8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549
FORM 8-K
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
March 1, 2006
Date of report (date of earliest event reported)
STEINER LEISURE LIMITED
(Exact Name of Registrant as Specified in Its Charter)
Commonwealth of The Bahamas
(State or other Jurisdiction of Incorporation)
0-28972	98-0164731
(Commission File Number)	(IRS Employer Identification No.)
Suite 104A, Saffrey Square
Nassau, The Bahamas	Not Applicable
(Address of Principal Executive Offices)	(Zip Code)
(242) 356-0006
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition

Disclosure under this Item 2.02 is furnished to comply with the SEC requirement that the earnings press release of the registrant be furnished to the SEC under cover of Form 8-K. The Company's earnings press release for the fourth quarter and year ending December 31, 2005 was issued after the close of regular trading on the Nasdaq National Market on March 1, 2006.

The information in this Form 8-K, including the exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general language in such filing, unless it is specifically identified therein as being incorporated therein by reference.

Item 9.01.  Financial Statement and Exhibits

3. Exhibits

99.1 - Press Release issued by Steiner Leisure Limited on March 1, 2006.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	STEINER LEISURE LIMITED
Date: March 1, 2006	/s/ Leonard I. Fluxman
	Leonard I Fluxman
	President and Chief Executive Officer

EX-99

Exhibit 99.1

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 Record Fourth Quarter and 2005 Financial Results

NASSAU, THE BAHAMAS, March 1, 2006 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2005.

Financial Results

Steiner Leisure's revenues for the fourth quarter ended December 31, 2005 rose 15.6% to $101.1 million from $87.5 million during the comparable quarter in 2004. Income from continuing operations, before discontinued operations for the fourth quarter, was $10.8 million compared with $10.0 million for the same quarter in 2004. The income from continuing operations before discontinued operations for the fourth quarter of 2004 included a gain of approximately $1.5 million related to the sale of the Company's 49% ownership interest in each of two entities that operate resort spas in Thailand and China, respectively, to the 51% owner thereof.

During the fourth quarter of 2005, the Company reversed a liability relating to its discontinued day spa operations resulting in a discontinued operations gain of $800,000.

Earnings per share before discontinued operations for the fourth quarter ended December 31, 2005 was $0.61 per share, compared with $0.55 per share for the comparable quarter in 2004. The earnings per share before discontinued operations for the fourth quarter of 2004 included $0.08 related to the sale of the Company's ownership interest discussed above. The earnings per share data are presented on a diluted basis.

Revenues for the year ended December 31, 2005, rose 16.3% to $397.2 million from $341.5 million in 2004. Income from continuing operations, before discontinued operations for the year ended December 31, 2005, was $40.4 million, compared with $35.9 million in 2004.

Earnings per share before discontinued operations for the year ended December 31, 2005 was $2.23 per share compared with $2.03 per share in 2004. The above earnings per share data are presented on a diluted basis.

Leonard I. Fluxman, President and Chief Executive Officer of Steiner Leisure, commented "We are very pleased with our record fourth quarter and annual financial results. The strong execution by our personnel allowed us to generate strong earnings growth and cash flow in 2005."

Corporate Overview

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 122 cruise ships, and in 56 resort spas and two luxury day spas. Our cruise line and land-based resort customers include Carnival Cruise Lines, Caesars Entertainment, Celebrity Cruises, Crystal Cruises, Cunard/Seabourn Cruise Lines, Hilton Hotels, Holland America Line, Kerzner International, Marriott Hotels, Norwegian Cruise Lines, Princess Cruises and Royal Caribbean Cruises. 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 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.

Conference Call

The Company will be holding a conference call at 11:00 am (EST) on Thursday, March 2, 2006. 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 five minutes before the scheduled time. This call is available for replay from Thursday. March 2, 2006 (approximately 3 hours after the call takes place) until Wednesday, March 8, 2006 at 11:00 pm. You may reach it by dialing (706) 645-9291 for both domestic and international calls. The conference ID # is 5180283.

SELECTED FINANCIAL DATA

($ in thousands, except per share data)

(Unaudited)

		Fourth Quarter Ended						Year Ended
		December 31,						December 31,
				2005		2004			2005		2004
Revenues:
Services	$			67,259	$	58,912	$		268,401	$	233,350
Products				33,879		28,546			128,817		108,141
Total revenues				101,138		87,458			397,218		341,491
Cost of Sales:
Cost of services				54,316		47,297			214,022		185,294
Cost of products				24,945		21,548			96,588		80,512
Total cost of sales				79,261		68,845			310,610		265,806
Gross profit				21,877		18,613			86,608		75,685
Operating Expenses:
Administrative				5,002		5,153			20,837		18,493
Salary and payroll taxes				5,290		4,225			22,348		18,838
Total operating expenses				10,292		9,378			43,185		37,331
Income from continuing operations				11,585		9,235			43,423		38,354
Other Income (Expense):
Interest expense				(82	)	(47	)		(275	)	(1,525)
Equity and minority interest				--		--			--		292
Other income				220		1,593			553		1,679
Total other income (expense)				138		1,546			278		446
Income from continuing operations before provision for income taxes and discontinued operations				11,723		10,781			43,701		38,800
Provision for income taxes				885		753			3,302		2,912
Income from continuing operations before discontinued operations				10,838		10,028			40,399		35,888
Income from discontinued operations (which includes gain on disposal of $239 and $145 for the three months and year ended December 31, 2004), net of taxes				788		210			769		90
Net income	$			11,626	$	10,238	$		41,168	$	35,978
Income per share-Basic:
Income before discontinued operations			$	0.63	$	0.57	$		2.32	$	2.12
Income from discontinued operations				0.05		0.02			0.04		0.01
			$	0.68	$	0.59	$		2.36	$	2.13
Income per share-Diluted:
Income before discontinued operations			$	0.61	$	0.55	$		2.23	$	2.03
Income from discontinued operations				0.04		0.01			0.04		0.01
			$	0.65	$	0.56	$		2.27	$	2.04
Weighted average shares outstanding:
Basic				17,174		17,458			17,401		16,899
Diluted				17,842		18,359			18,159		17,643

STATISTICS

		Fourth Quarter Ended						Year Ended
		December 31,						December 31,
		2005			2004				2005			2004
Average number of ships served1:		112		110			115				109
Spa		82		77			83				75
Non-Spa		30		33			32				34
Average total number of staff on ships served:		1,656		1,493			1,653				1,471
Spa		1,443		1,266			1,424				1,242
Non-Spa		213		227			229				229
Revenue per staff per day2:	$	450	$	428		$	455			$	427
Spa	$	470	$	451		$	477			$	449
Non-Spa	$	315	$	300		$	314			$	306
Average weekly revenues:	$	46,475	$	40,826		$	45,721			$	40,183
Spa	$	57,619	$	52,227		$	57,508			$	51,791
Non-Spa	$	15,681	$	14,411		$	15,571			$	14,420
Average number of land-based spas operated3		53		51			50				52
Average weekly land-based spas revenues	$	25,524	$	24,129		$	26,441			$	24,303
Total schools revenues4	$	4,393,000	$	3,613,000		$	17,750,000			$	16,866,000
Total wholesale and retail product revenues	$	10,481,000	$	8,728,000		$	36,294,000			$	29,019,000

_____________

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 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.

4Includes $130,000 and $156,000 for the three months ended December 31, 2005 and 2004, respectively, and $670,000 and $747,000 for the year ended December 31, 2005 and 2004, respectively, relating to the Steiner training school near London, England.