8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549
FORM 8-K
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 24, 2010
Date of report (date of earliest event reported)
STEINER LEISURE LIMITED
(Exact Name of Registrant as Specified in Its Charter)
Commonwealth of The Bahamas
(State or other Jurisdiction of Incorporation)
0-28972	98-0164731
(Commission File Number)	(IRS Employer Identification No.)
Suite 104A, Saffrey Square
P.O. Box N-9306
Nassau, The Bahamas	Not Applicable
(Address of Principal Executive Offices)	(Zip Code)
(242) 356-0006
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.  Results of Operations and Financial Condition

Disclosure under this Item 2.02 is furnished to comply with the SEC requirement that the earnings press release of the registrant be furnished to the SEC under cover of Form 8-K. The Company's earnings press release for the fourth quarter ending December 31, 2009 will be issued after the close of regular trading on the Nasdaq Global Select Market on February 24, 2010.

The information in this Form 8-K, including the exhibit, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general language in such filing, unless it is specifically identified therein as being incorporated therein by reference.

Item 9.01.  Financial Statement and Exhibits

3. Exhibits

99.1 - Press Release issued by Steiner Leisure Limited on February 24, 2010.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	STEINER LEISURE LIMITED
Date: February 24, 2010	/s/ Leonard I. Fluxman
	Leonard I. Fluxman
	President and Chief Executive Officer

EX-99

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 2009 Financial Results

NASSAU, THE BAHAMAS, February 24, 2010 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2009.

Steiner Leisure's revenues for the fourth quarter ended December 31, 2009 increased 1.0% to $124.9 million from $123.7 million during the comparable quarter in 2008. Net income for the fourth quarter of 2009 was $10.9 million compared with $11.8 million for the same quarter in 2008. In the fourth quarter of 2009, we began recognizing breakage related to gift certificates using the redemption recognition method. As a result, during the fourth quarter of 2009, we recorded an increase to revenues and net income of approximately $1.3 million.

Earnings per share for the fourth quarter ended December 31, 2009 was $0.73 per share, compared with $0.79 per share for the comparable quarter in 2008. The earnings per share data are presented on a diluted basis.

Revenues for the year ended December 31, 2009 decreased 9.3% to $490.6 million from $540.8 million in 2008. Net income for the year ended December 31, 2009 was $38.0 million compared with $45.9 million in 2008.

Earnings per share for the year ended December 31, 2009 was $2.56 per share compared with $2.96 per share 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 shipboard and land-based spas and salons.  We provide our services on 126 cruise ships and 67 land-based spas.  Our land-based spas include resort spas, urban hotel spas and day spas and are operated under our Elemis(r), Mandara(r), Chavana(r), Bliss(r) and Remede(r) brands.  In addition, a total of 26 resort and hotel spas are operated under our brands by third parties pursuant to license agreements with the Company.  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, Royal Caribbean Cruises, Seabourn Cruise Lines, Sofitel Luxury Hotels, St. Regis Hotels and Resorts, W Hotels and Res orts and Westin Hotels and Resorts.  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, as well as our Bliss and Remède brands, are also distributed worldwide to exclusive hotels, salons, health clubs, department stores and destination spas.  Our products are also available at www.timetospa.com and www.blissworld.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 25, 2010. 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 25, 2010 (approximately 3 hours after the call takes place) through Thursday, March 4, 2010 at approximately 5:00 pm (EST). You may reach it by dialing (402) 220-3900 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,
			2009		2008			2009		2008
Revenues:
Services	$		87,146	$	83,976	$		343,545	$	360,819
Products			37,794		39,721			147,032		179,950
Total revenues			124,940		123,697			490,577		540,769
Cost of Sales:
Cost of services			70,138		68,394			277,371		294,908
Cost of products			25,584		21,806			106,817		119,005
Total cost of sales			95,722		90,200			384,188		413,913
Gross profit			29,218		33,497			106,389		126,856
Operating Expenses:
Administrative			7,003		10,145			25,032		34,630
Salary and payroll taxes			9,386		10,430			38,218		42,029
Total operating expenses			16,389		20,575			63,250		76,659
Income from operations			12,829		12,922			43,139		50,197
Other Income (Expense):
Interest expense			(248	)	(22	)		(349	)	(269)
Other income			31		109			216		463
Total other income (expense)			(217	)	87			(133	)	194
Income before provision for income taxes			12,612		13,009			43,006		50,391
Provision for income taxes			1,703		1,193			5,014		4,509
Net income	$		10,909	$	11,816	$		37,992	$	45,882
Income per share:
Basic	$		0.75	$	0.81	$		2.61	$	3.01
Diluted(1)	$		0.73	$	0.79	$		2.56	$	2.96
Weighted average shares outstanding:
Basic			14,640		14,664			14,577		15,253
Diluted			14,923		14,786			14,764		15,433

Notes:

1. Reflects the impact of outstanding options with respect to a subsidiary's common stock of $126,000 for the three months ended December 31, 2008, and $244,000 and $190,000 for the years ended December 31, 2009 and 2008, respectively. In July 2009, the Company entered into a transaction with the holders of these stock options in which those stock options were exchanged for restricted share units of the Company.

STATISTICS

		Fourth Quarter Ended						Year Ended
		December 31,						December 31,
		2009			2008				2009			2008
Average number of ships served1:		122		128			124				128
Spa		100		97			99				96
Non-Spa		22		31			25				32
Average total number of staff on ships served:		2,089		2,135			2,080				2,077
Spa		1,918		1,913			1,887				1,844
Non-Spa		171		222			193				233
Revenue per staff per day2:	$	397	$	396		$	408			$	454
Spa	$	407	$	414		$	423			$	474
Non-Spa	$	278	$	241		$	269			$	295
Average weekly revenues:	$	47,412	$	46,222		$	47,920			$	51,538
Spa	$	54,470	$	56,923		$	56,524			$	63,528
Non-Spa	$	15,180	$	12,262		$	14,397			$	15,115
Average number of land-based spas operated3		51		50			50				52
Average weekly land-based spas revenues	$	21,514	$	22,203		$	21,630			$	26,243
Total schools revenues	$	16,624,000	$	14,072,000		$	61,612,000			$	50,575,000
Total wholesale and retail product revenues	$	17,617,000	$	17,226,000		$	62,100,000			$	74,340,000

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.