EX-99 3 exhibit99feb2004.htm STEINER LEISURE LIMITED

Exhibit 99

STEINER LEISURE LIMITED
Post Office Box N-9306
Suite 104A
Nassau, The Bahamas

For Release: IMMEDIATELY

Contact:    Leonard I. Fluxman, President and Chief Executive Officer (305) 358-9002, ext. 215

Steiner Leisure Limited Announces Fourth Quarter and 2003 Financial Results

NASSAU, THE BAHAMAS, February 26, 2004 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2003.

Steiner Leisure's revenues for the fourth quarter ended December 31, 2003 rose 16.5% to $74.6 million from $64.0 million during the comparable quarter in 2002 (excluding our discontinued day spa operations). Income from continuing operations, before discontinued operations and cumulative effect of a change in accounting principle for the fourth quarter, was $6.5 million compared with $4.6 million for the same quarter in 2002.

Earnings per share before discontinued operations and cumulative effect of a change in accounting principle for the fourth quarter ended December 31, 2003 was $0.39 per share, compared with $0.29 per share for the comparable quarter in 2002. The earnings per share data are presented on a diluted basis.

Revenues for the year ended December 31, 2003, rose 12.3% to $280.6 million from $249.8 million in 2002 (excluding our discontinued day spa operations). Income from continuing operations, before discontinued operations and cumulative effect of a change in accounting principle for the year ended December 31, 2003 was $24.0 million compared with $21.6 million in 2002.

Earnings per share before discontinued operations and cumulative effect of a change in accounting principle for the year ended December 31, 2003 was $1.44 per share, compared with $1.33 per share in 2002. The earnings per share data are presented on a diluted basis.

Leonard I. Fluxman, President and Chief Executive Officer of Steiner Leisure, commented "We continued to see strong execution and performance in each of our segments in the fourth quarter. We are pleased with our earnings growth and strong cash flow generated in 2003".

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 109 cruise ships, and in 59 resort spas and two luxury day spas. Our cruise line and land-based resort customers include Carnival Cruise Line, Celebrity Cruises, Crystal Cruises, Disney Cruises, Holland America Lines, Kerzner International, Marriott, Norwegian Cruise Lines, Park Place Entertainment, Princess Cruises and Royal Caribbean Cruise Lines. Our Elemis Limited subsidiary manufactures its Elemis® brand products for use in our cruise ship and land-based spas. This top quality European line of beauty products is also distributed worldwide to exclusive hotels, salons, health clubs and destination spas. Elemis®, as well as other Steiner private label products, including La Therapie®, Ionithermie, and Steiner Hair Care, are available at www.timetospa.com.

Steiner Leisure also owns and operates three post secondary schools (comprised of a total of seven campuses) located in Miami, Fort Lauderdale, Orlando and Sarasota, Florida; Baltimore, Maryland; York, Pennsylvania and Charlottesville, Virginia. Offering degree and non-degree programs in massage therapy and skin care, these schools train and qualify spa professionals for health and beauty positions within the Steiner family of companies or other industry entities.

The Company will be holding a conference call at 11:00 am (EST) on Friday, February 27, 2004. 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 (706) 679-5917 for domestic and international calls approximately ten minutes before the scheduled time and the moderator is Clive Warshaw. This call is available for replay from Friday, February 27, 2004 (approximately 3 hours after the call takes place) until Friday, March 5, 2004 at 5:00 pm. You may reach it by dialing (706) 645-9291 for both domestic and international calls. The Conference ID# is 5486364.

SELECTED FINANCIAL DATA

($ in thousands, except per share data)

(Unaudited)

   

Fourth Quarter Ended

Year Ended
   

December 31,

December 31,
   

2003

  

2002

  

2003

  

2002

Revenues:

                

    Services

$

51,242

$

44,128

$

195,731

$

172,084

    Products

  

23,372

  

19,897

  

84,843

  

77,741

        Total revenues

74,614

64,025

280,574

249,825
                 

Cost of Sales:

                

    Cost of services

  

41,238

  

35,970

  

157,476

  

137,189

    Cost of products

  

17,549

  

14,855

  

63,598

  

58,239

        Total cost of sales

  

58,787

  

50,825

  

221,074

  

195,428

        Gross profit

  

15,827

  

13,200

  

59,500

  

54,397
                 

Operating Expenses:

                

    Administrative

  

4,026

  

4,038

  

14,508

  

13,399

    Salary and payroll taxes

  

