Attached files
file | filename |
---|---|
8-K/A - STEINER LEISURE Ltd | stnr8ka.htm |
EX-23 - STEINER LEISURE Ltd | stnrexhibit23_1.htm |
EX-99 - STEINER LEISURE Ltd | stnrexhibit99_1.htm |
EX-99 - STEINER LEISURE Ltd | stnrexhibit99_2.htm |
Exhibit 99.3
Steiner Leisure Limited and Subsidiaries
Unaudited Pro Forma
Condensed Consolidated Financial Statements
On December 31, 2009, Steiner Leisure Limited ("Steiner Leisure") acquired all of the stock of Bliss World Holdings, Inc. ("Bliss") from Starwood Hotel & Resorts Worldwide, Inc. for $100.0 million in cash less cash acquired. Bliss is a spa and skincare company with hotel and day spa locations, offering services under the Bliss, Remède and Laboratoire Remède brands. Bliss also operates an e-commerce and catalog business and distributes its products through various third parties.
The following Unaudited Pro Forma Condensed Consolidated Financial Statements of Steiner Leisure reflect adjustments to the historical consolidated financial statements of Steiner Leisure to give effect of the Bliss acquisition to the Unaudited Pro Forma Condensed Consolidated Financial Statements as of September 30, 2009 for the Unaudited Pro Forma Condensed Consolidated Balance Sheet and as if the transaction occurred on January 1, 2008 for the Unaudited Pro Forma Condensed Consolidated Statements of Income for the year ended December 31, 2008 and the nine months ended September 30, 2009.
The assumptions used and pro forma adjustments derived from such assumptions are based on currently available information and Steiner Leisure believes such assumptions are reasonable under the circumstances.
The following Unaudited Pro Forma Condensed Consolidated Financial Statements should be read in conjunction with the historical consolidated financial statements of Steiner Leisure and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of Steiner Leisure included in the December 31, 2008 Annual Report on Form 10-K of Steiner Leisure.
These Unaudited Pro Forma Condensed Consolidated Financial Statements are not necessarily indicative of Steiner Leisure's results of operations or financial condition had the acquisition been completed on the dates assumed. In addition, they are not necessarily indicative of Steiner Leisure's future results of operations or financial condition.
Steiner Leisure Limited
Pro Forma Condensed Consolidated Balance Sheets
As of September 30, 2009
(Unaudited)
(in thousands, except per share data)
|
Bliss |
|
|
|||||||||
ASSETS |
||||||||||||
CURRENT ASSETS: |
||||||||||||
Cash and cash equivalents |
$ |
68,831 |
$ |
2,795 |
$ |
(30,151 |
)b |
$ |
39,363 |
|||
(2,112 |
)d |
|||||||||||
Accounts receivable, net |
20,446 |
5,265 |
-- |
25,711 |
||||||||
Accounts receivable-students, net |
21,026 |
-- |
-- |
21,026 |
||||||||
Inventories |
26,585 |
11,338 |
(162 |
)d |
37,761 |
|||||||
Prepaid expenses and other current assets |
9,141 |
3,531 |
-- |
12,672 |
||||||||
Total current assets |
146,029 |
22,929 |
(32,425 |
) |
136,533 |
|||||||
PROPERTY AND EQUIPMENT, net |
52,114 |
31,727 |
-- |
|
83,841 |
|||||||
GOODWILL |
75,405 |
20,476 |
17,661 |
c |
113,542 |
|||||||
OTHER ASSETS: |
||||||||||||
Intangible assets, net |
5,847 |
8,469 |
12,931 |
c |
27,247 |
|||||||
Other |
10,333 |
-- |
-- |
10,333 |
||||||||
