EX-99 2 exhibit99_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 2007 Financial Results

NASSAU, THE BAHAMAS, July 25, 2007 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the second quarter ended June 30, 2007.

Steiner Leisure's revenues for the second quarter ended June 30, 2007 rose 10.8% to $129.8 million from $117.2 million during the comparable quarter in 2006. Income from operations for the second quarter, was $11.6 million compared with $10.8 million for the same quarter in 2006.

Earnings per share for the second quarter ended June 30, 2007 was $0.67 per share, compared with $0.61 per share for the comparable quarter in 2006. The earnings per share data are presented on a diluted basis.

Revenues for the six months ended June 30, 2007 rose 14.3% to $253.6 million from $221.8 million during the comparable six months in 2006. Income from continuing operations, before discontinued operations for the six months ended June 30, 2007 was $22.3 million compared with $21.4 million for the same six months in 2006.

Earnings per share before discontinued operations for the six months ended June 30, 2007 was $1.28 per share compared with $1.20 per share for the comparable six months in 2006. 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 the high end of our guidance. 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 131 cruise ships, and in 52 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, department stores 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 26, 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, password "Steiner", for domestic and international calls approximately ten minutes before the scheduled time. This call is available for replay from Thursday, July 26, 2007 (approximately 3 hours after the call takes place) until Thursday, August 2, 2007 at 11:00 pm. You may reach it by dialing (203) 369-0121 for both domestic and international calls. No password is required.

SELECTED FINANCIAL DATA

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

(Unaudited)

   

Second Quarter Ended

  

Six Months Ended

  
   

June 30,

  

June 30,

  
   

2007

  

2006

  

2007

  

2006(1)

  

Revenues:

                  

    Services

$

86,569

$

79,871

$

170,816

$

150,817

  

    Products

  

43,270

  

37,355

  

82,760

  

70,958

  

        Total revenues

129,839

117,226

253,576

221,775

                   

Cost of Sales:

                  

    Cost of services

  

69,497

  

63,427

  

136,984

  

119,930

  

    Cost of products

  

30,962

  

27,631

  

58,716

  

52,008

  

        Total cost of sales

  

100,459

  

91,058

  

195,700

  

171,938

  

        Gross profit

  

29,380

  

26,168

  

57,876

  

49,837

  
                   

Operating Expenses:

                  

    Administrative

  

7,647

  

6,393

  

15,509

  

12,188

  

    Salary and payroll taxes

  

9,355

  

8,402

  

18,640

  

15,757

  

        Total operating expenses

  

17,002

  

14,795

  

34,149

  

27,945

  

        Income from continuing operations

  

12,378

  

11,373

  

23,727

  

21,892

  
                   

Other Income (Expense):

                  

    Interest expense

  

(104

)

(73

)

(148

)

(85

)

    Other income

  

386

  

344

  

955

  

1,269

  

        Total other income (expense)

  

282

  

271

  

807

  

1,184

  
                   

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

  


12,660

  


11,644

  


24,534

  


23,076

  
                   

Provision for income taxes

  

1,098

  

865

  

2,193

  

1,716

  
                   

Income from continuing operations before discontinued operations


11,562


10,779


22,341


21,360

                   

Income from discontinued operations, net of taxes

  

--

  

--

  

--

  

225

  
                   
                   

Net income

$

11,562

$

10,779

$

22,341

$

21,585

Income per share-Basic:

    Income before discontinued operations

$

0.68

$

0.62

$

1.32

$

1.23

    Income from discontinued operations

--

--

--

0.01

$

0.68

$

0.62

$

1.32

$

1.24

Income per share-Diluted(2):

    Income before discontinued operations

$

0.67

$

0.61

$

1.28

$

1.20

    Income from discontinued operations

--

--

--

0.01

$

0.67

$

0.61

$

1.28

$

1.21

Weighted average shares outstanding:

    Basic

16,917

17,329

16,970

17,350

    Diluted

17,328

17,774

17,357

17,866

Notes:

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

(2)  Considers the impact of stock options outstanding of a subsidiary's common stock of $20,000 and $27,000 and $63,000 and $46,000 for the three and six months ended June 30, 2007 and 2006, respectively.

STATISTICS

   

Second Quarter Ended

  

Six Months Ended

June 30,

June 30,
   

2007

  

2006

  

2007

  

2006
                 

Average number of ships served1:

  

127

  

119

  

126

  

118

Spa

  

93

  

86

  

92

  

85

Non-Spa

  

34

  

33

  

34

  

33
                 

Average total number of staff on ships served:

  


1,967

  


1,771

  


1,953

  


1,733

Spa

  

1,731

  

1,543

  

1,713

  

1,504

Non-Spa

  

236

  

228

  

240

  

229
                 

Revenue per staff per day2:

$

473

$

468

$

464

$

464

Spa

$

494

$

491

$

484

$

487

Non-Spa

$

318

$

308

$

317

$

310
                 

Average weekly revenues:

$

51,359

$

48,549

$

50,413

$

47,853

Spa

$

64,178

$

61,391

$

62,871

$

60,694

Non-Spa

$

15,690

$

14,924

$

15,946

$

15,022
                 

Average number of land-based spas served 3

  

54

  

56

  

54

  

56
                 

Average weekly land-based spas revenues

$

26,209

$

26,608

$

26,346

$

27,072
                 

Total schools revenues4,5

$

11,407,000

$

11,052,000

$

23,350,000

$

16,160,000
                 

Total wholesale and retail product revenues

$

15,332,000

$

11,534,000

$

29,207,000

$

21,093,000

_____________

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 $79,000 and $126,000 for the three months ended June 30, 2007 and 2006, respectively, and $159,000 and $295,000 for the six months ended June 30, 2007 and 2006, 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.