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 July 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: 333-133866

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 August 4, 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 millions, except share data)
 
 
 
July 1,
 
December 31,
 
 
 
2006
 
2005
  
Assets
          
Current Assets:
          
Cash and cash equivalents
  
$
54.9
  
$
77.2
  
Accounts receivable, less allowances of $6.8 and $6.6
    
330.2
   
272.2
 
Inventories:
              
    Raw materials
   
87.1
   
75.2
 
    Work in process
   
32.2
   
21.4
 
    Finished goods
   
178.2
   
145.7
 
     
297.5
   
242.3
 
               
Prepaid expenses
   
12.9
   
10.5
 
Other current assets
   
21.9
   
26.3
 
Prepaid income taxes
   
23.3
   
21.0
 
    Total current assets
   
740.7
   
649.5
 
               
Property and Equipment, at Cost:
              
Land
   
11.1
   
8.8
 
Buildings and improvements
   
94.4
   
84.3
 
Machinery and equipment
   
159.2
   
141.1
 
     
264.7
   
234.2
 
Less accumulated depreciation
   
43.3
   
28.7
 
    Total property and equipment, net
   
221.4
   
205.5
 
               
Other Assets:
              
Goodwill
   
1,387.0
   
1,381.3
 
Intangible assets, less accumulated amortization of $37.5 and $27.3
    
144.9
   
114.5
 
Deferred debt expense
   
45.0
   
42.1
 
Restricted investments and marketable securities
    
4.0
   
4.0
 
Other assets
    
8.6
   
7.7
 
     
1,589.5
   
1,549.6
 
   
$
2,551.6
  
$
2,404.6
  
               
Liabilities and Stockholder’s Investment
              
               
Current Liabilities:
              
Notes payable and other short-term obligations
 
$
33.5
  
$
4.9
  
Current maturities of long-term debt
   
18.7
   
14.8
 
Accounts payable
   
205.5
   
159.0
 
Accrued expenses and taxes, net
   
198.7
   
187.2
 
    Total current liabilities
   
456.4
   
365.9
 
               
Other Liabilities:
              
Deferred income taxes
   
31.3
   
4.1
 
Other
   
135.6
   
215.4
 
     
166.9
   
219.5
 
               
 
              
Notes, Mortgage Notes and Obligations Payable, Less Current Maturities
    
1,858.8
   
1,628.7
 
               
Stockholder’s Investment:
              
Common stock, $0.01 par value, authorized 3,000 shares; 3,000 issued and
             
    outstanding at July 1, 2006 and December 31, 2005
   
---
   
---
 
Additional paid-in capital
   
21.2
   
130.2
 
Retained earnings
    
33.9
   
52.8
 
Accumulated other comprehensive income
    
14.4
   
7.5
 
     Total stockholder's investment
   
69.5
   
190.5
 
Total Liabilities and Stockholder's Investment:
  
$
2,551.6
  
$
2,404.6
  
 
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
 
 
 
July 1, 2006
 
July 2, 2005
 
 
 
(Dollar amounts in millions)
  
           
Net Sales 
  
$
563.8
  
$
498.9
  
               
Costs and Expenses:
              
    Cost of products sold
   
393.7
   
350.4
 
    Selling, general and administrative expense, net
    
102.9
   
85.1
 
    Amortization of intangible assets
   
5.8
   
4.4
 
    Gain from curtailment of post-retirement medical benefits
    
(35.6
)
  
---
 
     
466.8
   
439.9
 
Operating earnings
    
97.0
   
59.0
 
Interest expense
   
(42.3
)
  
(32.7
)
Investment income
   
0.5
   
0.3
 
Earnings before provision for income taxes
    
55.2
   
26.6
 
Provision for income taxes
   
21.3
   
10.1
 
Net earnings
  
$
33.9
  
$
16.5
  
 
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 first six months ended
 
 
 
July 1, 2006
 
July 2, 2005
 
 
 
(Dollar amounts in millions)