Total other assets |
16,180 |
8,469 |
12,931 |
37,580 |
||||||||
Total assets |
$ |
289,728 |
$ |
83,601 |
$ |
(1,833 |
) |
$ |
371,496 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||
CURRENT LIABILITIES: |
||||||||||||
Accounts payable |
$ |
7,627 |
$ |
3,479 |
$ |
-- |
$ |
11,106 |
||||
Accrued expenses |
30,745 |
2,122 |
-- |
32,867 |
||||||||
Current portion of deferred rent |
1,081 |
-- |
-- |
1,081 |
||||||||
Current portion of deferred tuition revenue |
24,866 |
-- |
-- |
24,866 |
||||||||
Gift certificate liability |
3,597 |
8,888 |
(202 |
)d |
12,283 |
|||||||
Income taxes payable |
1,834 |
-- |
-- |
1,834 |
||||||||
Due to related parties, net |
-- |
42,492 |
(42,492 |
)d |
-- |
|||||||
Total current liabilities |
69,750 |
56,981 |
(42,694 |
) |
84,037 |
|||||||
DEFERRED INCOME TAX LIABILITY |
3,406 |
-- |
6,990 |
e |
10,396 |
|||||||
LONG-TERM DEFERRED RENT |
10,358 |
1,326 |
(1,326 |
)d |
10,358 |
|||||||
LONG-TERM DEFERRED TUITION REVENUE |
1,240 |
-- |
-- |
1,240 |
||||||||
LONG-TERM DEBT |
-- |
-- |
60,500 |
b |
60,500 |
|||||||
SHAREHOLDERS' EQUITY: |
||||||||||||
Preferred shares, $.01 par value; 10,000,000 shares authorized, none issued and outstanding |
|
|
|
|
||||||||
Common shares, $.01 par value; 100,000,000 shares authorized, 22,906,000 shares issued in 2009 |
|
|
|
|
||||||||
Additional paid-in capital |
136,528 |
26,969 |
(26,969 |
)a |
136,528 |
|||||||
Accumulated other comprehensive income (loss) |
(2,571 |
) |
1,568 |
(1,568 |
)a |
(2,571 |
) |
|||||
Retained earnings |
323,287 |
(3,243 |
) |
3,234 |
a |
323,278 |
||||||
Treasury shares |
(252,499 |
) |
-- |
-- |
(252,499 |
) |
||||||
Total shareholders' equity |
204,974 |
25,294 |
(25,303 |
) |
204,965 |
|||||||
Total liabilities and shareholders' equity |
$ |
289,728 |
$ |
83,601 |
$ |
(1,833 |
) |
$ |
371,496 |
Steiner Leisure Limited
Pro Forma Condensed Consolidated Statement of Income
For the nine months ended September 30, 2009
(Unaudited)
(in thousands, except per share data)
|
Bliss |
|
|
|||||||||
REVENUES: |
||||||||||||
Services |
$ |
256,399 |
$ |
25,789 |
$ |
-- |
$ |
282,188 |
||||
Products |
109,238 |
35,172 |
-- |
144,410 |
||||||||
Total revenues |
365,637 |
60,961 |
-- |
426,598 |
||||||||
COST OF REVENUES: |
||||||||||||
Cost of services |
207,233 |
23,476 |
-- |
230,709 |
||||||||
Cost of products |
81,233 |
21,323 |
-- |
102,556 |
||||||||
Total cost of revenues |
288,466 |
44,799 |
-- |
333,265 |
||||||||
Gross profit |
77,171 |
16,162 |
-- |
93,333 |
||||||||
OPERATING EXPENSES: |
||||||||||||
Administrative |
18,029 |
7,804 |
8 |
g |
25,349 |
|||||||
(492 |
)h |
|||||||||||
Salary and payroll taxes |
28,832 |
9,544 |
(569 |
)h |
37,807 |
|||||||
Total operating expenses |
46,861 |
17,348 |
(1,053 |
) |
63,156 |
|||||||
Income (loss) from operations |
30,310 |
(1,186 |
) |
1,053 |
30,177 |
|||||||
OTHER INCOME (EXPENSES), NET: |
||||||||||||
Interest expense |
(101 |
) |
(1,685 |
) |
97 |
f |
(1,689 |
) |
||||
Other income |
185 |
4 |
-- |
189 |
||||||||
Total other income (expense), net |
84 |
(1,681 |
) |
97 |
(1,500 |
) |
||||||
Income (loss) before provision for income taxes |
30,394 |
(2,867 |
) |
1,150 |
28,677 |
|||||||
PROVISION FOR INCOME TAXES |
3,311 |
237 |
586 |
e |
4,134 |
|||||||
Net income (loss) |
$ |
27,083 |
$ |
(3,104 |
) |