4,173

  

2,941

  

16,789

  

13,355

        Total operating expenses

  

8,199

  

6,979

  

31,297

  

26,754

        Income from continuing operations

  

7,628

  

6,221

  

28,203

  

27,643
                 

Other Income (Expense):

                

    Interest expense

  

(741

)

(878

)

(3,392

)

(3,714)

    Equity and minority interest

  

19

  

235

  

276

  

(751)

    Other income

  

17

  

24

  

510

  

130

        Total other income (expense)

  

(705

)

(619

)

(2,606

)

(4,335)
                 

Income from continuing operations before provision for income taxes, discontinued operations and cumulative effect of a change in accounting principle

  



6,923

  



5,602

  



25,597

  



23,308
                 

Provision for income taxes

  

411

  

953

  

1,615

  

1,670
                 

Income from continuing operations before discontinued operations and cumulative effect of a change in accounting principle

  



6,512

  



4,649

  



23,982

  



21,638
                 

Loss from discontinued operations (which includes loss on disposal in 2003 of $32 and $1,674 for the three months and year ended December 31, 2003, respectively and $14,406 for 2002), net of taxes

  




(291




)




(16,859




)




(3,560




)




(24,384)
                 

Cumulative effect of a change in accounting principle, net of taxes

  


--

  


--



--

  


(29,644)
                 

Net income (loss)

$

6,221

$

(12,210

)$

20,422

$

(32,390)

 

Income (loss) per share-Basic:

    Income before discontinued operations and
        cumulative effect of a change in accounting
        principle



$



0.40



$



0.29



$



1.46



$



1.36

    Loss from discontinued operations

(0.02

)

(1.05

)

(0.22

)

(1.53)

    Cumulative effect of a change in
        accounting principle


--


--



--


(1.86)

$

0.38

$

(0.76

) $

1.24

$

(2.03)

Income (loss) per share-Diluted:

    Income before discontinued operations and
        cumulative effect of a change in accounting
        principle



$



0.39



$



0.29



$



1.44



$



1.33

    Loss from discontinued operations

(0.02

)

(1.05

)

(0.21

)

(1.51)

    Cumulative effect of a change in
        accounting principle


--


--



--


(1.82)

$

0.37

$

(0.76

) $

1.23

$

(2.00)

Weighted average shares outstanding:

    Basic

16,464

15,984

16,415

15,935

    Diluted

16,837

16,120

16,668

16,212

STATISTICS

   

Fourth Quarter Ended

  

Year Ended

December 31,

December 31,
   

2003

  

2002

  

2003

  

2002
                 

Average number of ships served1:

  

103

  

101

  

103

  

100

Spa

  

68

  

62

  

67

  

60

Non-Spa

  

35

  

39

  

36

  

40
                 

Average total number of staff on ships served:

  


1,386

  


1,220

  


1,333

  


1,187

Spa

  

1,128

  

986

  

1,088

  

948

Non-Spa

  

258

  

234

  

245

  

239
                 

Revenue per staff per day2:

$

393

$

395

$

392

$

397

Spa

$

420

$

426

$

418

$

428

Non-Spa

$

273

$

266

$

272

$

274
                 

Average weekly revenues:

$

36,999

$

33,351

$

35,604

$

33,005

Spa

$

48,735

$

47,073

$

47,585

$

47,589

Non-Spa

$

14,130

$

11,260

$

13,088

$

11,375
                 

Average number of land-based spas operated3,4,5

  


48

  


46

  


48

  


46
                 

Average weekly land-based spas revenues5

$

22,714

$

18,766

$

21,528

$

18,849
                 

Total schools revenues6

$

4,106,000

$

3,939,000

$

16,561,000

$

16,606,000
                 

Total wholesale and retail product revenues

$

6,153,000

$

4,389,000

$

19,776,000

$

15,619,000

_____________

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 year 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 Excludes the effect of eleven land-based resort spas that we operate through a joint venture in which we own a 49% interest.

4 Average number of land-based day spas operated reflects the fact that during the period spas were opened or closed and, accordingly, the number of spas served during the period varied.

5 Includes resort spas and two spas referred to as "day spas" in statistical presentations prior to 2003.

6 Includes $139,000 and $132,000 for the three months ended December 31, 2003 and 2002, respectively, and $669,000 and $692,000 for the year ended December 31, 2003 and 2002, respectively, relating to our shipboard staff training school near London, England.