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 2008 Financial Results

NASSAU, THE BAHAMAS, October 29, 2008 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the third quarter and nine months ended September 30, 2008.

Steiner Leisure's revenues for the third quarter ended September 30, 2008 rose 3.0% to $144.7 million from $140.4 million during the comparable quarter in 2007. Net income for the third quarter of 2008 was $13.8 million compared with $11.4 million for the same quarter in 2007. Net income for the third quarter of 2008 includes a net $1.4 million gain resulting from the strengthening of the U.S. dollar against the British pound and the Euro.

Earnings per share for the third quarter ended September 30, 2008 was $0.89 per share, compared with $0.68 per share for the comparable quarter in 2007. The earnings per share data are presented on a diluted basis.

Revenues for the nine months ended September 30, 2008 rose 5.9% to $417.1 million from $394.0 million during the comparable nine months in 2007. Net income for the nine months ended September 30, 2008 was $34.1 million compared with $33.7 million for the same nine months in 2007.

Earnings per share for the nine months ended September 30, 2008 was $2.17 per share compared with $1.96 per share for the comparable nine months in 2007. The above earnings per share data are presented on a diluted basis.

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 133 cruise ships, and in 48 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 five post secondary schools (comprised of a total of 17 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; Westminster and Aurora, Colorado; and Newington, Groton and Westport, Connecticut. 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, October 30, 2008. 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, October 30, 2008 (approximately 3 hours after the call takes place) through Thursday, November 6, 2008 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-0247 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,
   

2008

  

2007

  

2008

  

2007

Revenues:

                

    Services

$

96,400

$

92,682

$

276,843

$

263,498

    Products

  

48,283

  

47,749

  

140,229

  

130,509

        Total revenues

144,683

140,431

417,072

394,007
                 

Cost of Sales:

                

    Cost of services

  

79,079

  

75,269

  

226,514

  

212,253

    Cost of products

  

31,240

  

35,185

  

97,199

  

93,901

        Total cost of sales

  

110,319

  

110,454

  

323,713

  

306,154

        Gross profit

  

34,364

  

29,977

  

93,359

  

87,853
                 

Operating Expenses:

                

    Administrative

  

8,667

  

8,332

  

24,485

  

23,841

    Salary and payroll taxes

  

10,578

  

9,452

  

31,599

  

28,092

        Total operating expenses

  

19,245

  

17,784

  

56,084

  

51,933

        Income from operations

  

15,119

  

12,193

  

37,275

  

35,920
                 

Other Income (Expense):

                

    Interest expense

  

(32

)

(132

)

(247

)

(280)

    Other income

  

103

  

397

  

354

  

1,352

        Total other income (expense)

  

71

  

265

  

107

  

1,072
                 

Income before provision for income taxes

  

15,190

  

12,458

  

37,382

  

36,992
                 

Provision for income taxes

  

1,398

  

1,085

  

3,316

  

3,278
                 
                 

Net income

$

13,792

$

11,373

$

34,066

$

33,714

Income per share:

    Basic

$

0.91

$

0.69

$

2.20

$

2.00

    Diluted (1)

$

0.89

$

0.68

$

2.17

$

1.96

Weighted average shares outstanding:

    Basic

15,211

16,519

15,451

16,818

    Diluted

15,419

16,837

15,649

17,182

 

 

Notes:

  1. Considers the impact of stock options outstanding of a subsidiary's common stock of $76,000 for the three months ended September 30, 2008 and $64,000 and $37,000 for the nine months ended September 30, 2008 and 2007, 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,
   

2008

  

2007

  

2008

  

2007
                 

Average number of ships served1:

  

132

  

129

  

128

  

127

Spa

  

98

  

95

  

96

  

94

Non-Spa

  

34

  

34

  

32

  

33
                 

Average total number of staff on ships served:

  


2,132

  


2,021

  


2,057

  


1,976

Spa

  

1,889

  

1,784

  

1,821

  

1,737

Non-Spa

  

243

  

237

  

236

  

239
                 

Revenue per staff per day2:

$

484

$

503

$

474

$

477

Spa

$

504

$

523

$

495

$

498

Non-Spa

$

325

$

357

$

311

$

331
                 

Average weekly revenues:

$

54,822

$

55,213

$

53,320

$

52,058

Spa

$

68,008

$

68,395

$

65,776

$

64,773

Non-Spa

$

16,417

$

17,684

$

16,030

$

16,533
                 

Average number of land-based spas served 3

  

50

  

53

  

52

  

54
                 

Average weekly land-based spas revenues

$

25,338

$

25,880

$

27,553

$

26,191
                 

Total schools revenues

$

13,681,000

$

11,804,000

$

36,503,000

$

35,154,000
                 

Total wholesale and retail product revenues

$

19,771,000

$

16,892,000

$

57,115,000

$

46,099,000

_____________

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.