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 2010 Financial Results

NASSAU, THE BAHAMAS, February 23, 2011 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2010.

Steiner Leisure's revenues for the fourth quarter ended December 31, 2010 increased 30.0% to $162.3 million from $124.9 million during the comparable quarter in 2009. Net income for the fourth quarter of 2010 was $12.9 million compared with $10.9 million for the same quarter in 2009.

Earnings per share for the fourth quarter ended December 31, 2010 was $0.86 per share, compared with $0.73 per share for the comparable quarter in 2009. The earnings per share data are presented on a diluted basis.

Revenues for the year ended December 31, 2010 increased 26.5% to $620.4 million from $490.6 million in 2009. Net income for the year ended December 31, 2010 was $44.3 million compared with $38.0 million in 2009.

Earnings per share for the year ended December 31, 2010 was $2.94 per share, compared with $2.56 per share 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 151 cruise ships and 70 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 28 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 24, 2011. 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 24, 2011 (approximately 3 hours after the call takes place) through Thursday, March 3, 2011 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-0034 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,
   

2010

  

2009

  

2010

  

2009

Revenues:

    Services

$

105,884

$

87,146

$

410,857

$

343,545

    Products

  

56,390

  

37,794

  

209,528

  

147,032

        Total revenues

162,274

124,940

620,385

490,577
                 

Cost of Sales:

                

    Cost of services

  

85,900

  

70,138

  

335,118

  

277,371

    Cost of products

  

37,705

  

25,584

  

140,956

  

106,817

        Total cost of sales

  

123,605

  

95,722

  

476,074

  

384,188

        Gross profit

  

38,669

  

29,218

  

144,311

  

106,389
                 

Operating Expenses:

                

    Administrative

  

9,355

  

7,003

  

36,133

  

25,032

    Salary and payroll taxes

  

13,578

  

9,386

  

53,325

  

38,218

        Total operating expenses

  

22,933

  

16,389

  

89,458

  

63,250

        Income from operations

  

15,736

  

12,829

  

54,853

  

43,139
                 

Other Income (Expense):

                

    Interest expense

  

(738

)

(248

)

(3,388

)

(349)

    Other income

  

16

  

31

  

151

  

216

        Total other income (expense)

  

(722

)

(217

)

(3,237

)

(133)
                 

Income before provision for income taxes

  

15,014

  

12,612

  

51,616

  

43,006
                 

Provision for income taxes

  

2,059

  

1,703

  

7,293

  

5,014
                 

Net income

$

12,955

$

10,909

$

44,323

$

37,992

Income per share:

    Basic

$

0.87

$

0.75

$

2.99

$

2.61

    Diluted(1)

$

0.86

$

0.73

$

2.94

$

2.56

Weighted average shares outstanding:

    Basic

14,878

14,640

14,832

14,577

    Diluted

15,031

14,923

15,069

14,764

Notes:

  1. Reflects the impact of outstanding options with respect to a subsidiary's common stock of $244,000 for the year ended December 31, 2009. 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,
   

2010

  

2009

  

2010

  

2009
                 

Average number of ships served1:

  

132

  

122

  

128

  

124

Spa

  

107

  

100

  

104

  

99

Non-Spa

  

25

  

22

  

24

  

25
                 

Average total number of staff on ships served:

  


2,350

  


2,089

  


2,242

  


2,080

Spa

  

2,140

  

1,918

  

2,046

  

1,887

Non-Spa

  

210

  

171

  

196

  

193
                 

Revenue per staff per day2:

$

408

$

397

$

422

$

408

Spa

$

420

$

407

$

434

$

423

Non-Spa

$

292

$

278

$

293

$

269
                 

Average weekly revenues:

$

51,013

$

47,412

$

51,680

$

47,920

Spa

$

58,903

$

54,470

$

59,521

$

56,524

Non-Spa

$

17,235

$

15,180

$

16,986

$

14,397
                 

Average number of land-based spas operated3

  


70

  


51

  


68

  


50
                 

Average weekly land-based spas revenues

$

27,700

$

21,514

$

27,710

$

21,630
                 

Total schools revenues

$

16,888,000

$

16,624,000

$

66,630,000

$

61,612,000
                 

Total wholesale and retail product revenues

$

31,743,000

$

17,617,000

$

110,034,000

$

62,100,000

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.