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 2011 Financial Results

NASSAU, THE BAHAMAS, February 29, 2012 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2011. During the fourth quarter of 2011, we closed on the acquisitions of Ideal Image Development, Inc. ("Ideal Image") and Cortiva Group, Inc. ("Cortiva"). The net impact of these acquisitions on Steiner Leisure's results for the fourth quarter of 2011 was dilutive by  $0.02 per share. This impact included transaction costs and interest expense and related financing fees.

Steiner Leisure's revenues for the fourth quarter ended December 31, 2011 increased 14.6% to $185.9 million from $162.3 million during the comparable quarter in 2010. Net income for the fourth quarter of 2011 was $12.3 million compared with $12.9 million for the same quarter in 2010.

Earnings per share for the fourth quarter ended December 31, 2011 was $0.81 per share, compared with $0.86 per share for the comparable quarter in 2010. The earnings per share data are presented on a diluted basis.

Revenues for the year ended December 31, 2011 increased 13.1% to $701.6 million from $620.4 million in 2010. Net income for the year ended December 31, 2011 was $50.9 million compared with $44.3 million in 2010.

Earnings per share for the year ended December 31, 2011 was $3.35 per share, compared with $2.94 per share in 2010. The above earnings per share data are presented on a diluted basis.

Steiner Leisure Limited is a worldwide provider and innovator in the fields of beauty, wellness and education. We are dedicated to maintaining the highest quality standards and continually evolving to include and anticipate new developments within our industry. We aim to maintain and expand our existing diverse portfolio of services, products and brands, as well as to seek out new opportunities to complement our business.

Our services include traditional and alternative massage, body and skin treatment options, fitness, acupuncture, herbal medicine, medi-spa treatments and laser hair removal. We are committed to providing our customers with a wide-ranging assortment of beauty products, including premium quality options developed by us under our own brands, as well as those purchased from third parties.

Our distribution channels include our shipboard and land-based spas and salons, destination spas, health clubs, department stores and third party retail outlets and distributors. We also sell our products on certain British Airways flights, on QVC, by catalog, and online through our websites, including www.timetospa.com and www.blissworld.com.

Our post secondary schools offer programs in massage therapy and skin care, among others, and, along with our recruiting and training operations, prepare spa professionals for careers in the health and wellness industry, including within the Steiner family of companies.

Our cruise line operations are conducted in spas onboard 152 ships, including Azamara Club Cruises, Carnival Cruise Lines, Celebrity Cruises, Crystal Cruises, Cunard Cruise Line, Holland America Line, Norwegian Cruise Line, P&O Cruises, Princess Cruises, Royal Caribbean Cruises, Seabourn Cruise Lines, Silversea Cruises, Thomson Cruises and Windstar Cruises.

Our land-based spa operations are carried out under our Elemis®, Mandara®, Chavana®, Bliss® and Remède® brands and take place in 71 locations, including resort spas, urban hotel spas and day spas. 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 land-based customers include Caesar's Entertainment, Hilton Hotels, InterContinental Hotels and Resorts, Kerzner International, Loews Hotels, Marriott Hotels, Nikko Hotels, Planet Hollywood, Sofitel Luxury Hotels, St. Regis Hotels, W Hotels and Resorts and Westin Hotels and Resorts.

Our Ideal Image customized laser hair removal services are provided by highly trained, experienced practitioners through a nationwide network of 76 treatment centers (17 of which are operated by franchisees) across 23 states. 

We develop and sell a variety of high quality beauty products under our Elemis, La Thérapie™, Bliss, Remède, Laboratoire Remède® and Jou® brands.

Our schools operations consist of 12 post secondary schools (comprised of a total of 30 campuses) located in Phoenix, Scottsdale, Tempe and Tucson, Arizona; Westminster and Aurora, Colorado; Groton, Newington and Westport, Connecticut; Miami, Orlando, Pompano Beach, Sarasota and Tampa/St. Pete, Florida; Chicago, Crystal Lake and Woodridge, Illinois; Baltimore, Maryland; Boston, Massachusetts; Las Vegas, Nevada; Hoboken and Wall, New Jersey; King of Prussia and York, Pennsylvania; Dallas, Texas; Salt Lake City and Lindon, Utah; Charlottesville, Virginia; and Federal Way and Seattle, Washington.  Offering programs in massage therapy and, in some cases, skin care, these schools train and qualify spa professionals for health and beauty positions within the industry, including our own operations.  

