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

Fourth Quarter 2008 Financial Results

NASSAU, THE BAHAMAS, February 25, 2009 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2008.

Steiner Leisure's revenues for the fourth quarter ended December 31, 2008 decreased 8.5% to $123.7 million from $135.2 million during the comparable quarter in 2007. Net income for the fourth quarter of 2008 was $11.8 million compared with $11.0 million for the same quarter in 2007. Net income for the fourth quarter of 2008 includes a net $3.5 million pre-tax gain resulting from the strengthening of the U.S. dollar against the British pound and the Euro.

Earnings per share for the fourth quarter ended December 31, 2008 was $0.79 per share, compared with $0.67 per share for the comparable quarter in 2007. The earnings per share data are presented on a diluted basis.

Revenues for the year ended December 31, 2008 rose 2.2% to $540.8 million from $529.2 million in 2007. Net income for the year ended December 31, 2008 was $45.9 million compared with $44.7 million in 2007. Net income for 2008 includes a net $5.3 million pre-tax gain resulting from the strengthening of the U.S. dollar against the British pound and the Euro.

Earnings per share for the year ended December 31, 2008 was $2.96 per share compared with $2.63 per share 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 131 cruise ships, and in 50 resort spas and two luxury day spas. Our cruise line and land-based resort customers include Carnival Cruise Lines, Celebrity Cruises, Crystal Cruises, Harrah's Entertainment, Hilton Hotels, Holland America Line, InterContinental Hotels and Resorts, Kerzner International, Loews Hotels, Marriott Hotels, Nikko Hotels, Norwegian Cruise Line, Planet Hollywood, Princess Cruises, Ritz-Carlton, Royal Caribbean Cruises, Seabourn Cruise Lines, Sofitel Luxury Hotels, Starwood Hotels and Resorts and Westin Hotels and Resorts. Our Elemis Limited subsidiary manufactures its Elemis(r) 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(r), Ionithermie, and Steiner Hair Care, are available at www.timetospa.com.

Steiner Leisure also 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 Groton, Newington 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, February 26, 2009. 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, February 26, 2009 (approximately 3 hours after the call takes place) through Thursday, March 5, 2009 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-3181 for both domestic and international calls.

SELECTED FINANCIAL DATA

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

(Unaudited)

   

Fourth Quarter Ended

Year Ended
   

December 31,

December 31,
   

2008

  

2007

  

2008

  

2007

Revenues:

    Services

$

83,976

$

88,005

$

360,819

$

351,503

    Products

  

39,721

  

47,208

  

179,950

  

177,717

        Total revenues

123,697

135,213

540,769

529,220
                 

Cost of Sales:

                

    Cost of services

  

68,394

  

71,343

  

294,908

  

283,596

    Cost of products

  

21,806

  

33,144

  

119,005

  

127,045

        Total cost of sales

  

90,200

  

104,487

  

413,913

  

410,641

        Gross profit

  

33,497

  

30,726

  

126,856

  

118,579
                 

Operating Expenses:

                

    Administrative

  

10,145

  

9,239

  

34,630

  

33,080

    Salary and payroll taxes

  

10,430

  

9,724

  

42,029

  

37,816

        Total operating expenses

  

20,575

  

18,963

  

76,659

  

70,896

        Income from operations

  

12,922

  

11,763

  

50,197

  

47,683
                 

Other Income (Expense):

                

    Interest expense

  

(22

)

(87

)

(269

)

(367)

    Other income

  

109

  

243

  

463

  

1,595

        Total other income (expense)

  

87

  

156

  

194

  

1,228
                 

Income before provision for income taxes

  

13,009

  

11,919

  

50,391

  

48,911
                 

Provision for income taxes

  

1,193

  

936

  

4,509

  

4,214
                 

Net income

$

11,816

$

10,983

$

45,882

$

44,697

Income per share:

    Basic

$

0.81

$

0.68

$

3.01

$

2.69

    Diluted(1)

$

0.79

$

0.67

$

2.96

$

2.63

Weighted average shares outstanding:

    Basic

14,664

16,055

15,253

16,626

    Diluted

14,786

16,413

15,433

16,990

Notes:

  1. Considers the impact of outstanding stock options of a subsidiary's common stock of $126,000 and $19,000 for the three months ended December 31, 2008 and 2007, respectively, and $190,000 and $55,000 for the year ended December 31, 2008 and 2007, respectively.

 

 

STATISTICS

   

Fourth Quarter Ended

  

Year Ended

December 31,

December 31,
   

2008

  

2007

  

2008

  

2007
                 

Average number of ships served1:

  

128

  

126

  

128

  

127

Spa

  

97

  

95

  

96

  

94

Non-Spa

  

31

  

31

  

32

  

33
                 

Average total number of staff on ships served:

  


2,135

  


1,986

  


2,077

  


1,978

Spa

  

1,913

  

1,751

  

1,844

  

1,741

Non-Spa

  

222

  

235

  

233

  

237
                 

Revenue per staff per day2:

$

396

$

457

$

454

$

472

Spa

$

414

$

475

$

474

$

492

Non-Spa

$

241

$

317

$

295

$

327
                 

Average weekly revenues:

$

46,222

$

50,204

$

51,538

$

51,592

Spa

$

56,923

$

61,430

$

63,528

$

63,921

Non-Spa

$

12,262

$

16,472

$

15,115

$

16,519
                 

Average number of land-based spas operated3

  


50

  


53

  


52

  


54
                 

Average weekly land-based spas revenues

$

22,203

$

26,784

$

26,243

$

26,339
                 

Total schools revenues

$

14,072,000

$

11,073,000

$

50,575,000

$

46,226,000
                 

Total wholesale and retail product revenues

$

17,226,000

$

21,904,000

$

74,340,000

$

68,003,000

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 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.