EX-99 2 stnrex99_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

Second Quarter 2006 Financial Results

NASSAU, THE BAHAMAS, July 26, 2006 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the second quarter ended June 30, 2006. Included in our 2006 second quarter results are the post acquisition results of operations of Utah College of Massage Therapy ("UCMT"), a post secondary massage therapy school, and an entity affiliated with UCMT that offers spa products, equipment and services to UCMT students and others. We acquired UCMT and that other entity on April 3, 2006.

Steiner Leisure's revenues for the second quarter ended June 30, 2006 rose 19.9% to $117.2 million from $97.8 million during the comparable quarter in 2005. Income from continuing operations, before discontinued operations for the second quarter, was $10.8 million compared with $9.6 million for the same quarter in 2005.

Earnings per share before discontinued operations for the second quarter ended June 30, 2006 was $0.61 per share, compared with $0.53 per share for the comparable quarter in 2005. The earnings per share data are presented on a diluted basis.

Revenues for the six months ended June 30, 2006 rose 15.2% to $221.8 million from $192.5 million during the comparable six months in 2005. Income from continuing operations, before discontinued operations for the six months ended June 30, 2006 was $21.4 million compared with $18.7 million for the same six months in 2005.

Earnings per share before discontinued operations for the six months ended June 30, 2006 was $1.20 per share compared with $1.01 per share for the comparable six months in 2005. The above earnings per share data are presented on a diluted basis.

Leonard I. Fluxman, President and Chief Executive Officer of Steiner Leisure, commented "Our second quarter performance was in line with our expectations. Despite the annual repositioning of certain ships to Alaska and the Mediterranean during this quarter, our execution in our maritime business remained strong."

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 124 cruise ships, and in 58 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..

The Company will be holding a conference call at 11:00 am (EST) on Thursday, July 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, July 27, 2006 (approximately 3 hours after the call takes place) until Thursday, August 3, 2006 at 12:00 pm. You may reach it by dialing (706) 645-9291 for both domestic and international calls. The conference ID # is 2933467.

SELECTED FINANCIAL DATA

($ and shares in thousands, except per share data)

(Unaudited)

   

Second Quarter Ended

Six Months Ended
   

June 30,

June 30,
   

2006(1)

  

2005

  

2006(1)

  

2005

Revenues:

                

    Services

$

79,871

$

65,169

$

150,817

$

130,495

    Products

  

37,355

  

32,603

  

70,958

  

62,021

        Total revenues

117,226

97,772

221,775

192,516
                 

Cost of Sales:

                

    Cost of services

  

63,427

  

51,917

  

119,930

  

103,209

    Cost of products

  

27,631

  

24,786

  

52,008

  

47,141

        Total cost of sales

  

91,058

  

76,703

  

171,938

  

150,350

        Gross profit

  

26,168

  

21,069

  

49,837

  

42,166
                 

Operating Expenses:

                

    Administrative

  

6,393

  

5,045

  

12,188

  

10,675

    Salary and payroll taxes

  

8,402

  

5,647

  

15,757

  

11,342

        Total operating expenses

  

14,795

  

10,692

  

27,945

  

22,017

        Income from continuing operations

  

11,373

  

10,377

  

21,892

  

20,149
                 

Other Income (Expense):

                

    Interest expense

  

(73

)

(62

)

(85

)

(113)

    Other income

  

344

  

62

  

1,269

  

210

        Total other income (expense)

  

271

  

--

  

1,184

  

97
                 

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

  


11,644

  


10,377

  


23,076

  


20,246
                 

Provision for income taxes

  

865

  

813

  

1,716

  

1,586
                 

Income from continuing operations before discontinued operations


10,779


9,564


21,360


18,660
                 

Income (loss) from discontinued operations, net of taxes

  

--

  

(3

)

225

  

(17)
                 
                 

Net income

$

10,779

$

9,561

$

21,585

$

18,643

Income (loss) per share-Basic:

    Income before discontinued operations

$

0.62

$

0.55

$

1.23

$

1.06

    Income (loss) from discontinued operations

--

--

0.01

--

$

0.62

$

0.55

$

1.24

$

1.06

Income (loss) per share-Diluted:

    Income before discontinued operations

$

0.61

$

0.53

$

1.20

$

1.01

    Income (loss) from discontinued operations

--

--

0.01

--

$

0.61

$

0.53

$

1.21

$

1.01

Weighted average shares outstanding:

    Basic

17,329

17,312

17,350

17,653

    Diluted

17,774

18,087

17,866

18,491

Notes:

(1) Includes post acquisition results of UCMT and its affiliate which were acquired on April 3, 2006.

STATISTICS

   

Second Quarter Ended

  

Six Months Ended

June 30,

June 30,
   

2006

  

2005

  

2006

  

2005
                 

Average number of ships served1:

  

119

  

115

  

118

  

115

Spa

  

86

  

82

  

85

  

82

Non-Spa

  

33

  

33

  

33

  

33
                 

Average total number of staff on ships served:

  


1,771

  


1,646

  


1,733

  


1,632

Spa

  

1,543

  

1,412

  

1,504

  

1,397

Non-Spa

  

228

  

234

  

229

  

235
                 

Revenue per staff per day2:

$

468

$

448

$

464

$

447

Spa

$

491

$

471

$

487

$

473

Non-Spa

$

308

$

314

$

310

$

300
                 

Average weekly revenues:

$

48,549

$

44,962

$

47,853

$

44,422

Spa

$

61,391

$

56,662

$

60,694

$

56,460

Non-Spa

$

14,924

$

15,706

$

15,022

$

14,832
                 

Average number of land-based spas served 3

  

56

  

49

  

56

  

48
                 

Average weekly land-based spas revenues

$

26,608

$

26,785

$

27,072

$

27,578
                 

Total schools revenues4,5

$

11,052,000

$

4,239,000

$

16,160,000

$

8,665,000
                 

Total wholesale and retail product revenues

$

11,534,000

$

9,428,000

$

21,093,000

$

17,352,000

_____________

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 $126,000 and $151,000 for the three months ended June 30, 2006 and 2005, respectively, and $295,000 and $368,000 for the six months ended June 30, 2006 and 2005, respectively, relating to the Steiner training school near London, England.

5 Includes post acquisition results of UCMT and its affiliate which were acquired on April 3, 2006.