Juno Lighting 8-K Juno Lighting, Inc. Announces Strong Fourth Quarter and Full Year Results

FOR IMMEDIATE RELEASE

Contact:  George Bilek
847-827-9880

JUNO LIGHTING, INC.
ANNOUNCES STRONG FOURTH QUARTER AND FULL YEAR RESULTS

Des Plaines, IL, January 24, 2005... Juno Lighting, Inc. (NASDAQ-JUNO) announced that for the quarter ended November 30, 2004 sales increased 16.0% to $63,825,000 compared to fourth quarter 2003 sales of $55,029,000 as the Company achieved solid growth in all distribution channels. Operating earnings for the fourth quarter of 2004 increased 12.8% to $13,019020,000 compared to $11,546,000 for the prior year's fourth quarter. as extraordinary inflation in rRaw material inflations resulted in approximately $1,180,001.20 million of margin compression compared to the fourth quarter of 2003.over and above the positive impact of the May 2004 price increase. Net income available to common shareholders for the fourth quarter of 2004 was approximately $2,272,000 ($0.82 per common share on a basic and $0.75 on a diluted basis), compared to net income available to common shareholders of $1,64129,000 ($0.64 per common share on a basic and $0.63 on a diluted basis) for the like period in 2003.

Sales for the full fiscal year 2004 increased 20.6% to $241,965,000 compared to $200,566,000 for the like period in 2003 with sales increases noted across all brands and in every market served by Juno. Operating earnings for fiscal 2004 increased 27.3% to $50,401,000 compared to $39,602,000 for fiscal 2003 as leverage from significant sales growth and continued productivity gains from operations allowed the Company to partially offset raw material price increases of approximately $1.6 million and maintain its margin levelinflation. However, since the Company continues to experience increased prices for its raw materials, and in particular steel and aluminum, it has implemented a price increase of approximately 7% across all major brands effective December 1, 2004. Net income available to common shareholders for 2004 was approximately $3,606,000 ($1.34 per common share on a basic and $1.26 on a diluted basis), compared to net income available to common shareholders of $5,35215,000 ($2.109 per common sha re on a basic and diluted basis) for the like period in 2003.

As a result of the refinancing of the Company's Senior Credit Facility completed in July 2004 and related matters, one-time charges of approximately $11,809,000 were recorded in the twelve month period ended November 30, 2004. One-time charges related to the previously existing credit facility include a $3,965,000 non-cash charge to write-off unamortized financing costs associated with the retired credit facility and the payment of a $7,422,000 call premium. Excluding these one-time charges, earnings per share would have been $2.70 on a basic and $2.53 on a diluted basis for the twelve months ended November 30, 2004.

President & CEO Tracy Bilbrough commented: "We are pleased to report our sixth consecutive quarter of double-digit organic sales growth. Despite the extraordinary raw material inflation, especially in metals, that we experienced in 2004, our continued focus on productivity in our operations, on launching profitable new products, and on achieving strong sales growth has allowed us to deliver an over 27% increase in our full year operating earnings".

The Company will conduct a conference call on January 24, 2005 at 3:30 p.m. Central Standard Time. Those interested may listen to the call by dialing 888-730-9137, pass code "JUNO" and leader "George Bilek". A replay of the conference call will be available from 6:00 PM (Central) January 24, 2005 to 5:00 PM January 31, 2005 by dialing (866) 463-2180 (U.S.) and (203) 369-1377 (Int'l), pass code 54231.

Juno Lighting, Inc. is a leader in the design, manufacturing, and marketing of lighting fixtures for commercial and residential use. This press release contains various forward-looking statements that are not statements of historical events. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to vary materially from those stated, indicated or expected. Such risks and uncertainties include: economic conditions generally, levels of construction and remodeling activities, our ability to improve manufacturing efficiencies, disruptions in manufacturing or distribution, product and price competition, raw material prices, our ability to develop and successfully introduce new products, consumer acceptance of such new products, the ability of our new products to perform as designed when utilized by consumers, technology changes, patent issues, exchange rate fluctuations, and other risks and uncertainties. Juno undertakes no obligation to update any such f actors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		(in thousands except for share amounts)
			Three Months Ended						Twelve Months Ended
			Nov. 30			Nov. 30			Nov. 30			Nov. 30
			2004			2003			2004			2003
Net sales	$		63,825		$	55,029		$	241,965		$	200,566
Cost of sales			32,532			27,364			121,091			99,933
Gross profit			31,293			27,665			120,874			100,633
Selling, general and administrative expenses			18,273			16,119			70,473			61,031
Operating income			13,020			11,546			50,401			39,602
Other income (expense):
Interest expense			(3,360	)		(3,683	)		(14,861	)		(15,605	)
Senior subordinated note call premium			-			-			(7,422	)		-
Write off of remaining deferred financing fees
on retired debt			-			-			(3,965	)		-
Unrealized gain (loss) on interest rate swap			-			227			(358	)		422
Gain on foreign currency translation			1,683			-			1,683			-
Miscellaneous			32			20			201			205
Total other (expense)			(1,645	)		(3,436	)		(24,722	)		(14,978	)
Income before taxes on income			11,375			8,110			25,679			24,624
Taxes on income			4,046			2,843			9,510			7,693
Net income			7,329			5,267			16,169			16,931
Less: preferred dividends			5,057			3,638			12,563			11,616
Net income available to common shareholders	$		2,272		$	1,629		$	3,606		$	5,315
Net income per common share (A)
Basic	$		.82		$	.64	(A)	$	1.34		$	2.09	(A)
Diluted	$		.75		$	.63	(A)	$	1.26		$	2.09	(A)
Average number of outstanding shares
Basic			2,786,586			2,565,614			2,682,786			2,545,298
Diluted			3,014,890			2,574,329			2,865,620			2,545,298
EBITDA (B)			13,923			13,221			54,786			46,099

