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

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 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 17, 2007 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)

   
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
    
34.6
      
41.7
  
Restricted investments and marketable securities
    
2.0
      
3.3
  
Other assets
    
12.7
      
11.2
  
     
1,700.6
      
1,688.0
  
Total Assets
   $
2,759.3
     $
2,635.9
  
                 
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
    
236.2
      
283.7
  
   Total current liabilities
    
606.3
      
515.2
  
                 
Other Liabilities:
                
Deferred income taxes
    
29.2
      
35.9
  
Other
    
144.5
      
128.8
  
     
173.7
      
164.7
  
                 
Notes, Mortgage Notes and Obligations Payable, Less Current Maturities
    
1,892.5
      
1,883.2
  
                 
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
    
21.5
      
21.3
  
Retained earnings
    
45.2
      
39.9
  
Accumulated other comprehensive income
    
20.1
      
11.6
  
   Total stockholder's investment
    
86.8
      
72.8
  
Total Liabilities and Stockholder's Investment
   $
2,759.3
     $
2,635.9
  
 
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 second quarter ended
  
   
June 30, 2007
    
July 1, 2006
  
   
(Dollar amounts in millions)
  
             
Net Sales
   $
644.3