Nortek reverses loss in 1Q as revenue grows

ON FRIDAY NORTEK posted increased revenue and reversed a first-quarter loss from a year ago.
ON FRIDAY NORTEK posted increased revenue and reversed a first-quarter loss from a year ago.

PROVIDENCE – Nortek Inc. posted net income of $2.6 million in the first quarter of 2016, an improvement on the $13.9 million loss in the same 2015 period. At the same time, the air management, and residential and commercial technology manufacturer said Friday that net sales for the three months ended April 2 increased 7.2 percent to $613.9 million. Earnings per diluted share totaled 16 cents in the quarter, reversing the 87 cents per share loss a year ago.
Nortek President and CEO Michael J. Clarke said in the earnings release that “we were especially pleased to deliver strong organic net sales growth of 8 percent and organic adjusted EBITDA growth of 30.9% percent over the prior-year-period.”
Adjusted EBITDA is a non-GAAP metric the company uses to remove the impact of restructuring charges, non-recurring gains or losses, acquisition fees or expenses, joint venture gains or losses, foreign exchange losses, depreciation and amortization expenses and share-based compensation expenses. Based on those exclusions to the company’s operations, Nortek posted adjusted EBITDA of $60.2 million, a 30.9 percent increase from $46 million in the 2015 first quarter.
According to the GAAP-based cash flow from operations measure, Nortek reported a drain of $8.5 million in the period, an improvement on a $55.3 million loss in the first three months of 2015.
“Strength was broad-based, with Air Quality, Security, Ergonomics and HVAC all posting double-digit organic net sales growth compared to last year,” said Clarke. “In our HVAC business, we continue to be encouraged by the order trends.”

No posts to display