Nortek ends quarter with $72.4 million cash, cuts debt by $30 million

By Lisa Kerner

Charlotte, N.C., May 11 - Nortek Inc. is "off to a good start in 2012," chief financial officer Al Hall said during the company's first-quarter earnings call on Friday.

The company closed the quarter with $72.4 million of unrestricted cash and cash equivalents, $17 million of outstanding debt under its revolving credit facility and $233.2 million available under its ABL.

Margin improvement and a focus on working capital management resulted in strong cash flow from operations for the quarter, president and chief executive officer Michael J. Clarke said on the call.

"This enabled us to pay down our revolving credit facility by $25 million," Clarke said.

At quarter's end, Nortek elected to pay down an additional $5 million, for a total debt reduction of $30 million.

"Nortek delivered improved results on both the top and bottom lines in the first quarter of 2012, driven primarily by growth in our commercial HVAC segment," Clarke said.

Sales in the commercial HVAC segment grew 39% from the first quarter last year.

Nortek reported net sales of $522.8 million in the first quarter, a 7% increase from $488.6 million in the first quarter of 2011. Acquisitions contributed $4.7 million to net sales for the quarter.

The company reported a net loss for the quarter of $1.2 million, or $0.08 per share, compared with a net loss for the prior-year period of $21.1 million, or $1.40 per share.

Nortek is a Providence, R.I., manufacturer of residential and commercial building products.

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