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 2009 Financial Results

NASSAU, THE BAHAMAS, October 28, 2009 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the third quarter and nine months ended September 30, 2009.

Steiner Leisure's revenues for the third quarter ended September 30, 2009 decreased 9.6% to $130.9 million from $144.7 million during the comparable quarter in 2008. Net income for the third quarter of 2009 was $10.8 million compared with $13.8 million for the same quarter in 2008. Net income for the third quarter of 2009 includes $1.2 million of nonrecurring costs relating to a proposed strategic opportunity.

Earnings per share for the third quarter ended September 30, 2009 was $0.73 per share, compared with $0.89 per share for the comparable quarter in 2008. The earnings per share data are presented on a diluted basis.

Revenues for the nine months ended September 30, 2009 decreased 12.3% to $365.6 million from $417.1 million during the comparable nine months in 2008. Net income for the nine months ended September 30, 2009 was $27.1 million compared with $34.1 million for the same nine months in 2008.

Earnings per share for the nine months ended September 30, 2009 was $1.82 per share compared with $2.17 per share for the comparable nine months in 2008. 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 126 cruise ships and in 51 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 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 29, 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, October 29, 2009 (approximately 3 hours after the call takes place) through Thursday, November 5, 2009 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-3991 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,
   

2009

  

2008

  

2009

  

2008

Revenues:

                

    Services

$

90,292

$

96,400

$

256,399

$

276,843

    Products

  

40,572

  

48,283

  

109,238

  

140,229

        Total revenues

130,864

144,683

365,637

417,072
                 

Cost of Sales:

                

    Cost of services

  

72,559

  

79,079

  

207,233

  

226,514

    Cost of products

  

27,450

  

31,240

  

81,233

  

97,199

        Total cost of sales

  

100,009

  

110,319

  

288,466

  

323,713

        Gross profit

  

30,855

  

34,364

  

77,171

  

93,359
                 

Operating Expenses:

                

    Administrative

  

7,948

  

8,667

  

18,029

  

24,485

    Salary and payroll taxes

  

10,497

  

10,578

  

28,832

  

31,599

        Total operating expenses

  

18,445

  

19,245

  

46,861

  

56,084

        Income from operations

  

12,410

  

15,119

  

30,310

  

37,275
                 

Other Income (Expense):

                

    Interest expense

  

(33

)

(32

)

(101

)

(247)

    Other income

  

28

  

103

  

185

  

354

        Total other income (expense)

  

(5

)

71

  

84

  

107
                 

Income before provision for income taxes

  

12,405

  

15,190

  

30,394

  

37,382
                 

Provision for income taxes

  

1,594

  

1,398

  

3,311

  

3,316
                 
                 

Net income

$

10,811

$

13,792

$

27,083

$

34,066

Income per share:

    Basic

$

0.74

$

0.91

$

1.86

$

2.20

    Diluted (1)

$

0.73

$

0.89

$

1.82

$

2.17

Weighted average shares outstanding:

    Basic

14,585

15,211

14,556

15,451

    Diluted

14,837

15,419

14,719

15,649

 

 

Notes:

  1. Considers the impact of stock options outstanding of a subsidiary's common stock of $34,000 and $76,000 for the three months ended September 30, 2009 and 2008 and $244,000 and $64,000 for the nine months ended September 30, 2009 and 2008, respectively. In July 2009, the Company entered into a transaction with the shareholders of these stock options in which they were exchanged for restricted share units of the Company.

STATISTICS

   

Third Quarter Ended

  

Nine Months Ended

September 30,

September 30,
   

2009

  

2008

  

2009

  

2008
                 

Average number of ships served1:

  

126

  

132

  

125

  

128

Spa

  

101

  

98

  

98

  

96

Non-Spa

  

25

  

34

  

27

  

32
                 

Average total number of staff on ships served:

  


2,092

  


2,132

  


2,077

  


2,057

Spa

  

1,898

  

1,889

  

1,877

  

1,821

Non-Spa

  

194

  

243

  

200

  

236
                 

Revenue per staff per day2:

$

440

$

484

$

412

$

474

Spa

$

454

$

504

$

428

$

495

Non-Spa

$

311

$

325

$

268

$

311
                 

Average weekly revenues:

$

51,302

$

54,822

$

48,088

$

53,320

Spa

$

59,949

$

68,008

$

57,219

$

65,776

Non-Spa

$

16,788

$

16,417

$

14,228

$

16,030
                 

Average number of land-based spas served 3

  

50

  

50

  

50

  

52
                 

Average weekly land-based spas revenues

$

19,473

$

25,338

$

21,670

$

27,553
                 

Total schools revenues

$

16,067,000

$

13,681,000

$

44,988,000

$

36,503,000
                 

Total wholesale and retail product revenues

$

17,123,000

$

19,771,000

$

44,483,000

$

57,115,000

_____________

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.