UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 10-Q
                (Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 
For the quarterly period ended April 1, 2006

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number: 333-126389

NTK Holdings, Inc.
(exact name of registrant as specified in its charter)
   
 
Delaware
20-1934298
(State or other jurisdiction of incorporation or organization)
(IRS Employer Identification Number)
   
50 Kennedy Plaza
Providence, Rhode Island
 
02903-2360
(Address of principal executive offices)
(zip code)
   
Registrant’s Telephone Number, Including Area Code:
(401) 751-1600
 
Securities registered pursuant to Section 12(b) of the Act: None



Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. 
Yes [_] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See definition of “accelerated filer and large accelerated file” in Rule 12b-2 of the Exchange Act). (Check one):

Large accelerated filer [_]
Accelerated Filer [_]
Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [_] No [X]

The aggregate market value of voting stock held by non-affiliates is zero.

The number of shares of Common Stock outstanding as of May 5, 2006 was 3,000.


 
PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

NTK HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
(Dollar amounts in thousands)

   
April 1,
 
December 31,
 
 
 
2006
 
2005
  
Assets
          
Current Assets:
          
Cash and cash equivalents
  
$
70,158
  
$
77,175
  
Accounts receivable, less allowances of $6,694 and $6,582
    
302,931
   
272,191
 
Inventories:
              
    Raw materials
   
77,762
   
75,159
 
    Work in process
   
24,309
   
21,400
 
    Finished goods
   
153,748
   
145,753
 
     
255,819
   
242,312
 
               
Prepaid expenses
   
11,167
   
10,510
 
Other current assets
   
26,610
   
26,329
 
Prepaid income taxes
   
15,890
   
20,955
 
    Total current assets
   
682,575
   
649,472
 
               
Property and Equipment, at Cost:
              
Land
   
10,536
   
8,784
 
Buildings and improvements
   
88,780
   
84,310
 
Machinery and equipment
   
148,758
   
141,112
 
     
248,074
   
234,206
 
Less accumulated depreciation
   
36,680
   
28,717
 
    Total property and equipment, net
   
211,394
   
205,489
 
               
Other Assets:
              
Goodwill
   
1,379,115
   
1,381,350
 
Intangible assets, less accumulated amortization of $31,581 and $27,328
    
114,593
   
114,474
 
Deferred debt expense
   
40,699
   
42,098
 
Restricted investments and marketable securities
    
4,018
   
4,015
 
Other assets
    
7,564
   
7,711
 
     
1,545,989
   
1,549,648
 
   
$
2,439,958
  
$
2,404,609
  
Liabilities and Stockholder’s Investment
              
               
Current Liabilities:
              
Notes payable and other short-term obligations
 
$
5,714
  
$
4,915
  
Current maturities of long-term debt
   
18,246
   
14,786
 
Accounts payable
   
180,533
   
159,015
 
Accrued expenses and taxes, net
   
168,712
   
187,183
 
    Total current liabilities
   
373,205
   
365,899
 
               
Other Liabilities:
              
Deferred income taxes
   
2,661
   
4,119
 
Other
   
218,426
   
215,388
 
     
221,087
   
219,507
 
               
Notes, Mortgage Notes and Obligations Payable, Less Current Maturities 
    
1,636,714
   
1,628,677
 
               
Stockholder’s Investment:
              
Common stock, $0.01 par value, authorized 3,000 shares;
              
    3,000 issued and outstanding at April 1, 2006 and December 31, 2005
    
---
   
---
 
Additional paid-in capital
   
130,264
   
130,181
 
Retained earnings
    
70,600
   
52,800
 
Accumulated other comprehensive income
    
8,088
   
7,545
 
     Total stockholder's investment
   
208,952
   
190,526
 
Total Liabilities and Stockholder's Investment:
  
$
2,439,958
  
$
2,404,609
  
 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


NTK HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 
 
 
For the three months ended
 
 
 
April 1, 2006
 
April 2, 2005
 
 
 
(Dollar amounts in thousands)
  
           
Net Sales 
  
$
534,542
  
$
434,118
  
               
Costs and Expenses:
              
    Cost of products sold
   
370,468
   
309,459
 
    Selling, general and administrative expense
   
95,337
   
79,588
 
    Amortization of intangible assets
   
4,221
   
4,333
 
     
470,026
   
393,380
 
Operating earnings
    
64,516
   
40,738
 
Interest expense
   
(36,124
)
  
(37,184
)
Investment income
   
708
   
446
 
Earnings before provision for income taxes
    
29,100
   
4,000
 
Provision for income taxes
   
11,300
   
1,700
 
Net earnings
  
$
17,800
  
$
2,300
  
 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


NTK HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

   
For the three months ended
 
 
 
April 1, 2006
 
April 2, 2005
 
 
 
(Dollar amounts in thousands)
 
Cash Flows from operating activities:
          
Net earnings
  
$
17,800
  
$
2,300