(Mark One)

X

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2004

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

to

.  

Delaware

36-2852993

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1300 S. Wolf Road
P.0. Box 5065
Des Plaines, Illinois

60017-5065

(Address of principal executive offices)

(Zip code) 

Registrant's telephone number, including area code:

(847) 827-9880

ITEM 1. FINANCIAL STATEMENTS

JUNO LIGHTING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

May 31,

November 30,

2004

2003

(Unaudited)

(Unaudited)

Assets

Current Assets:

     Cash

$

29,083

$

1,702

     Accounts receivable, less allowance for doubtful accounts of $1,063

     and $990

43,471

38,871

     Inventories

24,269

21,972

     Prepaid expenses and miscellaneous current assets

4,911

5,403

               Total current assets

67,948

Property and equipment:

     Land

7,349

7,381

     Building and improvements

34,070

33,898

     Tools and dies

13,967

13,464

     Machinery and equipment

8,725

8,477

     Computer equipment

9,718

9,267

     Office furniture and equipment

3,728

3,646

77,557

76,133

Less accumulated depreciation and amortization

(36,936

)

(34,991

)

               Net property and equipment

40,621

41,142

Other assets:

     Goodwill

14,980

15,249

     Deferred financing costs, net of accumulated amortization of $3,125

      and $5,402

5,723

4,615

     Miscellaneous other assets

2,932

3,010

               Total other assets

23,635

22,874

Total assets

$

165,990

$

131,964

Liabilities and Stockholders' Deficit

Current Liabilities:

   Accounts payable

$

17,215

$ 

12,258

   Accrued liabilities

17,514

18,681

   Short term borrowings

-

5,700

   Current maturities of long-term debt

124,426

2,919

   Total current liabilities

159,155

39,558

Long-term debt, less current maturities

50,000

144,734

Deferred income taxes payable

2,845

3,116

Commitments and Contingencies

Redeemable preferred stock, Series A and B convertible $.001

     par value; $100 stated value; 5,000,000 shares

     authorized and 1,063,500 shares issued

157,982

151,847

Stockholders' Deficit

  Common stock, $.001 par value;

     Shares authorized 45,000,000;

     Issued 2,637,635 and 2,582,939

3

3

  Paid-in capital

2,758

1,726

  Accumulated other comprehensive income

445

1,312

  Shareholder note receivable

(200

)

(200

)

  Accumulated deficit

(206,998

)

(210,132

)

  Total stockholders' deficit

(203,992

)

(207,291

)

Total liabilities, redeemable preferred stock and stockholders' deficit

$

165,990

$

131,964

JUNO LIGHTING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except for share amounts)

Three Months Ended

May 31,

May 31,

2004

2003

(Unaudited)

(Unaudited)

Net sales

$

64,082

$

49,981

Cost of sales

31,781

24,532

Gross profit

32,301

25,449

Selling, general and administrative expenses

17,949

14,964

   Operating income

14,352

10,485

Other income (expense):

   Interest expense

(4,662

)

(4,025

)

   Interest and dividend income

2

4

   Unrealized (loss) gain on interest rate swap

(539

)

427

   Miscellaneous

13

40

          Total other expense

(5,186

)

(3,554

)

Income before taxes on income

9,166

6,931

Taxes on income

3,427

2,633

Net income

5,739

4,298

Less: preferred dividends

3,098

2,861

Net income available to common shareholders

$

2,641

$

1,437

Net income per common share basic

$

1.01

$

.57

Net income per common share diluted

$

.65

$

.57

JUNO LIGHTING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands except for share amounts)

Six Months Ended

May 31,

May 31,

2004

2003

(Unaudited)

(Unaudited)

Net sales

$

114,973

$

93,504

Cost of sales

57,321

46,651

Gross profit

57,652

46,853

Selling, general and administrative expenses

34,213

29,147

   Operating income

23,439

17,706

Other income (expense):

   Interest expense

(8,291

)

(8,134

)

   Interest and dividend income

6

7

   Unrealized (loss) gain on interest rate swap

(429

)

1,690

   Miscellaneous

47

56

          Total other expense

(8,667

)

(6,381

)

Income before taxes on income

14,772

11,325

Taxes on income

5,503

4,209

Net income

9,269

7,116

Less: preferred dividends

6,135

5,667

Net income available to common shareholders

$

3,134

$

1,449

Net income per common share basic

$

1.20

$

.57

Net income per common share diluted

$

1.06

$

.57

(in thousands)

Common Stock

Accumulated

Retained

Other

Shareholder

Earnings/

Amount

Paid-In Capital

Comprehensive

Note

(Accumulated

Total

$.001 PAR

Income (Loss)

Receivable

Deficit)

Balance, November 30, 2003

$

3

$

1,726

$

1,312

$

(200

)

$

(210,132

)

$

(207,291

)

Comprehensive income:

   Net income for six months ended May 31, 2004

-

-

-

-

9,269

9,269

   Loss on foreign currency translation

-

-

(867

)

-

-

(867)

   Comprehensive income

-

-

-

-

-

8,402

   Exercise of stock options

-

1,032

-

-

-

1,032

   Preferred stock dividend

-

-

-

-

(6,135

)

(6,135

)