EX-99 2 stnrexhibit99_1.htm STEINER LEISURE LIMITED

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 First Quarter 2006 Financial Results

NASSAU, THE BAHAMAS, April 26, 2006 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the first quarter ended March 31, 2006.

Financial Results

Steiner Leisure's revenues for the first quarter ended March 31, 2006 rose 10.3% to $104.5 million from $94.7 million during the comparable quarter in 2005. Income from continuing operations, before discontinued operations for the first quarter, was $10.6 million compared with $9.1 million for the same quarter in 2005. The income from continuing operations for the first quarter of 2006 includes $557,000 of stock based compensation expense related to the adoption of SFAS No. 123(R) effective January 1, 2006 under the modified prospective method and $440,000 of insurance proceeds received related to the Tsunami that hit various Asian regions in December 2004 and damaged most of our operations in the Maldive Islands.

Earnings per share before discontinued operations for the first quarter ended March 31, 2006 was $0.59 per share, compared with $0.48 per share for the comparable quarter in 2005. The 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 first quarter results. The momentum from 2005 has continued into the first quarter of 2006 as most of the key elements of our businesses performed very well."

Corporate Overview

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 124 cruise ships, and in 57 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 owns and operates four post secondary schools (comprised of a total of 14 campuses) located in Miami, Orlando, Pompano Beach and Sarasota, Florida; Baltimore, Maryland; Charlottesville, Virginia; York, Pennsylvania; Salt Lake City and Lindon, Utah; Las Vegas, Nevada; Tempe and Phoenix, Arizona; and Westminster and Aurora, Colorado. Offering degree and non-degree programs in massage therapy and, in some cases, 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, April 27, 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 ten minutes before the scheduled time. This call is available for replay from Thursday, April 27, 2006 (approximately 3 hours after the call takes place) until Tuesday, May 2, 2006 at 5:00 pm. You may reach it by dialing (706) 645-9291 for both domestic and international calls. The conference ID # is 7855768.


SELECTED FINANCIAL DATA

($ in thousands, except per share data)

(Unaudited)

   

First Quarter Ended

   
   

March 31,

   
   

2006

 

2005

       

Revenues:

               

    Services

$

70,946

$

65,326

       

    Products

 

33,603

 

29,418

       

        Total revenues

104,549

94,744

                 

Cost of Sales:

               

    Cost of services

 

56,503

 

51,292

       

    Cost of products

 

24,377

 

22,355

       

        Total cost of sales

 

80,880

 

73,647

       

        Gross profit

 

23,669

 

21,097

       
                 

Operating Expenses:

               

    Administrative

 

5,795

 

5,630

       

    Salary and payroll taxes

 

7,355

 

5,695

       

        Total operating expenses

 

13,150

 

11,325

       

        Income from continuing operations

 

10,519

 

9,772

       
                 

Other Income (Expense):

               

    Interest expense

 

(12

)

(51

)

     

    Other income

 

925

 

148

       

        Total other income (expense)

 

913

 

97

       
                 

Income from continuing operations before provision for income taxes and discontinued operations

 


11,432

 


9,869

       
                 

Provision for income taxes

 

851

 

773

       
                 

Income from continuing operations before discontinued operations

 


10,581

 


9,096

       
                 

Income (loss) from discontinued operations, net of taxes

 

225

 

(14

)

     
                 

Net income

$

10,806

$

9,082

Income per share-Basic:

    Income before discontinued operations

$

0.61

$

0.51

    Income from discontinued operations

0.01

--

$

0.62

$

0.51

Income per share-Diluted:

    Income before discontinued operations

$

0.59

$

0.48

    Income from discontinued operations

0.01

--

$

0.60

$

0.48

Weighted average shares outstanding:

    Basic

17,370

17,999

    Diluted

17,959

18,886

 


STATISTICS

First Quarter Ended

   

March 31,

   
   

2006

 

2005

       
                 

Average number of ships served1:

 

116

 

115

       

Spa

 

83

 

82

       

Non-Spa

 

33

 

33

       
                 

Average total number of staff on ships served:

 


1,695

 


1,617

       

Spa

 

1,465

 

1,382

       

Non-Spa

 

230

 

235

       
                 

Revenue per staff per day2:

$

460

$

447

       

Spa

$

483

$

475

       

Non-Spa

$

311

$

287

       
                 

Average weekly revenues:

$

47,128

$

43,878

       

Spa

$

59,957

$

56,255

       

Non-Spa

$

15,120

$

13,973

       
                 

Average number of land based spas served3

 

55

 

47

       
                 

Average weekly land based spas revenues

$

27,869

$

28,404

       
                 

Total schools revenues4

$

5,108,000

$

4,426,000

       
                 

Total wholesale and retail product revenues

$

9,559,000

$

7,924,000

       

_____________

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 operated reflects the fact that during the period spas were opened or closed and, accordingly, the number of spas served during the period varied.

4 Includes $169,000 and $217,000 for the three months ended March 31, 2006 and 2005, respectively, relating to the Steiner training school near London, England.