NORTEK INC

CIK:0001216596|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Income Statement [Abstract]
Net Sales	$ 685.1	$ 703.9	$ 1,299.0	$ 1,276.6
Costs and Expenses [Abstract]
Cost of revenues	472.5	505.8	898.9	911.7
Selling, general and administrative expense, net	142.3	147.3	283.8	290.6
Amortization of intangible assets	17.5	16.1	34.6	31.9
Costs and Expenses	632.3	669.2	1,217.3	1,234.2
Operating earnings	52.8	34.7	81.7	42.4
Net interest expense	(23.4)	(24.9)	(47.1)	(52.1)
Loss from debt retirement	0.0	(14.8)	0.0	(14.8)
Earnings (loss) before provision (benefit) for income taxes	29.4	(5.0)	34.6	(24.5)
Provision (benefit) for income taxes	11.0	(2.7)	13.6	(8.3)
Net earnings (loss)	$ 18.4	$ (2.3)	$ 21.0	$ (16.2)
Basic earnings (loss) per share (in dollars per share)	$ 1.15	$ (0.14)	$ 1.31	$ (1.02)
Diluted earnings (loss) per share (in dollars per share)	$ 1.14	$ (0.14)	$ 1.30	$ (1.02)
Weighted Average Common Shares:
Basic (in shares)	16,006,946	15,953,059	15,995,257	15,931,599
Diluted (in shares)	16,184,094	15,953,059	16,138,072	15,931,599

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015
Cash flows from operating activities:
Net earnings (loss)	$ 21.0	$ (16.2)
Adjustments to reconcile net earnings (loss) to net cash used in operating activities:
Depreciation expense	23.8	24.5
Amortization expense, including increase to cost of revenues for inventory acquired in business combinations	34.6	32.4
Loss from debt retirement	0.0	14.8
Non-cash interest expense, net	1.5	1.3
Non-cash share-based compensation expense	4.4	3.5
Other non-cash charges, net	0.6	1.2
Deferred income tax provision (benefit)	5.6	(15.4)
Changes in certain assets and liabilities, net of effects from acquisitions:
Accounts receivable, net	(42.7)	(96.9)
Inventories	(6.7)	(18.7)
Prepaid and other current assets	(3.3)	(1.2)
Accounts payable	11.2	5.1
Accrued expenses, taxes, and deferred revenue	6.2	(4.3)
Long-term assets, liabilities and other, net	(1.4)	(11.0)
Total adjustments to net earnings (loss)	33.8	(64.7)
Net cash provided by (used in) operating activities	54.8	(80.9)
Cash flows from investing activities:
Capital expenditures	(20.9)	(20.0)
Net cash paid for businesses acquired and dispositions	(1.0)	(51.8)
Net cash paid for equity investments	(4.0)	0.0
Net cash paid for acquisition of intangible assets	(0.9)	0.0
Proceeds from the sale of property and equipment	2.4	0.1
Change in restricted cash and marketable securities	(2.1)	0.1
Other, net	0.9	(0.6)
Net cash used in investing activities	(25.6)	(72.2)
Cash flows from financing activities:
Proceeds from ABL and other borrowings	189.1	284.1
Payment of ABL and other borrowings	(202.0)	(158.0)
Redemption of the 10% Senior Notes due 2018, including redemption premium	0.0	(262.5)
Net proceeds from borrowings under the senior secured term loan facility due 2020	0.0	261.8
Fees paid in connection with debt facilities	(1.0)	(2.7)
Net use from equity transactions	(0.3)	(1.9)
Other, net	0.0	0.1
Net cash (used in) provided by financing activities	(14.2)	120.9
Net change in unrestricted cash and cash equivalents	15.0	(32.2)
Unrestricted cash and cash equivalents at the beginning of the period	24.6	58.4
Unrestricted cash and cash equivalents at the end of the period	$ 39.6	$ 26.2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Jul. 02, 2016	Dec. 31, 2015
Current Assets:
Unrestricted cash and cash equivalents	$ 39.6	$ 24.6
Restricted cash	2.5	0.3
Accounts receivable, less allowances of $3.2 million and $3.6 million, respectively	383.9	340.0
Inventories:
Raw materials	110.8	103.9
Work in process	30.0	26.1
Finished goods	234.2	238.1
Inventory, Net	375.0	368.1
Prepaid expenses	18.1	19.3
Other current assets	12.6	10.9
Tax refunds receivable	10.8	8.2
Total current assets	842.5	771.4
Property and Equipment, at Cost:
Land	17.0	16.9
Buildings and improvements	112.6	108.9
Machinery and equipment	362.0	339.5
Gross property and equipment	491.6	465.3
Less accumulated depreciation	261.7	236.3
Total property and equipment, net	229.9	229.0
Other Assets:
Goodwill	505.5	505.5
Intangible assets, less accumulated amortization of $313.0 million and $278.4 million, respectively	576.7	609.1
Restricted investments	0.8	0.9
Other assets	19.5	14.5
Total other long-term assets	1,102.5	1,130.0
Total Assets	2,174.9	2,130.4
Current Liabilities:
Short-term bank obligations	0.2	0.5
Current maturities of long-term debt	7.0	6.9
Accounts payable	282.5	269.2
Accrued expenses, taxes, and deferred revenue	224.1	214.5
Total current liabilities	513.8	491.1
Other Liabilities:
Deferred income taxes	82.8	76.9
Other	182.5	178.5
Total other long-term liabilities	265.3	255.4
Notes, Mortgage Notes and Obligations Payable, Less Current Maturities	1,359.9	1,371.6
Commitments and Contingencies (Note G)
Stockholders' Investment:
Preferred stock, $0.01 par value, 10,000,000 authorized shares; none issued and outstanding at July 2, 2016 and December 31, 2015	0.0	0.0
Common stock, $0.01 par value, 90,000,000 authorized shares; 17,107,057 shares and 17,041,710 shares issued at July 2, 2016 and December 31, 2015, respectively	0.2	0.2
Additional paid-in capital	260.9	256.8
Accumulated deficit	(122.8)	(143.8)
Accumulated other comprehensive loss	(43.4)	(42.5)
Less: Treasury stock at cost, 794,855 shares and 782,670 shares at July 2, 2016 and December 31, 2015, respectively	(59.0)	(58.4)
Total stockholders' investment	35.9	12.3
Total Liabilities and Stockholders' Investment	$ 2,174.9	$ 2,130.4