(A	)	Net Income per common share is reported in compliance with EITF 03-06, effective for quarters ending after June 30, 2004. Prior period net income per share amounts have been restated in accordance with EITF 03-06 resulting in reductions of previously reported net income per share for the fourth quarter of 2003 of $0.25 on a basic and and $0.26 on a diluted basis and for the twelve months ended November 30, 2003 of $0.012 per share on a basic and diluted basis.
(B	)	EBITDA represents earnings before (a) taxes on income, (b) interest expense, (c) interest, dividend, and other miscellaneous income, (d) depreciation and amortization, (e) deferred compensation and (f) other non-cash charges. The non-cash charges referred to in the above reconciliation primarily related to the amortization of a step up in the inventory value of an acquired subsidiary. EBITDA is not a calculation prepared in accordance with generally accepted accounting principles and, because all companies do not calculate EBITDA identically, the presentation of EBITDA herein is not necessarily comparable to similarly entitled measures of other companies. The reconciliation of EBITDA is set forth in the table below. Additionally, EBITDA is not intended to represent and should not be considered more meaningful than, or an alternative to, measures of operating performance as determined in accordance with generally accepted accounting principles. However, EBITDA data are included because ma nagement understands that such information is considered by certain investors as an additional basis on which to evaluate Juno's ability to pay interest, repay debt and make capital expenditures. We also use EBITDA as an integral part of internal reporting to evaluate management team performance and to monitor compliance with certain financial covenants in our credit agreements.

EBITDA reconciliation (unaudited)
	Three Months Ended					Twelve Months Ended
(In thousands)	Nov. 30,			Nov. 30,		Nov. 30,		Nov. 30,
	2004			2003		2004		2003
Net income		$7,329		$5,267		$16,169		$16,931
Add back (subtract):
Income taxes		4,046		2,843		9,510		7,693
Interest expense (YTD 2004 amount includes write-off of
Deferred financing costs and sub-debt call premium
totaling $11,387)		3,360		3,683		26,248		15,605
Loss (gain) on interest rate swap		-		(227	)	358		(422	)
Gain on foreign currency translation		(1,683	)	-		(1,683	)	-
Interest, r and oyalty and miscellaneous income		(32	)	(20	)	(201	)	(205	)
Depreciation and amortization		895		1,562		4,377		5,935
Deferred compensation and other non-cash charges		8		113		8		562
EBITDA	$13,923			$13,221		$54,786		$46,099

Earnings per share reconciliation (unaudited)
	Three Months Ended				Twelve Months Ended
(In thousands except share amounts)	Nov. 30,			Nov. 30,	Nov. 30,	Nov. 30,
	2004			2003	2004	2003
One-time charges, net of estimated taxes of $4,498			-	-	$7,311	-
Basic earnings per share:
Net income as reported		$7,329		$5,267	$16,169	$16,931
One time charges		-		-	7,311	-
Net income before certain one-time charges		$7,6329,302		$5,267	$23,480	$16,931
Shares outstanding basic:
Common		2,786,586		2,565,614	2,682,786	2,545,298
Preferred shares as converted		6,202,004		5,727,930	6,020,840	5,562,097
Total shares outstanding basic		8,988,590		8,293,544	8,703,626	8,107,395
Earnings per share as reported basic		$0.82		$0.64	$1.34	$2.1009
Per share impact of one-time charges basic		-		-	1.356	-
Earnings per share before certain one-time charges basic		$0.82		$0.64	$2.70	$2.1009