$ |
564 |
$ |
24,543 |
|||
Income per share: |
||||||||||||
Basic |
$ |
1.85 |
$ |
1.69 |
||||||||
Diluted |
$ |
1.82 |
$ |
1.65 |
||||||||
Shares |
||||||||||||
Basic |
14,556 |
14,556 |
||||||||||
Diluted |
14,719 |
14,719 |
||||||||||
Steiner Leisure Limited
Pro Forma Condensed Consolidated Statement of Income
For the twelve months ended December 31, 2008
(Unaudited)
(in thousands, except per share data)
|
Bliss |
|
|
|||||||||
REVENUES: |
||||||||||||
Services |
$ |
360,819 |
$ |
42,021 |
$ |
-- |
$ |
402,840 |
||||
Products |
179,950 |
64,497 |
-- |
244,447 |
||||||||
Total revenues |
540,769 |
106,518 |
-- |
647,287 |
||||||||
COST OF REVENUES: |
||||||||||||
Cost of services |
294,908 |
37,276 |
-- |
332,184 |
||||||||
Cost of products |
119,005 |
38,359 |
-- |
157,364 |
||||||||
Total cost of revenues |
413,913 |
75,635 |
-- |
489,548 |
||||||||
Gross profit |
126,856 |
30,883 |
-- |
157,739 |
||||||||
OPERATING EXPENSES: |
||||||||||||
Administrative |
34,630 |
15,704 |
10 |
g |
50,044 |
|||||||
(300 |
)h |
|||||||||||
Salary and payroll taxes |
42,029 |
15,894 |
(758 |
)h |
57,165 |
|||||||
Total operating expenses |
76,659 |
31,598 |
(1,048 |
) |
107,209 |
|||||||
Income (loss) from operations |
50,197 |
(715 |
) |
1,048 |
50,530 |
|||||||
OTHER INCOME (EXPENSES), NET: |
||||||||||||
Interest expense |
(269 |
) |
(2,167 |
) |
120 |
f |
(2,316 |
) |
||||
Other income |
463 |
148 |
-- |
611 |
||||||||
Total other income (expense), net |
194 |
(2,019 |
) |
120 |
(1,705 |
) |
||||||
Income (loss) before provision for income taxes |
50,391 |
(2,734 |
) |
1,168 |
48,825 |
|||||||
PROVISION FOR INCOME TAXES |
4,509 |
445 |
781 |
e |
5,735 |
|||||||
Net income (loss) |
$ |
45,882 |
$ |
(3,179 |
) |
$ |
387 |
$ |
43,090 |
|||
Income per share: |
||||||||||||
Basic |
$ |
3.01 |
$ |
2.83 |
||||||||
Diluted |
$ |
2.96 |
$ |
2.78 |
||||||||
Shares |
||||||||||||
Basic |
15,253 |
15,253 |
||||||||||
Diluted |
15,433 |
15,433 |
||||||||||
Notes:
- Reflects the elimination of Bliss' equity and retained earnings.
- Cash and debt financing incurred in connection with the acquisition of Bliss.
- Reflects the elimination of Bliss' recorded goodwill and intangible asset and the addition of goodwill and intangibles initially identified in connection with the acquisition of Bliss by the Company. This allocation is preliminary and subject to change.
- Reflects fair market value adjustments. This amount is preliminary and subject to change.
- Reflects tax adjustments recorded in connection with the acquisition of Bliss. This amount is preliminary and subject to change.
- The pro forma interest expense assumes borrowing funds at 3.5% (plus LIBOR) annual interest rate for the purchase price of $100 million. The annual interest rate is based on Steiner's credit facility rate as of December 31, 2009. The interest expense assumes the closing of the transaction and funds were borrowed on January 1, 2008. The interest expense recorded by Bliss has been eliminated.
- The pro forma amortization expense assumes the transaction closed January 1, 2008. The following table reflects the purchase price allocation which is preliminary and subject to change.
|
Purchase Price |
|
||
Trade names |
$ |
21,000 |
Indefinite |
|
Leases, net |
100 |
Lease terms |
||
Total |
$ |
21,100 |