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Exhibit
99.1
NORTEK
REPORTS
14%
INCREASE IN 2ND-QUARTER
REVENUES
PROVIDENCE,
RI, August 14, 2007—Nortek, Inc. (“Nortek”), a
leading diversified global manufacturer of innovative, branded residential
and
commercial ventilation, HVAC and home technology convenience and security
products, today announced second-quarter financial
results. Nortek reported sales of $644 million and
operating earnings of $64.7 million for the quarter ended June 30,
2007.
Richard
L. Bready, Chairman and Chief Executive Officer said, “We are pleased with
Nortek’s second-quarter performance considering the difficult
market environment.” Mr. Bready said that, “Nortek’s
14-percent growth in net sales for the second quarter was powered by increased
revenues in Nortek’s Home Technology Products and Air
Conditioning and Heating Products Segments. Sales to the built-in
products wholesale channel remain soft due to the weak housing
market. We experienced increased commodity costs during the quarter,
which
have
been partially offset by efficiency programs and price
increases.” Mr. Bready added, “Nortek continued its
strategy of increasing its
brands
and product offerings by completing four acquisitions.”
Key
financial highlights from continuing operations for the second quarter of 2007
included:
As
of
June 30, 2007, Nortek had approximately $75 million in
unrestricted cash, cash equivalents and marketable securities and had $84
million of borrowings outstanding under its revolving credit
facility.
Key
financial highlights from continuing operations for the first half of 2007
included:
On
April 10, 2007, Nortek acquired the assets and certain
liabilities of c.p. Allstar Corporation (“Allstar”) located in Downingtown,
Pennsylvania. Allstar is a manufacturer and distributor of
residential gate operators, garage door openers, radio controls and accessory
products for the garage door and fence industry.
On
June
25, 2007, Nortek acquired International Electronics, Inc.
(“IEI”) through a cash-tender offer. IEI is located in Canton,
Massachusetts and designs and sells security and access-control components
and
systems for use in residential and light commercial applications.
On
July
23, 2007, Nortek acquired the assets and certain liabilities of
Aigis Mechtronics LLC (“Aigis”). Aigis is located in Winston-Salem,
North Carolina and manufactures and sells equipment, such as camera housings,
into the closed-circuit television portion of the global security
market.
On
July
27, 2007, Nortek acquired all of the ownership units of
HomeLogic LLC (“HomeLogic”). HomeLogic is located in Marblehead,
Massachusetts and designs and sells software and hardware that facilitates
the
control of third-party residential subsystems such as home theatre, whole-house
audio, climate control, lighting, security and irrigation.
Nortek*
(a wholly owned subsidiary of Nortek Holdings, Inc., which is a
wholly owned subsidiary of NTK Holdings, Inc.) is a leading
diversified global manufacturer of innovative, branded residential and
commercial ventilation, HVAC and home technology convenience and security
products. Nortek offers a broad array of products
including: range hoods, bath fans, indoor air quality systems, medicine cabinets
and central vacuums, heating and air conditioning systems, and home technology
offerings, including audio, video, access control, security and other
products.
*As
used herein, the term “Nortek” refers to Nortek, Inc., together with its
subsidiaries, unless the context indicates otherwise. This term is used for
convenience only and is not intended as a precise description of any of the
separate corporations, each of which manages its own affairs.
This
press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based
on
Nortek’s current plans and expectations and involve risks and uncertainties that
could cause actual future activities and results of operations to be materially
different from those set forth in the forward-looking statements. Important
factors impacting such forward-looking statements include the availability
and
cost of raw materials and purchased components, the level of construction and
remodeling activity, changes in general economic conditions, the rate of sales
growth and product liability claims. Nortek undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new information,
future events or otherwise. For further information, please refer to the reports
and filings of Nortek with the Securities and Exchange
Commission.
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NORTEK,
INC. AND SUBSIDIARIES
UNAUDITED
CONDENSED CONSOLIDATED SUMMARY OF OPERATIONS
The
accompanying notes are an integral part of this unaudited condensed consolidated
summary of operations.
During
the first six months ended June 30, 2007 and July 1, 2006, the Company’s results
of operations include the following (income) and expense items recorded in
cost
of products sold and selling, general and administrative expense, net in
the
accompanying unaudited condensed consolidated summary of
operations:
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