested -- 15,878 Shares redeemed (499,982) (4,776,015) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (167,350) 204,433 CLASS B(A) Shares sold 140,053 565,835 Shares issued for dividends reinvested -- 24,049 Shares redeemed (414,361) (619,732) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (274,308) (29,848) CLASS C Shares sold 25,974 173,114 Shares issued for dividends reinvested -- 4,316 Shares redeemed (116,095) (177,047) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (90,121) 383 CLASS R Shares sold 236,719 417,697 Shares issued for dividends reinvested -- 31,483 Shares redeemed (339,648) (387,065) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (102,929) 62,115 CLASS T Shares sold 4,513 155,868 Shares issued for dividends reinvested -- 865 Shares redeemed (20,455) (141,220) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (15,942) 15,513 CLASS Z Shares sold 9,160,223 22,707,686 Shares issued for dividends reinvested -- 755,201 Shares redeemed (16,963,130) (33,823,712) NET INCREASE (DECREASE) IN SHARES OUTSTANDING (7,802,907) (10,360,825) (A) DURING THE PERIOD ENDED NOVEMBER 30, 2002, 3,212 CLASS B SHARES REPRESENTING $20,684 WERE AUTOMATICALLY CONVERTED TO 3,135 CLASS A SHARES AND DURING THE PERIOD ENDED MAY 31, 2002, 4,979 CLASS B SHARES REPRESENTING $42,145 WERE AUTOMATICALLY CONVERTED TO 4,889 CLASS A SHARES. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS The following tables describe the performance for each share class for the fiscal periods indicated. All information (excluding portfolio turnover rate) reflects financial results for a single fund share. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions. These figures have been derived from the fund's financial statements. Six Months Ended November 30, 2002 Year Ended May 31, ---------------------------------------------- CLASS A SHARES (Unaudited) 2002 2001 2000(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 8.05 10.40 13.95 13.34 Investment Operations: Investment income (loss)--net (.01)(b) (.02)(b) (.06)(b) .20(b) Net realized and unrealized gain (loss) on investments (1.34) (2.26) (2.57) 1.76 Total from Investment Operations (1.35) (2.28) (2.63) 1.96 Distributions: Dividends from investment income--net -- -- (.08) -- Dividends from net realized gain on investments -- (.07) (.84) (1.35) Total Distributions -- (.07) (.92) (1.35) Net asset value, end of period 6.70 8.05 10.40 13.95 TOTAL RETURN (%)(C) (16.77) (21.95) (19.84) 14.90(d) RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .68 1.12 1.18 1.02(d Ratio of net investment income (loss) to average net assets (.14) (.22) (.51) 1.43(d) Portfolio Turnover Rate 42.54 103.52 82.54 60.20 Net Assets, end of period ($ x 1,000) 14,418 18,675 22,004 10,999 (A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) EXCLUSIVE OF SALES CHARGE. (D) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. Six Months Ended November 30, 2002 Year Ended May 31, ------------------------------------------ CLASS B SHARES (Unaudited) 2002 2001 2000(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 7.88 10.26 13.88 13.34 Investment Operations: Investment income (loss)--net (.03)(b) (.09)(b) (.16)(b) .15(b) Net realized and unrealized gain (loss) on investments (1.32) (2.22) (2.56) 1.74 Total from Investment Operations (1.35) (2.31) (2.72) 1.89 Distributions: Dividends from investment income--net -- -- (.06) -- Dividends from net realized gain on investments -- (.07) (.84) (1.35) Total Distributions -- (.07) (.90) (1.35) Net asset value, end of period 6.53 7.88 10.26 13.88 TOTAL RETURN (%)(C) (17.13) (22.55) (20.58) 14.34(d) RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets 1.04 1.93 1.95 1.55(d) Ratio of net investment income (loss) to average net assets (.51) (1.05) (1.30) 1.07(d) Portfolio Turnover Rate 42.54 103.52 82.54 60.20 Net Assets, end of period ($ x 1,000) 17,831 23,671 31,152 20,812 (A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) EXCLUSIVE OF SALES CHARGE. (D) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS (CONTINUED) Six Months Ended November 30, 2002 Year Ended May 31, ------------------------------------------- CLASS C SHARES (Unaudited) 2002 2001 2000(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 7.88 10.28 13.88 13.34 Investment Operations: Investment income (loss)--net (.03)(b) (.10)(b) (.16)(b) .11(b) Net realized and unrealized gain (loss) on investments (1.32) (2.23) (2.54) 1.78 Total from Investment Operations (1.35) (2.33) (2.70) 