Providence-based Nortek, Inc., an international designer, manufacturer and marketer of
branded building products, announced record sales from continuing
operations for 2004 and the fourth quarter in strong housing and home
improvement markets.
Nortek 2004 combined financial results were based on record sales from
continuing operations totaling $1,679 million, an increase of 11.5 percent
over 2003. Sales increased in every quarter throughout the year. Despite
higher costs for raw materials and shipping, Nortek achieved combined
operating earnings for 2004 totaling $74.7 million, down $2.9 million from
2003.
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“Nortek’s core residential housing and
home improvement markets remained vigorous as we entered 2005. During 2004,
Nortek initiated some price increases and continued aggressive cost savings to
partially offset higher raw materials and shipping costs,” Richard L. Bready, Chairman and Chief Executive Officer, said.
On August 27, 2004, affiliates of Thomas H. Lee Partners L.P., in
partnership with certain members of Nortek’s management purchased all of the
outstanding capital stock of Nortek’s parent company, the former Nortek
Holdings, Inc. (“Nortek Holdings”), in a transaction valued at approximately
$1.74 billion before fees and expenses from affiliates
of Kelso and Company L.P. and certain other parties.
Nortek’s new capitalization includes $625 million 8 1/2% Senior
Subordinated Notes due 2014 and a $698 million bank term loan due 2011. In
addition, as of December 31, 2004, Nortek had approximately $95 million in
unrestricted cash and cash equivalents and has no borrowings outstanding under
its $100 million revolving credit facility.
