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8-K - STEINER LEISURE Ltdstnr8k.htm

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

Third Quarter 2010 Financial Results

NASSAU, THE BAHAMAS, October 27, 2010 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the third quarter and nine months ended September 30, 2010. The quarter and nine months ended September 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 third quarter ended September 30, 2010 increased 23.1% to $161.1 million from $130.9 million during the comparable quarter in 2009. Net income for the third quarter of 2010 was $11.8 million compared with $10.8 million for the same quarter in 2009. Net income for the third quarter of 2010 includes a one time charge of $427,000 relating to tax planning for a foreign subsidiary. Net income for the third quarter of 2009 included $1.2 million of transaction costs relating to the acquisition of Bliss World Holdings, Inc.

Earnings per share for the third quarter ended September 30, 2010 was $0.78 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 nine months ended September 30, 2010 increased 25.3% to $458.1 million from $365.6 million during the comparable nine months in 2009. Net income for the nine months ended September 30, 2010 was $31.4 million compared with $27.1 million for the same nine months in 2009. These 2010 and 2009 results include the one time charge and transaction costs discussed above.

Earnings per share for the nine months ended September 30, 2010 was $2.08 per share compared with $1.82 per share for the comparable nine 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 133 cruise ships and 71 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 in other industry entities or within the Steiner family of companies.

The Company will be holding a conference call at 11:00 am (EST) on Thursday, October 28, 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, October 28, 2010 (approximately 3 hours after the call takes place) through Thursday, November 4, 2010 at approximately 5:00 pm (EST). You may reach it by dialing (402) 998-0962 for both domestic and international calls.

SELECTED FINANCIAL DATA

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

(Unaudited)

   

Third Quarter Ended

Nine Months Ended

   

September 30,

September 30,

   

2010

 

2009

 

2010

 

2009

Revenues:

               

    Services

$

108,076

$

90,292

$

304,973

$

256,399

    Products

 

53,068

 

40,572

 

153,138

 

109,238

        Total revenues

161,144

130,864

458,111

365,637

                 

Cost of Sales:

               

    Cost of services

 

88,210

 

72,559

 

249,218

 

207,233

    Cost of products

 

36,932

 

27,450

 

103,251

 

81,233

        Total cost of sales

 

125,142

 

100,009

 

352,469

 

288,466

        Gross profit

 

36,002

 

30,855

 

105,642

 

77,171

                 

Operating Expenses:

               

    Administrative

 

7,922

 

7,948

 

26,778

 

18,029

    Salary and payroll taxes

 

13,184

 

10,497

 

39,747

 

28,832

        Total operating expenses

 

21,106

 

18,445

 

66,525

 

46,861

        Income from operations

 

14,896

 

12,410

 

39,117

 

30,310

                 

Other Income (Expense):

               

    Interest expense

 

(959

)

(33

)

(2,650

)

(101)

    Other income

 

28

 

28

 

135

 

185

        Total other income (expense)

 

(931

)

(5

)

(2,515

)

84

                 

Income before provision for income taxes

 

13,965

 

12,405

 

36,602

 

30,394

                 

Provision for income taxes

 

2,214

 

1,594

 

5,234

 

3,311

                 
                 

Net income

$

11,751

$

10,811

$

31,368

$

27,083

Income per share:

    Basic

$

0.79

$

0.74

$

2.12

$

1.86

    Diluted (1)

$

0.78

$

0.73

$

2.08

$

1.82

Weighted average shares outstanding:

    Basic

14,860

14,585

14,817

14,556

    Diluted

15,093

14,837

15,082

14,719

 

 

Notes:

  1. Considers the impact of stock options outstanding of a subsidiary's common stock of $34,000 and $244,000 for the three and nine months ended September 30, 2009, respectively. In July 2009, the Company entered into a transaction with the shareholders of these stock options in which they were exchanged for restricted share units of the Company.

STATISTICS

   

Third Quarter Ended

 

Nine Months Ended

September 30,

September 30,

   

2010

 

2009

 

2010

 

2009

                 

Average number of ships served1:

 

131

 

126

 

127

 

125

Spa

 

106

 

101

 

104

 

98

Non-Spa

 

25

 

25

 

23

 

27

                 

Average total number of staff on ships served:

 


2,309

 


2,092

 


2,206

 


2,077

Spa

 

2,099

 

1,898

 

2,015

 

1,877

Non-Spa

 

210

 

194

 

191

 

200

                 

Revenue per staff per day2:

$

442

$

440

$

427

$

412

Spa

$

455

$

454

$

440

$

428

Non-Spa

$

314

$

311

$

293

$

268

                 

Average weekly revenues:

$

54,357

$

51,302

$

51,913

$

48,088

Spa

$

62,699

$

59,949

$

59,735

$

57,219

Non-Spa

$

18,563

$

16,788

$

16,896

$

14,228

                 

Average number of land-based spas served 3

 

69

 

50

 

68

 

50

                 

Average weekly land-based spas revenues

$

26,274

$

19,473

$

27,714

$

21,670

                 

Total schools revenues

$

16,659,000

$

16,067,000

$

49,742,000

$

44,988,000

                 

Total wholesale and retail product revenues

$

26,808,000

$

17,123,000

$

78,291,000

$

44,483,000

_____________

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 reflects the fact that during the period spas were opened or closed and, accordingly, the number of spas served during the period varied.