1.89 Distributions: Dividends from investment income--net -- -- (.06) -- Dividends from net realized gain on investments -- (.07) (.84) (1.35) Total Distributions -- (.07) (.90) (1.35) Net asset value, end of period 6.53 7.88 10.28 13.88 TOTAL RETURN (%)(C) (17.13) (22.70) (20.48) 14.34(d) RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets 1.04 1.98 1.92 1.54(d) Ratio of net investment income (loss) to average net assets (.50) (1.09) (1.28) .77(d) Portfolio Turnover Rate 42.54 103.52 82.54 60.20 Net Assets, end of period ($ x 1,000) 3,887 5,399 7,037 5,234 (A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) EXCLUSIVE OF SALES CHARGE. (D) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. Six Months Ended November 30, 2002 Year Ended May 31, --------------------------------------------- CLASS R SHARES (Unaudited) 2002 2001 2000(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 8.12 10.46 14.00 13.34 Investment Operations: Investment income (loss)--net .01(b) .01(b) (.03)(b) .26(b) Net realized and unrealized gain (loss) on investments (1.36) (2.28) (2.58) 1.75 Total from Investment Operations (1.35) (2.27) (2.61) 2.01 Distributions: Dividends from investment income--net -- -- (.09) -- Dividends from net realized gain on investments -- (.07) (.84) (1.35) Total Distributions -- (.07) (.93) (1.35) Net asset value, end of period 6.77 8.12 10.46 14.00 TOTAL RETURN (%) (16.62) (21.73) (19.64) 15.30(c) RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .43 .81 .84 .75(c) Ratio of net investment income (loss) to average net assets .11 .08 (.20) 1.69(c) Portfolio Turnover Rate 42.54 103.52 82.54 60.20 Net Assets, end of period ($ x 1,000) 25,530 31,441 39,854 45,641 (A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. The Fund FINANCIAL HIGHLIGHTS (CONTINUED) Six Months Ended November 30, 2002 Year Ended May 31, ---------------------------------------------- CLASS T SHARES (Unaudited) 2002 2001 2000(a) - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 7.90 10.29 13.85 13.34 Investment Operations: Investment income (loss)--net (.01)(b) (.08)(b) (.10)(b) .20(b) Net realized and unrealized gain (loss) on investments (1.32) (2.24) (2.54) 1.66 Total from Investment Operations (1.33) (2.32) (2.64) 1.86 Distributions: Dividends from investment income--net -- -- (.08) -- Dividends from net realized gain on investments -- (.07) (.84) (1.35) Total Distributions -- (.07) (.92) (1.35) Net asset value, end of period 6.57 7.90 10.29 13.85 TOTAL RETURN (%)(C) (16.84) (22.58) (20.08) 14.14(d) RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .75 1.78 1.48 1.21(d) Ratio of net investment income (loss) to average net assets (.21) (.89) (.82) 1.40(d) Portfolio Turnover Rate 42.54 103.52 82.54 60.20 Net Assets, end of period ($ x 1,000) 635 890 998 456 (A) FROM AUGUST 31, 1999 (COMMENCEMENT OF INITIAL OFFERING) TO MAY 31, 2000. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) EXCLUSIVE OF SALES CHARGE. (D) NOT ANNUALIZED. SEE NOTES TO FINANCIAL STATEMENTS. Six Months Ended November 30, 2002 Year Ended May 31, ----------------------------------------------------------------------- CLASS Z SHARES (Unaudited) 2002 2001 2000(a) 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------------ PER SHARE DATA ($): Net asset value, beginning of period 8.10 10.46 14.00 12.72 11.78 10.01 Investment Operations: Investment income (loss)--net (.00)(b,c) (.01)(b) (.04)(b) .08(b) (.01) .01 Net realized and unrealized gain (loss) on investments (1.35) (2.28) (2.58) 2.55 2.29 2.68 Total from Investment Operations (1.35) (2.29) (2.62) 2.63 2.28 2.69 Distributions: Dividends from investment income--net -- -- (.08) -- -- (.02) Dividends from net realized gain on investments -- (.07) (.84) (1.35) (1.34) (.90) Total Distributions -- (.07) (.92) (1.35) (1.34) (.92) Net asset value, end of period 6.75 8.10 10.46 14.00 12.72 11.78 TOTAL RETURN (%) (16.67) (21.92) (19.69) 20.91 20.30 27.76 RATIOS/SUPPLEMENTAL DATA (%): Ratio of expenses to average net assets .55 1.02 .95 .96 .96 .97 Ratio of net investment income (loss) to average net assets (.01) (.14) (.32) .60 (.11) .07 Portfolio Turnover Rate 42.54 103.52 82.54 60.20 75.88 70.41 Net Assets, end of period ($ X 1,000) 544,775 717,072 1,034,078 1,310,890 1,130,190 911,688 (A) THE FUND CHANGED TO A SIX CLASS FUND ON AUGUST 31, 1999. THE EXISTING SHARES WERE REDESIGNATED CLASS Z SHARES. (B) BASED ON AVERAGE SHARES OUTSTANDING AT EACH MONTH END. (C) AMOUNT REPRESENTS LESS THAN $.01 PER SHARE. SEE NOTES TO FINANCIAL STATEMENTS.
