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 April 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 May 15, 2003 was 100.




NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET

April 5, Dec. 31,
2003
 2002
(Amounts in thousands)
(Unaudited)
 
Assets            
Current Assets:    
Unrestricted  
  Cash and cash equivalents   $ 70,165   $ 294,804  
  Marketable securities available for sale    20,018    --  
Restricted    
  Cash, investments and marketable securities at cost,  
    which approximates market    4,346    4,340  
Accounts receivable, less allowances    
  of $15,399,000 and $13,132,000    259,683    225,632  
Inventories  
  Raw materials    78,789    72,702  
  Work in process    22,115    19,719  
  Finished goods    119,544    83,464  
     220,448    175,885  
 
Prepaid expenses    12,585    15,523  
Other current assets    12,823    10,770  
Prepaid income taxes    60,321    27,064  
      Total current assets    660,389    754,018  
 
Property and Equipment, at Cost:  
Land    23,586    14,126  
Buildings and improvements    114,408    134,619  
Machinery and equipment       240,554     358,066  
        378,548     506,811  
Less accumulated depreciation       6,836     239,818  
      Total property and equipment, net    371,712    266,993  
 
Other Assets:  
Goodwill    793,351    551,162  
Intangible assets, less accumulated amortization  
  of $2,869,000 and $34,010,000    179,955    109,915  
Deferred debt expense    3,667    19,687  
Restricted investments and marketable securities held  
  by pension trusts    --    76,503  
Other    19,137    42,666  
     996,110    799,933  
    $ 2,028,211   $ 1,820,944  
 
Liabilities and Stockholder's Investment  
 
Current Liabilities:  
Notes payable and other short-term obligations   $ 6,814   $ 3,338  
Current maturities of long-term debt    4,166    3,449  
Accounts payable    169,426    126,400  
Accrued expenses and taxes, net    152,231    169,746  
      Total current liabilities    332,637    302,933  
 
Other Liabilities:  
Deferred income taxes    89,498    21,625  
Other    154,527    195,249  
     244,025    216,874  
 
Notes, Mortgage Notes and Obligations  
  Payable, Less Current Maturities    1,001,245    983,632  
 
Stockholder's Investment:  
Common stock, $.01 par value; authorized 100 shares,    
   100 shares issued and outstanding at April 5, 2003 and    
   December 31, 2002    --    --  
Additional paid-in capital    440,837    119,621  
Retained earnings    6,200    255,366  
Accumulated other comprehensive income (loss)    3,267    (57,482 )
      Total stockholder's investment    450,304    317,505  
    $ 2,028,211   $ 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
(Amounts in thousands)

For the Periods
Post-Recapitalization
 Pre-Recapitalization
January 10, 2003 - January 1, 2003 - January 1, 2002 -
April 5, 2003
 January 9, 2003
 March 30, 2002
(Unaudited)
 
Net Sales     $ 435,201   $ 33,775   $ 427,212  
 
Costs and Expenses:  
   Cost of products sold    319,756    26,286    312,799  
   Selling, general and administrative expense    77,221    6,485    75,160  
   Amortization of intangible assets    2,810    137    1,505  
   Expenses and charges arising from the  
      Recapitalization    --    87,700    --  
     399,787    120,608    389,464  
 
Operating earnings (loss)    35,414    (86,833 )  37,748  
Interest expense    (25,649 )  (2,288 )  (24,167 )
Investment income    435    121    1,719  
Earnings (loss) from continuing operations    
   before provision (benefit) for income taxes    10,200    (89,000 )  15,300  
Provision (benefit) for income taxes    4,000    (24,100 )  5,900  
Earnings (loss) from continuing operations    6,200    (64,900 )  9,400  
Earnings from discontinued operations    --    --    1,200  
Net earnings (loss)   $ 6,200   $ (64,900 ) $ 10,600  

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


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Amounts in thousands)

For the Periods
Post-Recapitalization
 Pre-Recapitalization
January 10, 2003 - January 1, 2003 - January 1, 2002 -
April 5, 2003
 January 9, 2003
 March 30, 2002
(Unaudited)
 
Cash Flows from operating activities:                
Net earnings (loss) from continuing operations   $ 6,200   $ (64,900 ) $ 9,400  
Earnings from discontinued operations    --    --    1,200  
Net earnings (loss)    6,200    (64,900 )  10,600  
 
Adjustments to reconcile net earnings (loss)  
  to cash:  
Depreciation and amortization expense    8,961    968    11,094  
Non-cash write-off of inventory    5,404    --    --  
Non-cash interest expense (including $4,100,000    
     from amortization of the Bridge Facility    
     commitment fees and expenses)    3,830    131    550  
Deferred federal income tax provision (credit)       3,800   (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    (32,672 )  2,749    (26,387 )
Inventories       (28,688 )   (3,444 )   (15,826 )
Prepaids and other current assets       1,368     204     (451 )
Net assets of discontinued operations    --    --    (2,428 )
Accounts payable       40,046     957     19,274  
Accrued expenses and taxes       (37,799 )   24,648     (12,868 )
Long-term assets, liabilities and other, net       (973 )   (8,422 )   (3,372 )
    Total adjustments to net earnings (loss)    (36,723 )  59,288    (30,414 )
    Net cash used in operating activities   $ (30,523 ) $ (5,612 ) $ (19,814 )
 
Cash Flows from investing activities:  
Capital expenditures   $ (5,437 ) $ (556 ) $ (4,294 )
Net cash paid for a business acquired    (17,237 )  --    --  
Purchase of investments and marketable securities    (20,018 )  --    (130,094 )
Proceeds from the sale of investments and  
  marketable securities    --    --    75,792  
Change in restricted cash and investments    (8 )  (48 )  (9,652 )
Other, net    (630 )  157    32  
  Net cash used in investing activities   $ (43,330 ) $ (447 ) $ (68,216 )
Cash Flows from financing activities:  
Change in borrowings, net    3,972    (1,358 )  (3,182 )
Dividend paid to Nortek Holdings    --    (120,000 )  --  
Contribution of capital from Nortek Holdings    --    4,603    --  
Net cash transfers to Nortek Holdings    --    (27,900 )  --  
Other, net    (257 )  (3,787 )  317  
  Net cash provided by (used in) financing activities    3,715    (148,442 )  (2,865 )
Net decrease in unrestricted cash and    
  cash equivalents    (70,138 )  (154,501 )  (90,895 )
Unrestricted cash and cash equivalents at the  
  beginning of the period    140,303    294,804    159,368  
Unrestricted cash and cash equivalents at the    
  end of the period   $ 70,165   $ 140,303   $ 68,473  
 
Supplemental disclosure of cash flow  
  information:  
Interest paid   $ 32,836   $ --   $ 33,987  
Income taxes paid, net   $ 2,478   $ 281   $ 2,353  

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


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDER'S INVESTMENT
FOR THE PERIOD JANUARY 1, 2002 - MARCH 30, 2002
(Dollar amounts in thousands)





Addi- Accumulated
Special tional Other
Common Common Paid in Retained Treasury Comprehensive