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 October 4, 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 November 13, 2003 was 100.




NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET

October 4, December 31,
2003
 2002
(Amounts in thousands)
(Unaudited)
 
Assets            
Current Assets:  
Unrestricted:  
  Cash and cash equivalents   $ 121,026   $ 294,804  
Restricted:  
  Cash, investments and marketable securities at cost,    
    which approximates market    1,538    4,340  
Accounts receivable, less allowances  
  of $15,094,000 and $13,132,000    301,037    225,632  
Inventories:  
  Raw materials    79,435    72,702  
  Work in process    23,770    19,719  
  Finished goods    108,121    83,464  
     211,326    175,885  
 
Prepaid expenses    13,121    15,523  
Other current assets    19,019    10,770  
Prepaid income taxes    31,570    27,064  
      Total current assets    698,637    754,018  
 
Property and Equipment, at Cost:  
Land    23,861    14,126  
Buildings and improvements    119,109    134,619  
Machinery and equipment    256,309    358,066  
     399,279    506,811  
Less accumulated depreciation    21,973    239,818  
      Total property and equipment, net    377,306    266,993  
 
Other Assets:  
Goodwill    844,023    551,162  
Intangible assets, less accumulated amortization  
  of $8,938,000 and $34,010,000       174,717     109,915  
Deferred debt expense    3,194    19,687  
Restricted investments and marketable securities held  
  by pension trusts    --    76,503  
Other    18,776    42,666  
     1,040,710    799,933  
    $ 2,116,653   $ 1,820,944  
 
Liabilities and Stockholder's Investment  
Current Liabilities:  
Notes payable and other short-term obligations   $ 4,584   $ 3,338  
Current maturities of long-term debt    4,309    3,449  
Accounts payable    150,089    126,400  
Accrued expenses and taxes, net    188,149    169,746  
      Total current liabilities    347,131    302,933  
 
Other Liabilities:  
Deferred income taxes    87,300    21,625  
Other    159,067    195,249  
     246,367    216,874  
 
Notes, Mortgage Notes and Obligations    
  Payable, Less Current Maturities    1,005,317    983,632  
 
Stockholder's Investment:  
Common stock, $.01 par value; authorized 100 shares,  
   100 shares issued and outstanding at October 4, 2003 and  
   December 31, 2002    --    --  
Additional paid-in capital    441,845    119,621  
Retained earnings    62,500    255,366  
Accumulated other comprehensive income (loss)    13,493    (57,482 )
      Total stockholder's investment    517,838    317,505  
    $ 2,116,653   $ 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

For The
Three Months Ended
Post- Pre-
Recapitalization
 Recapitalization
October 4, September 28,
2003
 2002
(Amounts in thousands)
(Unaudited)
 
Net Sales     $ 555,102   $ 504,583  
 
Costs and Expenses:  
  Cost of products sold    393,032    365,726  
  Selling, general and administrative expenses, net    84,495    83,449  
  Amortization of intangible assets    3,055    1,467  
  Expenses and charges arising from the Recapitalization    --    1,000  
     480,582    451,642  
 
Operating earnings    74,520    52,941  
Interest expense    (22,838 )  (23,993 )
Investment income    318    1,852  
Earnings from continuing operations before provision  
   for income taxes    52,000    30,800  
Provision for income taxes    21,900    14,200  
Earnings from continuing operations    30,100    16,600  
Earnings from discontinued operations    --    100  
Net earnings   $ 30,100   $ 16,700  

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


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For the Periods
Post-
Recapitalization
 Pre-Recapitalization
Jan. 10, 2003 - Jan. 1, 2003 - Jan. 1, 2002 -
Oct. 4, 2003
 Jan. 9, 2003
 Sept. 28, 2002
(Amounts in thousands)
(Unaudited)
 
Net Sales     $ 1,534,806   $ 33,775   $ 1,451,514  
 
Costs and Expenses:  
   Cost of products sold    1,107,189    26,286    1,044,940  
   Selling, general and administrative expense    242,999    6,485    244,040  
   Amortization of intangible assets    8,956    137    4,459  
   Expenses and charges arising from the  
       Recapitalization    --    87,700    6,200  
     1,359,144    120,608    1,299,639  
 
Operating earnings (loss)    175,662    (86,833 )  151,875  
Interest expense    (71,039 )  (2,288 )  (72,383 )
Investment income    1,077    121    5,508  
Earnings (loss) from continuing operations  
   before provision (benefit) for income taxes    105,700    (89,000 )  85,000  
Provision (benefit) for income taxes    43,200    (24,100 )  35,700  
Earnings (loss) from continuing operations    62,500    (64,900 )  49,300  
Earnings from discontinued operations    --    --    5,700  
Net earnings (loss)   $ 62,500   $ (64,900 ) $ 55,000  

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


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the Periods
Post-
Recapitalization
 Pre-Recapitalization
Jan. 10, 2003 - Jan. 1, 2003 - Jan. 1, 2002 -
Oct. 4, 2003
 Jan. 9, 2003
 Sept. 28, 2002
(Amounts in thousands)
(Unaudited)
 
Cash Flows from operating activities:                
Net earnings (loss) from continuing operations   $ 62,500   $ (64,900 ) $ 49,300  
Earnings from discontinued operations    --    --    5,700  
Net earnings (loss)    62,500    (64,900 )  55,000  
 
Adjustments to reconcile net earnings (loss)  
  to cash:  
Depreciation and amortization expense    28,362    968    32,605  
Non-cash write-off of inventory    6,685    --    --  
Non-cash interest expense, net (including $4,100,000 from  
     post-Recapitalization amortization of the Bridge Facility  
     commitment fees and expenses)    3,273    131    1,864  
Gain on the sale of a discontinued business    --    --    (5,400 )
Deferred federal income tax provision (credit)    34,700    (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    (61,940 )  2,749    (53,473 )
Inventories    (12,202 )  (3,444 )  2,065  
Prepaids and other current assets    861    204    1,180  
Net assets of discontinued operations    --    --    (1,696 )
Accounts payable    14,915    957    13,389  
Accrued expenses and taxes    (10,553 )  10,648    37,773  
Long-term assets, liabilities and other, net    (94 )  5,578    8,281  
    Total adjustments to net earnings (loss)    4,007    59,288    36,588  
    Net cash provided by (used in) operating activities   $ 66,507   $ (5,612 ) $ 91,588  
 
Cash Flows from investing activities:  
Capital expenditures   $ (14,459 ) $ (556 ) $ (16,009 )
Net cash paid for businesses acquired    (73,356 )  --    --  
Purchase of investments and marketable securities    (30,015 )  --    (306,210 )
Proceeds from the sale of investments and  
  marketable securities    30,015    --    291,071  
Proceeds from the sale of a discontinued business    --    --    20,816  
Change in restricted cash and investments    2,789    (48 )  (2,247 )
Other, net    (632 )  157    (4,808 )
  Net cash used in investing activities    (85,658 )  (447 )  (17,387 )
Cash Flows from financing activities:  
Change in borrowings, net