The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1--Significant Accounting Policies: The Dreyfus Premier Third Century Fund, Inc. (the "fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified open-end management investment company. The fund's investment objective is to provide capital growth, with current income as a secondary goal. The Dreyfus Corporation ("The Manager") serves as the fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. ("Mellon"), which is a wholly-owned subsidiary of Mellon Financial Corporation. Dreyfus Service Corporation (the "Distributor"), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund's shares. The fund is authorized to issue 100 million shares of $.001 par value Common Stock in each of the following classes of shares: Class A, Class B, Class C, Class R and Class T and 200 million shares of $.001 par value Common Stock of Class Z. Class A, Class B, Class C and Class T shares are sold primarily to retail investors through financial intermediaries and bear a distribution fee and/or service fee. Class Z shares are not available for new accounts and bear a service fee. Class A shares and Class T shares are subject to a sales charge imposed at the time of purchase. Class B shares are subject to a contingent deferred sales charge ("CDSC") imposed on Class B share redemptions made within six years of purchase and automatically convert to Class A shares after six years. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase and Class R shares are sold at net asset value per share only to institutional investors. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. The fund's financial statements are prepared in accordance with accounting principles generally accepted in the United States, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. (a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market. Securities not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. Securities for which there are no such valuations are valued at fair value as determined in good faith under the direction of the Board of Directors. (b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income, including, where applicable, amortization of discount and premium on investments, is recognized on the accrual basis. Under the terms of the custody agreement, the fund received net earnings credits of $487 during the period ended November 30, 2002, based on available cash balances left on deposit. Income earned under this arrangement is included in interest income. (c) Dividends to shareholders: Dividends are recorded on the ex-dividend date. Dividends from investment income-net and dividends from net realized capital gain, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the "Code"). To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gain. (d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, if such qualification is in the best interests of its shareholders, by complying with the applicable provisions of the Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes. The fund has an unused capital loss carryover of $139,788,117 available for federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to May 31, 2002. If not applied, the carryover expires in fiscal 2010. The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) The tax character of distributions paid to shareholders during the fiscal year ended May 31, 2002, was as follows: long-term capital gains $7,612,010. The tax character of current year distributions, if any, will be determined at the end of the current fiscal year. NOTE 2--Bank Line of Credit: The fund participates with other Dreyfus-managed funds in a $500 million redemption credit facility (the "Facility") primarily to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings. The average daily amount of borrowings outstanding under the Facility during the period ended November 30, 2002 was approximately $3,800, with a related weighted average annualized interest rate of 2.17%. NOTE 3--Investment Advisory Fee and Other Transactions With Affiliates: (a) Pursuant to the Investment Advisory Agreement ("Agreement") with the Manager, the investment advisory fee is computed at an annual rate of .75 of 1% of the value of the fund's average daily net assets and is payable monthly. Pursuant to the Agreement, if in any full fiscal year the aggregate expenses allocable to Class Z, exclusive of taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary