UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

__________

FORM 10-Q
__________


     
[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
For the quarterly period ended July 5, 2003
     
OR
     
[_]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
For the transition period from ___________ to __________
     
1-6112
(Commission File Number)
__________
     
NORTEK, INC.
(Exact name of registrant as specified in its charter)
__________


            Delaware   05-0314991
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)
     
50 Kennedy Plaza, Providence, RI   02903-2360
    (Address of principal executive offices)       (Zip Code)
 
(401) 751-1600
(Registrant’s telephone number, including area code)
__________


Indicate by check mark whether the 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 [X]   No [_]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
Yes [X]   No [_]

The number of shares of Common Stock outstanding as of August 8, 2003 was 100.




NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET

July 5, Dec. 31,
2003
 2002
(Amounts in thousands)
(Unaudited)
 
Assets            
Current Assets:  
Unrestricted:  
  Cash and cash equivalents   $ 89,770   $ 294,804  
  Marketable securities available for sale    20,068    --  
Restricted:  
  Cash, investments and marketable securities at cost,  
    which approximates market    4,348    4,340  
Accounts receivable, less allowances  
  of $13,941,000 and $13,132,000    294,725    225,632  
Inventories  
  Raw materials    81,926    72,702  
  Work in process    21,555    19,719  
  Finished goods    109,915    83,464  
     213,396    175,885  
Prepaid expenses    15,178    15,523  
Other current assets    12,745    10,770  
Prepaid income taxes    60,350    27,064  
      Total current assets    710,580    754,018  
 
Property and Equipment, at Cost:  
Land    23,821    14,126  
Buildings and improvements    116,559    134,619  
Machinery and equipment    250,504    358,066  
     390,884    506,811  
Less accumulated depreciation    15,790    239,818  
      Total property and equipment, net    375,094    266,993  
 
Other Assets:  
Goodwill    800,543    551,162  
Intangible assets, less accumulated amortization  
  of $5,870,000 and $34,010,000    177,607    109,915  
Deferred debt expense    3,430    19,687  
Restricted investments and marketable securities held  
  by pension trusts    --    76,503  
Other    18,865    42,666  
     1,000,445    799,933  
    $ 2,086,119   $ 1,820,944  
 
Liabilities and Stockholder's Investment  
 
Current Liabilities:  
Notes payable and other short-term obligations   $ 4,381   $ 3,338  
Current maturities of long-term debt    4,280    3,449  
Accounts payable    150,688    126,400  
Accrued expenses and taxes, net    178,354    169,746  
      Total current liabilities    337,703    302,933  
 
Other Liabilities:  
Deferred income taxes    101,337    21,625  
Other    161,335    195,249  
     262,672    216,874  
 
Notes, Mortgage Notes and Obligations  
  Payable, Less Current Maturities    999,519    983,632  
 
Stockholder's Investment:  
Common stock, $.01 par value; authorized 100 shares,  
   100 shares issued and outstanding at July 5, 2003 and  
   December 31, 2002    --    --  
Additional paid-in capital    440,842    119,621  
Retained earnings    32,400    255,366  
Accumulated other comprehensive income (loss)    12,983    (57,482 )
      Total stockholder's investment    486,225    317,505  
    $ 2,086,119   $ 1,820,944  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For The
Three Months Ended
Post - Pre -
Recapitalization
 Recapitalization
July 5, June 29,
2003
 2002
(Amounts in thousands)
(Unaudited)
 
Net Sales     $ 544,503   $ 519,719  
 
Costs and Expenses:  
  Cost of products sold    394,401    366,415  
  Selling, general and administrative expenses, net    81,283    85,431  
  Amortization of intangible assets    3,091    1,487  
  Expenses and charges arising from the Recapitalization    --    5,200  
     478,775    458,533  
 
