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
February 28, 2007
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, 2006 was issued after the close of regular trading on the Nasdaq National Market on February 28, 2007.

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 February 28, 2007.

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, 2007	/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 Fourth Quarter and 2006 Financial Results

NASSAU, THE BAHAMAS, February 28, 2007- Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2006.

Financial Results

Steiner Leisure's revenues for the fourth quarter ended December 31, 2006 rose 20.7% to $122.1 million from $101.1 million during the comparable quarter in 2005. Income from continuing operations, before discontinued operations for the fourth quarter, was $13.2 million compared with $10.8 million for the same quarter in 2005. In the fourth quarter of 2006, the Company adopted Staff Accounting Bulletin 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements ("SAB 108"). The effect of adopting SAB 108 was an income tax benefit of $1.8 million during the fourth quarter of 2006 and had no impact on our results of operations for the year ended December 31, 2006.

Earnings per share before discontinued operations for the fourth quarter ended December 31, 2006 was $0.75 per share, compared with $0.61 per share for the comparable quarter in 2005. The earnings per share data are presented on a diluted basis.

Revenues for the year ended December 31, 2006, rose 18.4% to $470.1 million from $397.2 million in 2005. Income from continuing operations, before discontinued operations for the year ended December 31, 2006, was $45.9 million, compared with $40.4 million in 2005.

Earnings per share before discontinued operations for the year ended December 31, 2006 was $2.60 per share compared with $2.23 per share 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 "We are pleased with our fourth quarter and annual financial results. The strong execution by our personnel allowed us to generate strong earnings growth and cash flow in 2006."

Corporate Overview

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 126 cruise ships, and in 53 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, March 1, 2007. 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". This call is available for replay from Thursday. March 1, 2007 (approximately 3 hours after the call takes place) until Wednesday, March 7, 2007 at 11:00 pm. You may reach it by dialing (402) 998-1330 for both domestic and international calls.

SELECTED FINANCIAL DATA

($ in thousands, except per share data)

(Unaudited)

		Fourth Quarter Ended					Year Ended
		December 31,					December 31,
			2006(1)		2005			2006(1)		2005
Revenues:
Services	$		80,972	$	67,259	$		317,731	$	268,401
Products			41,103		33,879			152,411		128,817
Total revenues			122,075		101,138			470,142		397,218
Cost of Sales:
Cost of services			65,256		54,316			253,772		214,022
Cost of products			28,835		24,945			110,744		96,588
Total cost of sales			94,091		79,261			364,516		310,610
Gross profit			27,984		21,877			105,626		86,608
Operating Expenses:
Administrative			7,169		5,002			26,260		20,837
Salary and payroll taxes			8,566		5,290			32,844		22,348
Total operating expenses			15,735		10,292			59,104		43,185
Income from continuing operations			12,249		11,585			46,522		43,423
Other Income (Expense):
Interest expense			(38	)	(82	)		(287	)	(275)
Other income			324		220			1,933		553
Total other income (expense)			286		138			1,646		278
Income from continuing operations before provision for income taxes and discontinued operations			12,535		11,723			48,168		43,701
Provision (benefit) for income taxes (2)			(635	)	885			2,248		3,302
Income from continuing operations before discontinued operations			13,170		10,838			45,920		40,399
Income from discontinued operations, net of taxes			--		788			225		769
Net income	$		13,170	$	11,626	$		46,145	$	41,168
Income per share-Basic:
Income before discontinued operations	$		0.78	$	0.63	$		2.68	$	2.32
Income from discontinued operations			--		0.05			0.01		0.04
	$		0.78	$	0.68	$		2.69	$	2.36
Income per share-Diluted(3):
Income before discontinued operations	$		0.75	$	0.61	$		2.60	$	2.23
Income from discontinued operations			--		0.04			0.01		0.04
	$		0.75	$	0.65	$		2.61	$	2.27
Weighted average shares outstanding:
Basic			16,890		17,174			17,134		17,401
Diluted			17,317		17,842			17,596		18,159

Notes:

1. Includes post acquisition results of Utah College of Massage Therapy ("UCMT") and an affiliate which were acquired on April 3, 2006.
2. During the fourth quarter of 2006, we adopted SAB 108. The affect of adopting SAB 108 was an income tax benefit of $1.8 million during the fourth quarter of 2006 and had no impact on our results of operations for the year ended December 31, 2006. This corrected an error relating to the different treatment for book and tax purposes of the Company's tax deductible goodwill which cannot be assumed to offset deductible temporary differences which create deferred tax assets, which was recorded in the second quarter of 2006.
3. During 2006, considers the impact of stock options outstanding of a subsidiaries common stock of $143,000. During 2005, the impact was immaterial.

STATISTICS

		Fourth Quarter Ended						Year Ended
		December 31,						December 31,
		2006			2005				2006			2005
Average number of ships served1:		122		112			120				115
Spa		90		82			87				83
Non-Spa		32		30			33				32
Average total number of staff on ships served:		1,884		1,656			1,807				1,653
Spa		1,650		1,443			1,577				1,424
Non-Spa		234		213			230				229
Revenue per staff per day2:	$	443	$	450		$	464			$	455
Spa	$	461	$	470		$	485			$	477
Non-Spa	$	315	$	315		$	318			$	314
Average weekly revenues:	$	47,835	$	46,475		$	48,840			$	45,721
Spa	$	59,259	$	57,619		$	61,298			$	57,508
Non-Spa	$	16,002	$	15,681		$	15,625			$	15,571
Average number of land-based spas operated3		54		53			55				50
Average weekly land-based spas revenues	$	24,437	$	25,524		$	25,881			$	26,441
Total schools revenues4,5	$	11,928,000	$	4,393,000		$	39,812,000			$	17,750,000
Total wholesale and retail product revenues	$	15,917,000	$	10,481,000		$	49,799,000			$	36,294,000

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 $116,000 and $130,000 for the three months ended December 31, 2006 and 2005, respectively, and $537,000 and $670,000 for the year ended December 31, 2006 and 2005, respectively, relating to the Steiner training school near London, England.

5Includes post acquisition results of UCMT which was acquired on April 3, 2006.