As part of our employee recruitment operations for our shipboard spas, we provide education to our shipboard employees through our rigorous training programs, at our primary training facilities near London, England or one of our satellite training centers in South Africa and the Philippines. These employees are sourced primarily from the British Isles, Australia, South Africa, Southeast Asia, Canada, the Caribbean and continental Europe.  

The Company will be holding a conference call at 11:00 am (EST) on Thursday, March 1, 2012. 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, March 1st (approximately 3 hours after the call takes place) through Thursday, March 8, 2012 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-3549 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,
   

2011 (1)

  

2010

  

2011(1)

  

2010

Revenues:

    Services

$

125,757

$

105,884

$

470,756

$

410,857

    Products

  

60,128

  

56,390

  

230,876

  

209,528

        Total revenues

185,885

162,274

701,632

620,385
                 

Cost of Sales:

                

    Cost of services

  

101,411

  

85,900

  

382,341

  

335,118

    Cost of products

  

41,878

  

37,705

  

160,754

  

140,956

        Total cost of sales

  

143,289

  

123,605

  

543,095

  

476,074

        Gross profit

  

42,596

  

38,669

  

158,537

  

144,311
                 

Operating Expenses:

                

    Administrative

  

13,176

  

9,355

  

41,776

  

36,133

    Salary and payroll taxes

  

14,443

  

13,578

  

57,048

  

53,325

        Total operating expenses

  

27,619

  

22,933

  

98,824

  

89,458

        Income from operations

  

14,977

  

15,736

  

59,713

  

54,853
                 

Other Income (Expense):

                

    Interest expense

  

(1,138

)

(738

)

(2,716

)

(3,388)

    Other income

  

405

  

16

  

682

  

151

        Total other income (expense)

  

(733

)

(722

)

(2,034

)

(3,237)
                 

Income before provision for income taxes

  

14,244

  

15,014

  

57,679

  

51,616
                 

Provision for income taxes

  

1,934

  

2,059

  

6,744

  

7,293
                 

Net income

$

12,310

$

12,955

$

50,935

$

44,323

Income per share:

    Basic

$

0.82

$

0.87

$

3.39

$

2.99

    Diluted

$

0.81

$

0.86

$

3.35

$

2.94

Weighted average shares outstanding:

    Basic

15,103

14,878

15,013

14,832

    Diluted

15,237

15,031

15,217

15,069

Notes:

  1. Includes the results of operations of Ideal Image and Cortiva subsequent to their acquisitions in November 2011.

 

 

STATISTICS

   

Fourth Quarter Ended

  

Year Ended

December 31,

December 31,
   

2011

  

2010

  

2011

  

2010
                 

Average number of ships served1:

  

149

  

132

  

150

  

128

Spa

  

115

  

107

  

114

  

104

Non-Spa

  

34

  

25

  

36

  

24
                 

Average total number of staff on ships served:

  


2,665

  


2,350

  


2,608

  


2,242

Spa

  

2,386

  

2,140

  

2,324

  

2,046

Non-Spa

  

279

  

210

  

284

  

196
                 

Revenue per staff per day2:

$

392

$

408

$

416

$

422

Spa

$

406

$

420

$

431

$

434

Non-Spa

$

276

$

292

$

294

$

293
                 

Average weekly revenues:

$

49,194

$

51,013

$

50,562

$

51,680

Spa

$

59,106

$

58,903

$

61,287

$

59,521

Non-Spa

$

15,800

$

17,235

$

16,350

$

16,986
                 

Average number of land-based spas operated3

  


68

  


70

  


68

  


68
                 

Average weekly land-based spas revenues

$

28,565

$

27,700

$

29,395

$

27,710
                 

Total schools revenues

$

17,976,000

$

16,888,000

$

67,526,000

$

66,630,000
                 

Total wholesale and retail product revenues

$

34,034,000

$

31,743,000

$

122,285,000

$

110,034,000
                 

Average number of Ideal Image locations3, 4

  

58

  

--

  

58

  

--
                 

Average weekly Ideal Image revenues4

$

23,335

$

--

$

23,335

$

--
                 

Ideal Image revenues

$

12,104,000

$

--

$

12,104,000

$

--

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 and Ideal Image locations operated reflects the fact that during the period spas and centers were opened or closed and, accordingly, the number of spas and centers served during the period varied.

4 Excludes 17 centers which are operated by franchisees.