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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 First Quarter 2013 Financial Results

NASSAU, THE BAHAMAS, April 24, 2013 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the first quarter ended March 31, 2013.

Steiner Leisure's revenues for the first quarter ended March 31, 2013 increased 6.8% to $212.0 million from $198.5 million during the comparable quarter in 2012. Net income for the first quarter of 2013 was $12.7 million compared with $14.6 million for the same quarter in 2012.

Earnings per share for the first quarter ended March 31, 2013 was $0.86 per share, compared with $0.95 per share for the comparable quarter in 2012. The 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./P>

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 156 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 66 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, 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 101 treatment centers (17 of which are operated by franchisees) across 29 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 31 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 and Houston, 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, April 25, 2013. 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, April 25 (approximately 3 hours after the call takes place) through Thursday, May 2, 2013 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-1127 for both domestic and international calls. The passcode is "33146".


SELECTED FINANCIAL DATA

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

(Unaudited)

   

First Quarter Ended

   

March 31,

   

2013

 

2012

 

Revenues:

    Services

$

151,312

$

141,442

 

    Products

 

60,702

 

57,091

 

        Total revenues

212,014

198,533

           

Cost of Sales:

         

    Cost of services

 

121,114

 

112,278

 

    Cost of products

 

40,677

 

40,613

 

        Total cost of sales

 

161,791

 

152,891

 

        Gross profit

 

50,223

 

45,642

 
           

Operating Expenses:

         

    Administrative

 

14,812

 

10,779

 

    Salary and payroll taxes

 

19,637

 

17,135

 

        Total operating expenses

 

34,449

 

27,914

 

        Income from operations

 

15,774

 

17,728

 
           

Other Income (Expense):

         

    Interest expense

 

(1,419

)

(1,587

)

    Other income

 

144

 

246

 

        Total other income (expense)

 

(1,275

)

(1,341

)

           

Income before provision for income taxes

 

14,499

 

16,387

 
           

Provision for income taxes

 

1,759

 

1,817

 
           

Net income

$

12,740

$

14,570

Income per share:

    Basic

$

0.87

$

0.96

    Diluted

$

0.86

$

0.95

Weighted average shares outstanding:

    Basic

14,647

15,189

    Diluted

14,758

15,378

 

 

 


STATISTICS

 

First Quarter Ended

March 31

   

2013

 

2012

         

Average number of ships served1:

 

153

 

148

 

Spa

 

113

 

110

 

Non-Spa

 

40

 

38

 
           

Average total number of staff on ships served:

 

2,688

 

2,646

 

Spa

 

2,318

 

2,286

 

Non-Spa

 

370

 

360

 
           

Revenue per staff per day2:

$

431

$

418

 

Spa

$

455

$

440

 

Non-Spa

$

277

$

277

 
           

Average weekly revenues:

$

52,852

$

52,267

 

Spa

$

65,388

$

64,265

 

Non-Spa

$

17,786

$

18,144

 
           

Average number of land-based spas operated3

 

67

 

68

 
           

Average weekly land-based spas revenues

$

30,373

$

30,801

 
           

Total schools revenues

$

19,860,000

$

21,130,000

 
           

Total wholesale and retail product revenues

$

30,009,000

$

29,311,000

 
           

Average number of Ideal Image locations3, 4

 

80

 

60

 
           

Average weekly Ideal Image revenues4

$

30,782

$

25,606

 
           

Ideal Image revenues

$

31,692,000

$

19,973,000

 
           

Ideal Image cash revenues5

$

38,959,000

$

29,453,000

 

 

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.

5 This represents revenues on a cash basis for the entire periods.