Earnings per share reconciliation (unaudited) CONTINUED
	Three Months Ended		Twelve Months Ended
(In thousands except share amounts)	Nov. 30,	Nov. 30,	Nov. 30,	Nov. 30,
	2004	2003	2004	2003
Diluted earnings per share:
Net income as reported	$7,329	$5,267	$16,169	$16,931
One-time charges	-	-	7,311	-
Net income before certain one-time charges	$6,3027,329	$5,267	$23,480	$16,931
Average shares outstanding:
Common	2,786,586	2,565,614	2,682,786	2,545,298
Preferred shares as converted	6,202,004	5,727,930	6,020,840	5,562,097
Total average shares outstanding	8,988,590	8,293,544	8,703,626	8,107,395
Earnings per share before certain one-time charges	$0.82	$0.643	$2.70	$2.1009
Net Income attributable to common shares	$2,272	$1,64129	$7,237	$5,3152
Average common shares outstanding diluted	3,014,890	2,574,329	2,865,620	2,545,298
Earnings per share as reported diluted	$0.75	$0.643	$1.26	$2.1009
Per share impact of one-time charges diluted	-	-	1.27	-
Earnings per share before certain one-time charges diluted	$0.75	$0.643	$2.53	$2.1009

Earnings per share before certain one-time charges has been presented because management believes that it is important for investors to understand the operating earnings of the business excluding charges related to the refinancing of company debt and changes to its capital structure.

JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
		(in thousands)
		November 30,			November 30,
		2004			2003
		(Unaudited)
Assets
Current assets:
Cash	$	2,362		$	1,702
Accounts receivable, less customer allowances of $1,060
and $990		42,350			38,871
Inventories		27,049			21,972
Prepaid expenses and other current assets		4,161			5,403
Total current assets		75,922			67,948
Property and equipment, net		40,202			41,142
Other assets:
Goodwill		18,690			15,083
Intangibles, net of accumulated amortization of $1,796
and $7,002		5,125			7,546
Miscellaneous other assets		419			245
Total other assets		24,234			22,874
Total assets	$	140,358		$	131,964
Liabilities and stockholders' deficit
Current liabilities:
Accounts payable	$	17,019		$	12,258
Accrued liabilities		16,420			18,681
Short term borrowings		2,500			5,700
Current maturities of long-term debt		1,650			2,919
Total current liabilities		37,589			39,558
Long-term debt, less current maturities		194,438			144,734
Deferred income taxes payable		4,027			3,116
Preferred dividend payable		6,428			-
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, stated at redemption value		116,876			151,847
Stockholders' deficit
Common stock, $.001 par value;
Shares authorized 45,000,000;
Issued 2,761,460 and 2,582,939		3			3
Paid-in capital		1,305			1,726
Accumulated other comprehensive income		560			1,312
Stockholder note receivable		(200	)		(200	)
Accumulated deficit		(220,668	)		(210,132	)
Total stockholders' deficit		(219,000	)		(207,291	)
Total liabilities, redeemable preferred stock and stockholders' deficit	$	140,358		$	131,964

JUNO LIGHTING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	(in thousands)
	Twelve Months Ended
	Nov. 30,					Nov. 30,
	2004					2003
Cash flows provided by operating activities:
Net income			$	165,169142				$	16,931
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,153					5,935
Unrealized loss (gain) on interest rate swap		358					(422			)
Increase in allowances		70					64
Deferred income taxes		(845106			)		270
Deferred compensation		8					-
Write-off of remaining deferred financing fees on retired debt and discount          on retired subordinated debt		4,565					-
Tax benefit on stock options exercised		457					-
Changes in operating assets and liabilities:
(Increase) in accounts receivable		(3,575			)		(6,710			)
(Increase) decrease in inventories		(5,104			)		898
Decrease (increase) in prepaid expenses and miscellaneous		7701,608					(1,077			)
(Increase) in other assets		(21,058			)		340
Increase in accounts payable and accrued liabilities		2,600					1,979
Net cash provided by operating activities		21,357					18,208
Cash flows used in investing activities:
Capital expenditures		(2,702			)		(3,178			)
Acquisition of Alfa Lighting		(3,103			)		(2,138			)
Net cash used in investing activities		(5,805			)		(5,316			)
Cash flows used in financing activities:
Principal payments on long-term debt, including the revolver and bank debt		(218,688			)		(84,630			)
Proceeds from bank debt, including the revolver		261,904					71,550
Debt refinancing costs		(2,716			)		-
Dividends paid		(59,945			)		-
Proceeds from issuances of common stock		331					245
Proceeds from exercise of stock options		3,480					424
Net cash used in financing activities		(15,634			)		(12,411			)
Effect of exchange rate changes on cash		742					-
Net increase in cash		660					481
Cash at beginning of period		1,702					1,221
Cash at end of period			$	2,362				$	1,702
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest			$	20,419				$	15,733
Income taxes		10,078					9,254