expenses, exceed 1 1/2% of the value of the average daily net assets of Class Z, the fund may deduct from the fees paid to Dreyfus, or Dreyfus will bear such excess expense. During the period ended November 30, 2002, there was no expense reimbursement pursuant to the Agreement. During the period ended November 30, 2002, the Distributor retained $999 and $49 from commissions earned on sales of the fund's Class A and Class T shares, respectively, and $45,043 and $201 from contingent deferred sales charges on redemptions of the fund's Class B and Class C shares, respectively. (b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1 under the Act, Class B, Class C and Class T shares pay the Distributor for distributing their shares at the annual rates of .75 of 1% of the value of the average daily net assets of Class B and Class C shares and .25 of 1% of the value of the average daily net assets of Class T shares. During the period ended November 30, 2002, Class B, Class C and Class T shares were charged $70,054, $15,414 and $834, respectively, pursuant to the Plan. (c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class T shares pay the Distributor at an annual rate of .25 of 1% of the value of their average daily net assets for the provision of certain services. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding Class A, Class B, Class C and Class T shares and providing reports and other information, and services related to the maintenance of shareholder accounts. The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended November 30, 2002, Class A, Class B, Class C and Class T shares were charged $18,276, $23,352, $5,138, and $834, respectively, pursuant to the Shareholder Services Plan. Under the Shareholder Services Plan, Class Z shares reimburse the Distributor an amount not to exceed an annual rate of .25 of 1% of the value of the average daily net assets of Class Z for certain allocated expenses with respect to services and/or maintaining shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended November 30, 2002, Class Z shares were charged $292,986 pursuant to the Shareholder Services Plan. The Fund NOTES TO FINANCIAL STATEMENTS (Unaudited) (CONTINUED) The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended November 30, 2002, the fund was charged $176,053 pursuant to the transfer agency agreement. The fund compensates Mellon under a custody agreement for providing custodial services for the fund. During the period ended November 30, 2002, the fund was charged $24,668 pursuant to the custody agreement. (d) Each Board member also serves as a Board member of other funds within the Dreyfus complex (collectively, the "Fund Group"). Each Board member, who is not an "affiliated person" as defined in the Act, receives an annual fee of $25,000 and an attendance fee of $4,000 for each in person meeting and $500 for telephone meetings. These fees are allocated among the funds in the Fund Group. The Chairman of the Board receives an additional 25% of such compensation. Subject to the fund's Emeritus Program Guidelines, Emeritus Board members, if any, receive 50% of the annual retainer fee and per meeting fee paid at the time the Board member achieves emeritus status. NOTE 4--Securities Transactions: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended November 30, 2002, amounted to $270,208,870 and $315,213,710, respectively. At November 30, 2002, accumulated net unrealized appreciation on investments was $29,820,589, consisting of $79,150,177 gross unrealized appreciation and $49,329,588 gross unrealized depreciation. At November 30, 2002, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). For More Information The Dreyfus Premier Third Century Fund, Inc. 200 Park Avenue New York, NY 10166 Manager The Dreyfus Corporation 200 Park Avenue New York, NY 10166 Custodian Mellon Bank, N.A. One Mellon Bank Center Pittsburgh, PA 15258 Transfer Agent & Dividend Disbursing Agent Dreyfus Transfer, Inc. 200 Park Avenue New York, NY 10166 Distributor Dreyfus Service Corporation 200 Park Avenue New York, NY 10166 To obtain information: BY TELEPHONE Call your financial representative or 1-800-554-4611 BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss Boulevard Uniondale, NY 11556-0144 Printed on recycled paper. 50% post-consumer Process chlorine free. Vegetable-based ink. Printed in U.S.A. (c) 2003 Dreyfus Service Corporation 035SA1102 -----END PRIVACY-ENHANCED MESSAGE-----