EX-99 2 stnrexh99_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 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 Resorts 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.