Operating earnings    65,728    61,186  
Interest expense    (22,552 )  (24,223 )
Investment income    324    1,937  
Earnings from continuing operations before provision  
   for income taxes    43,500    38,900  
Provision for income taxes    17,300    15,600  
Earnings from continuing operations    26,200    23,300  
Earnings from discontinued operations    --    4,400  
Net earnings   $ 26,200   $ 27,700  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For the Periods
Post-  
Recapitalization
 Pre-Recapitalization
Jan. 10, 2003 - Jan. 1, 2003 - Jan. 1, 2002 -
July 5, 2003
 Jan. 9, 2003
 June 29, 2002
(Amounts in thousands)
(Unaudited)
 
Net Sales     $ 979,704   $ 33,775   $ 946,931  
 
Costs and Expenses:  
   Cost of products sold    714,157    26,286    679,214  
   Selling, general and administrative expense    158,504    6,485    160,591  
   Amortization of intangible assets    5,901    137    2,992  
   Expenses and charges arising from the  
      Recapitalization    --    87,700    5,200  
     878,562    120,608    847,997  
 
Operating earnings (loss)    101,142    (86,833 )  98,934  
Interest expense    (48,201 )  (2,288 )  (48,390 )
Investment income    759    121    3,656  
Earnings (loss) from continuing operations  
   before provision (benefit) for income taxes    53,700    (89,000 )  54,200  
Provision (benefit) for income taxes    21,300    (24,100 )  21,500  
Earnings (loss) from continuing operations    32,400    (64,900 )  32,700  
Earnings from discontinued operations    --    --    5,600  
Net earnings (loss)   $ 32,400   $ (64,900 ) $ 38,300  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the Periods
Post-  
Recapitalization
 Pre-Recapitalization
Jan. 10, 2003 - Jan. 1, 2003 - Jan. 1, 2002 -
July 5, 2003
 Jan. 9, 2003
 June 29, 2002
(Amounts in thousands)
(Unaudited)
 
Cash Flows from operating activities:                
Net earnings (loss) from continuing operations   $ 32,400   $ (64,900 ) $ 32,700  
Earnings from discontinued operations    --    --    5,600  
Net earnings (loss)    32,400    (64,900 )  38,300  
 
Adjustments to reconcile net earnings (loss)  
  to cash:  
Depreciation and amortization expense    18,637    968    21,947  
Non-cash write-off of inventory    6,362    --    --  
Gain on the sale of a discontinued business    --    --    (5,400 )
Non-cash interest expense, net (including $4,100,000 from  
     post-recapitalization amortization of the Bridge Facility    
      commitment fees and expenses)    3,550    131    1,191  
Deferred federal income tax provision (credit)     17,800     (23,900)     --  
Effect of the Recapitalization, net    --    65,397    --  
Changes in certain assets and liabilities, net of  
  effects from acquisitions and dispositions:  
Accounts receivable, net    (62,730 )  2,749    (50,465 )
Inventories    (20,066 )  (3,444 )  (18,192 )
Prepaids and other current assets    149    204    (924 )
Net assets of discontinued operations    --    --    (2,383 )
Accounts payable    18,214    957    22,062  
Accrued expenses and taxes     (14,293)     24,648    16,783  
Long-term assets, liabilities and other, net     (857 )  (8,422 )  (676 )
    Total adjustments to net earnings (loss)    (33,234 )  59,288    (16,057 )
    Net cash (used in) provided by operating activities   $ (834 ) $ (5,612 ) $ 22,243  
 
Cash Flows from investing activities:  
Capital expenditures     $ (11,632 ) $ (556 ) $ (10,144 )
Net cash paid for a business acquired    (17,237 )  --    --  
Purchase of investments and marketable securities    (30,015 )  --    (194,976 )
Proceeds from the sale of investments and  
  marketable securities    9,947    --    148,451  
Proceeds from the sale of a discontinued business    --    --    20,816  
Change in restricted cash and investments    (12 )  (48 )  (20,652 )
Other, net       (608 )  157    15  
  Net cash used in investing activities     (49,557 )