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

Third Quarter 2007 Financial Results

NASSAU, THE BAHAMAS, October 31, 2007 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the third quarter and nine months ended September 30, 2007.

Steiner Leisure's revenues for the third quarter ended September 30, 2007 rose 11.2% to $140.4 million from $126.3 million during the comparable quarter in 2006. Income from continuing operations for the third quarter was $11.4 million in both 2007 and 2006.

Earnings per share for the third quarter ended September 30, 2007 was $0.68 per share, compared with $0.66 per share for the comparable quarter in 2006. The earnings per share data are presented on a diluted basis.

Revenues for the nine months ended September 30, 2007 rose 13.2% to $394.0 million from $348.1 million during the comparable nine months in 2006. Income from continuing operations, before discontinued operations for the nine months ended September 30, 2007 was $33.7 million compared with $32.8 million for the same nine months in 2006.

Earnings per share before discontinued operations for the nine months ended September 30, 2007 was $1.96 per share compared with $1.85 per share for the comparable nine 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 "The maritime business executed very well and the rest of the business performed in line with our expectations."

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 132 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 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, November 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 ten minutes before the scheduled time. The password is "Steiner". The call is available for replay from Thursday, November 1, 2007 (approximately 3 hours after the call takes place) through Thursday, November 8, 2007 at approximately 9:00 pm. You may reach it by dialing (800) 731-6039 for both domestic and international calls.

SELECTED FINANCIAL DATA

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

(Unaudited)

   

Third Quarter Ended

Nine Months Ended
   

September 30,

September 30,
   

2007

  

2006

  

2007

  

2006(1)

Revenues:

                

    Services

$

92,682

$

85,942

$

263,498

$

236,759

    Products

  

47,749

  

40,350

  

130,509

  

111,308

        Total revenues

140,431

126,292

394,007

348,067
                 

Cost of Sales:

                

    Cost of services

  

75,269

  

68,586

  

212,253

  

188,516

    Cost of products

  

35,185

  

29,901

  

93,901

  

81,909

        Total cost of sales

  

110,454

  

98,487

  

306,154

  

270,425

        Gross profit

  

29,977

  

27,805

  

87,853

  

77,642
                 

Operating Expenses:

                

    Administrative

  

8,332

  

6,903

  

23,841

  

19,091

    Salary and payroll taxes

  

9,452

  

8,521

  

28,092

  

24,278

        Total operating expenses

  

17,784

  

15,424

  

51,933

  

43,369

        Income from continuing operations

  

12,193

  

12,381

  

35,920

  

34,273
                 

Other Income (Expense):

                

    Interest expense

  

(132

)

(164

)

(280

)

(249)

    Other income

  

397

  

340

  

1,352

  

1,609

        Total other income (expense)

  

265

  

176

  

1,072

  

1,360
                 

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

  


12,458

  


12,557

  


36,992

  


35,633
                 

Provision for income taxes

  

1,085

  

1,167

  

3,278

  

2,883
                 

Income from continuing operations before discontinued operations

  

11,373

  

11,390

  

33,714

  

32,750
                 

Income from discontinued operations, net of taxes

  

--

  

--

  

--

  

225
                 
                 

Net income

$

11,373

$

11,390

$

33,714

$

32,975

Income per share-Basic:

    Income before discontinued operations

$

0.69

$

0.67

$

2.00

$

1.91

    Income from discontinued operations

--

--

--

0.01

$

0.69

$

0.67

$

2.00

$

1.92

Income per share-Diluted (2):

    Income before discontinued operations

$

0.68

$

0.66

$

1.96

$

1.85

    Income from discontinued operations

--

--

--

0.01

$

0.68

$

0.66

$

1.96

$

1.86

Weighted average shares outstanding:

    Basic

16,519

16,956

16,818

17,217

    Diluted

16,837

17,344

17,182

17,691

Notes:

  1. Includes post acquisition results of UCMT and an affiliate which were acquired on April 3, 2006.
  2. Considers the impact of stock options outstanding of a subsidiary's common stock of $29,000 for the three months ended September 30, 2006 and $37,000 and $95,000 for the nine months ended September 30, 2007 and 2006, respectively. The impact was anti-dilutive for the three months ended September 30, 2007.

STATISTICS

   

Third Quarter Ended

  

Nine Months Ended

September 30,

September 30,
   

2007

  

2006

  

2007

  

2006
                 

Average number of ships served1:

  

129

  

123

  

127

  

119

Spa

  

95

  

90

  

94

  

86

Non-Spa

  

34

  

33

  

33

  

33
                 

Average total number of staff on ships served:

  


2,021

  


1,875

  


1,976

  


1,781

Spa

  

1,784

  

1,648

  

1,737

  

1,553

Non-Spa

  

237

  

227

  

239

  

228
                 

Revenue per staff per day2:

$

503

$

485

$

477

$

471

Spa

$

523

$

505

$

498

$

494

Non-Spa

$

357

$

339

$

331

$

319
                 

Average weekly revenues:

$

55,213

$

51,694

$

52,058

$

49,186

Spa

$

68,395

$

64,441

$

64,773

$

62,013

Non-Spa

$

17,684

$

16,455

$

16,533

$

15,501
                 

Average number of land-based spas served 3

  

53

  

56

  

54

  

56
                 

Average weekly land-based spas revenues

$

25,880

$

24,944

$

26,191

$

26,356
                 

Total schools revenues4,5

$

11,804,000

$

11,725,000

$

35,154,000

$

27,884,000
                 

Total wholesale and retail product revenues

$

16,892,000

$

12,788,000

$

46,099,000

$

33,882,000

_____________

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 $53,000 and $126,000 for the three months ended September 30, 2007 and 2006, respectively, and $212,000 and $421,000 for the nine months ended September 30, 2007 and 2006, respectively, relating to the Steiner training school near London, England.

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