jun3007_10qntk.htm

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 June 30, 2007

[ ] 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: 333-119902

Nortek, Inc.
(exact name of registrant as specified in its charter)

Delaware	05-0314991
(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 filer” 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 10, 2007 was 3,000.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

NORTEK, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

(Dollar amounts in millions, except share data)

	June 30,		December 31,
	2007		2006
Assets
Current Assets:
Unrestricted cash and cash equivalents	$	75.3	$	57.4
Restricted cash		1.3		1.2
Accounts receivable, less allowances of $12.9 and $9.4		384.4		328.9
Inventories:
Raw materials		93.0		83.1
Work in process		33.6		28.7
Finished goods		193.6		166.8
		320.2		278.6

Prepaid expenses		13.5		13.7
Other current assets		11.4		24.4
Prepaid income taxes		30.2		21.2
Total current assets		836.3		725.4

Property and Equipment, at Cost:
Land		9.9		9.5
Buildings and improvements		104.1		101.9
Machinery and equipment		192.8		177.2
		306.8		288.6
Less accumulated depreciation		84.4		66.1
Total property and equipment, net		222.4		222.5

Other Assets:
Goodwill		1,509.3		1,481.4
Intangible assets, less accumulated amortization of $65.2 and $52.4		142.0		150.4
Deferred debt expense		30.2		33.1
Restricted investments and marketable securities		2.0		3.3
Other assets		12.7		11.2
		1,696.2		1,679.4
Total Assets	$	2,754.9	$	2,627.3

Liabilities and Stockholder’s Investment

Current Liabilities:
Notes payable and other short-term obligations	$	99.4	$	23.3
Current maturities of long-term debt		26.9		20.0
Accounts payable		243.8		188.2
Accrued expenses and taxes, net		235.0		282.8
Total current liabilities		605.1		514.3

Other Liabilities:
Deferred income taxes		29.2		33.9
Long-term payable to affiliate		30.0		24.9
Other		144.5		128.8
		203.7		187.6

Notes, Mortgage Notes and Obligations Payable, Less Current Maturities		1,349.6		1,362.3

Stockholder’s Investment:
Common stock, $0.01 par value, authorized 3,000 shares; 3,000 issued and
outstanding at June 30, 2007 and December 31, 2006		---		---
Additional paid-in capital		412.3		412.1
Retained earnings		164.1		139.4
Accumulated other comprehensive income		20.1		11.6
Total stockholder's investment		596.5		563.1
Total Liabilities and Stockholder's Investment	$	2,754.9	$	2,627.3

	For the second quarter ended
	June 30, 2007	July 1, 2006
	(Dollar amounts in millions)

Net Sales	$