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

Second Quarter 2010 Financial Results

NASSAU, THE BAHAMAS, July 28, 2010 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the second quarter ended June 30, 2010. The quarter and six months ended June 30, 2010 results and statistics below include the results of operations and locations of Bliss World Holdings, Inc. which was acquired on December 31, 2009.

Steiner Leisure's revenues for the second quarter ended June 30, 2010 increased 28.4% to $151.0 million from $117.6 million during the comparable quarter in 2009. Net income for the second quarter, was $10.0 million compared with $8.3 million for the same quarter in 2009. In the second quarter of 2009, Cost of products was negatively impacted by a $4.1 million foreign exchange loss resulting from the weakening of the U.S. Dollar against the U.K. Pound Sterling relating to intercompany inventory purchases which was partially offset by a $1.9 million foreign exchange gain in Administrative expenses resulting from the weakening of the U.S. Dollar against the U.K. Pound Sterling and Euro currencies we were holding.

Earnings per share for the second quarter ended June 30, 2010 was $0.66 per share, compared with $0.56 per share for the comparable quarter in 2009. The earnings per share data are presented on a diluted basis.

Revenues for the six months ended June 30, 2010 increased 26.5% to $297.0 million from $234.8 million during the comparable six months in 2009. Net income for the six months ended June 30, 2010 was $19.6 million compared with $16.3 million for the same six months in 2009. These 2009 results also include the net foreign exchange loss discussed above.

Earnings per share for the six months ended June 30, 2010 was $1.30 per share compared with $1.10 per share for the comparable six months in 2009. 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 131 cruise ships and 69 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 27 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, W Hotels and Westin Hotels and Resorts. Our award-winning Elemis, Bliss and Remede brands are used and sold in our cruise ship and/or land-based spas and 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 (ET) on Thursday, July 29, 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". This call is available for replay from Thursday, July 29, 2010 (approximately 3 hours after the call takes place) until Thursday, August 5, 2010 at approximately 5:00 pm. You may reach it by dialing (203) 369-0218 for both domestic and international calls.

SELECTED FINANCIAL DATA

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

(Unaudited)

   

Second Quarter Ended

  

Six Months Ended

  
   

June 30,

  

June 30,

  
   

2010

  

2009

  

2010

  

2009

  

Revenues:

                  

    Services

$

99,066

$

82,769

$

196,897

$

166,107

  

    Products

  

51,930

  

34,857

  

100,070

  

68,666

  

        Total revenues

150,996

117,626

296,967

234,773

                   

Cost of Sales:

                  

    Cost of services

  

81,448

  

67,191

  

161,008

  

134,674

  

    Cost of products

  

35,200

  

28,754

  

66,319

  

53,783

  

        Total cost of sales

  

116,648

  

95,945

  

227,327

  

188,457

  

        Gross profit

  

34,348

  

21,681

  

69,640

  

46,316

  
                   

Operating Expenses:

                  

    Administrative

  

8,726

  

3,770

  

18,856

  

10,081

  

    Salary and payroll taxes

  

13,386

  

8,719

  

26,563

  

18,335

  

        Total operating expenses

  

22,112

  

12,489

  

45,419

  

28,416

  

        Income from operations

  

12,236

  

9,192

  

24,221

  

17,900

  
                   

Other Income (Expense):

                  

    Interest expense

  

(786

)

(30

)

(1,691

)

(68

)

    Other income

  

76

  

43

  

107

  

157

  

        Total other income (expense)

  

(710

)

13

  

(1,584

)

89

  
                   

Income before provision for income taxes

  

11,526

  

9,205

  

22,637

  

17,989

  
                   

Provision for income taxes

  

1,566

  

876

  

3,020

  

1,717

  
                   

Net income

$

9,960

$

8,329

$

19,617

$

16,272

Income per share:

    Basic

$

0.67

$

0.57

$

1.32

$

1.12

    Diluted(1)

$

0.66

$

0.56

$

1.30

$

1.10

Weighted average shares outstanding:

    Basic

14,838

14,566

14,795

14,541

    Diluted

15,133

14,727

15,076

14,659

Notes:

  1. Considers the impact of stock options outstanding of a subsidiary's common stock of $94,000 and $199,000 for the three and six months ended June 30, 2009, 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

   

Second Quarter Ended

  

Six Months Ended

June 30,

June 30,
   

2010

  

2009

  

2010

  

2009
                 

Average number of ships served1:

  

126

  

122

  

125

  

124

Spa

  

103

  

97

  

103

  

97

Non-Spa

  

23

  

25

  

22

  

27
                 

Average total number of staff on ships served:

  


2,206

  


2,054

  


2,153

  


2,070

Spa

  

2,019

  

1,860

  

1,972

  

1,866

Non-Spa

  

187

  

194

  

181

  

204
                 

Revenue per staff per day2:

$

416

$

404

$

419

$

398

Spa

$

429

$

420

$

431

$

414

Non-Spa

$

280

$

258

$

281

$

247
                 

Average weekly revenues:

$

50,895

$

47,443

$

50,605

$

46,433

Spa

$

58,664

$

56,140

$

58,167

$

55,781

Non-Spa

$

15,985

$

13,933

$

15,954

$

13,020
                 

Average number of land-based spas served 3

  

67

  

50

  

67

  

50
                 

Average weekly land-based spas revenues

$

27,530

$

21,886

$

28,469

$

22,797
                 

Total schools revenues

$

16,128,000

$

14,216,000

$

33,083,000

$

28,921,000
                 

Total wholesale and retail product revenues

$

27,203,000

$

13,592,000

$

51,483,000

$

27,360,000

_____________

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, includes fifteen Bliss spas acquired on December 31, 2009, and reflects the fact that during the period spas were opened or closed and, accordingly, the number of spas served during the period varied.