EX-99 2 newsrelease.htm PRESS RELEASE Steiner Leisure Limited Announces Third Quarter 2012 Financial Results

EXHIBIT 99.1

Steiner Leisure Limited Announces Third Quarter 2012 Financial Results

NASSAU, The Bahamas, Oct. 24, 2012 (GLOBE NEWSWIRE) -- Steiner Leisure Limited (Nasdaq:STNR) today announced financial results for the third quarter and nine months ended September 30, 2012.

Steiner Leisure's revenues for the third quarter ended September 30, 2012 increased 14.0% to $204.4 million from $179.4 million during the comparable quarter in 2011. Net income for the third quarter of 2012 was $12.6 million compared with $11.8 million for the same quarter in 2011.

Earnings per share for the third quarter ended September 30, 2012 was $0.85 per share compared with $0.77 per share for the comparable quarter of 2011. The earnings per share data are presented on a diluted basis.

Revenues for the nine months ended September 30, 2012 increased 16.4% to $600.4 million from $515.7 million during the comparable nine months in 2011. Net income for the nine months ended September 30, 2012 was $41.3 million compared with $38.6 million for the same nine months in 2011.

Earnings per share for the nine months ended September 30, 2012 was $2.72 per share compared with $2.54 per share for the comparable nine months in 2011. The above earnings per share data are presented on a diluted basis.

Steiner Leisure Limited is a worldwide provider and innovator in the fields of beauty, wellness and education. We are dedicated to maintaining the highest quality standards and continually evolving to include and anticipate new developments within our industry. We aim to maintain and expand our existing diverse portfolio of services, products and brands, as well as to seek out new opportunities to complement our business.

Our services include traditional and alternative massage, body and skin treatment options, fitness, acupuncture, herbal medicine, medi-spa treatments and laser hair removal. We are committed to providing our customers with a wide-ranging assortment of beauty products, including premium quality options developed by us under our own brands, as well as those purchased from third parties.

Our distribution channels include our shipboard and land-based spas and salons, destination spas, health clubs, department stores and third party retail outlets and distributors. We also sell our products on certain British Airways flights, on QVC, by catalog, and online through our websites, including www.timetospa.com and www.blissworld.com.

Our post secondary schools offer programs in massage therapy and skin care, among others, and, along with our recruiting and training operations, prepare spa professionals for careers in the health and wellness industry, including within the Steiner family of companies.

Our cruise line operations are conducted in spas onboard 157 ships, including Azamara Club Cruises, Carnival Cruise Lines, Celebrity Cruises, Crystal Cruises, Cunard Cruise Line, Holland America Line, Norwegian Cruise Line, P&O Cruises, Princess Cruises, Royal Caribbean Cruises, Seabourn Cruise Lines, Silversea Cruises, Thomson Cruises and Windstar Cruises.

Our land-based spa operations are carried out under our Elemis®, Mandara®, Chavana®, Bliss® and Remède® brands and take place in 69 locations, including resort spas, urban hotel spas and day spas. In addition, a total of 28 resort and hotel spas are operated under our brands by third parties pursuant to license agreements with the company. Our land-based customers include Caesar's Entertainment, Hilton Hotels, InterContinental Hotels and Resorts, Kerzner International, Loews Hotels, Marriott Hotels, Nikko Hotels, Planet Hollywood, Sofitel Luxury Hotels, St. Regis Hotels, W Hotels and Resorts and Westin Hotels and Resorts.

Our Ideal Image customized laser hair removal services are provided by highly trained, experienced practitioners through a nationwide network of 94 treatment centers (17 of which are operated by franchisees) across 29 states.

We develop and sell a variety of high quality beauty products under our Elemis, La Thérapie™, Bliss, Remède, Laboratoire Remède® and Jou® brands.

Our schools operations consist of 12 post secondary schools (comprised of a total of 31 campuses) located in Phoenix, Scottsdale, Tempe and Tucson, Arizona; Westminster and Aurora, Colorado; Groton, Newington and Westport, Connecticut; Miami, Orlando, Pompano Beach, Sarasota and Tampa/St. Pete, Florida; Chicago, Crystal Lake and Woodridge, Illinois; Baltimore, Maryland; Boston, Massachusetts; Las Vegas, Nevada; Hoboken and Wall, New Jersey; King of Prussia and York, Pennsylvania; Dallas and Houston, Texas; Salt Lake City and Lindon, Utah; Charlottesville, Virginia; and Federal Way and Seattle, Washington. Offering programs in massage therapy and, in some cases, skin care, these schools train and qualify spa professionals for health and beauty positions within the industry, including our own operations.

As part of our employee recruitment operations for our shipboard spas, we provide education to our shipboard employees through our rigorous training programs, at our primary training facilities near London, England or one of our satellite training centers in South Africa and the Philippines. These employees are sourced primarily from the British Isles, Australia, South Africa, Southeast Asia, Canada, the Caribbean and continental Europe.

The Company will be holding a conference call at 11:00 am (ET) on Thursday, October 25, 2012. Clive E. Warshaw, Chairman of the Board, and Leonard I. Fluxman, President and Chief Executive Officer, will discuss the contents of this press release.

If you wish to participate in this conference call, please call (517) 308-9020 for domestic and international calls approximately five minutes before the scheduled time. The password is "Steiner." The call is available for replay from Thursday, October 25, 2012 (approximately 3 hours after the call takes place) through Thursday, November 1, 2012 at approximately 5:00 pm (ET). You may reach it by dialing (203) 369-1738 for both domestic and international calls.

         
         
SELECTED FINANCIAL DATA
($ and shares in thousands, except per share data)
(Unaudited)
         
  Third Quarter Ended
September 30,
Nine Months Ended
September 30,
  2012(1) 2011 2012(1) 2011
Revenues:        
 Services  $ 144,664  $ 119,255  $ 426,909  $ 344,999
 Products 59,724 60,101 173,493 170,748
 Total revenues 204,388 179,356 600,402 515,747
         
Cost of Sales:        
 Cost of services 119,999 97,965 345,363 280,930
 Cost of products 43,186 41,432 122,481 118,876
 Total cost of sales 163,185 139,397 467,844 399,806
 Gross profit 41,203 39,959 132,558 115,941
         
Operating Expenses:        
 Administrative 11,618 12,171 35,309 28,600
 Salary and payroll taxes 13,796 14,142 46,721 42,605
 Total operating expenses 25,414 26,313 82,030 71,205
 Income from operations 15,789 13,646 50,528 44,736
         
Other Income (Expense):        
 Interest expense (1,494) (253) (4,618) (1,578)
 Other income 138 60 476 277
 Total other income (expense) (1,356) (193) (4,142) (1,301)
         
Income before provision for income taxes 14,433 13,453 46,386 43,435
         
Provision for income taxes 1,807 1,681 5,119 4,810
         
Net income  $ 12,626  $ 11,772  $ 41,267  $ 38,625
         
Income per share:        
 Basic  $ 0.86  $ 0.79  $ 2.75  $ 2.58
 Diluted  $ 0.85  $ 0.77  $ 2.72  $ 2.54
         
Weighted average shares outstanding:        
 Basic 14,698 14,978 14,982 14,983
 Diluted 14,901 15,216 15,183 15,210
         
Notes        
(1) Includes the results of operations of Ideal Image and Cortiva Group, Inc. subsequent to their acquisitions in November 2011.
         
         
STATISTICS
         
  Third Quarter Ended
September 30,
Nine Months Ended
September 30,
  2012 2011 2012 2011
         
Average number of ships served1: 156 154 153 150
Spa 114 116 112 114
Non-Spa 42 38 41 36
         
Average total number of staff on ships served: 2,662 2,710 2,653 2,589
Spa 2,277 2,407 2,275 2,303
Non-Spa 385 303 378 286
         
Revenue per staff per day2:  $ 433  $ 434  $ 420  $ 424
Spa  $ 455  $ 448  $ 442  $ 439
Non-Spa  $ 307  $ 320  $ 286  $ 300
         
Average weekly revenues:  $ 51,925  $ 53,358  $ 51,132  $ 51,018
Spa  $ 63,736  $ 64,927  $ 63,042  $ 62,027
Non-Spa  $ 19,784  $ 17,911  $ 18,542  $ 16,523
         
Average number of land-based spas served 3 69 68 69 68
         
Average weekly land-based spas revenues  $ 27,666  $ 27,824  $ 29,339  $ 29,674
         
Total schools revenues  $ 18,935,000  $ 15,712,000  $ 59,614,000  $ 49,550,000
         
Total wholesale and retail product revenues  $ 30,861,000  $ 30,535,000  $ 89,823,000  $ 88,250,000
         
Average number of Ideal Image locations 3,4 71 -- 66 --
         
Average weekly Ideal Image revenues  $ 24,926  $ --   $ 25,875  $ -- 
         
Ideal Image revenues  $ 23,368,000  $ --   $ 66,397,000  $ -- 
         
Ideal Image cash revenues 5  $ 30,522,000  $ 18,797,000  $ 91,950,000  $ 60,656,000
_____________        
         
1 Average number of ships served reflects the fact that during the period ships were in and out of service and, accordingly, the number of ships served during the period varied.
2 Revenue includes all sales of services and products on ships. Staff includes all shipboard employees. Per day refers to each day that a cruise ship is in service.
3 Average number of land-based day spas and Ideal Image locations operated reflects the fact that during the period spas and centers were opened or closed and, accordingly, the number of spas and centers served during the period varied.
4 Excludes 17 centers which are operated by franchisees.
5 This represents revenues on a cash basis for the entire period. We did not own Ideal Image until November 2011.
CONTACT: Leonard I. Fluxman
         President and Chief Executive Officer
         (305) 358-9002, ext. 215