EXHIBIT 99
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 Record
Second Quarter 2004 Financial Results
NASSAU, THE BAHAMAS, July 28, 2004 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the second quarter ended June 30, 2004.
Steiner Leisure's revenues for the second quarter ended June 30, 2004 rose 26.1% to $83.0 million from $65.8 million during the comparable quarter in 2003. Income from continuing operations, before discontinued operations for the second quarter, was $8.4 million compared with $5.3 million for the same quarter in 2003.
Earnings per share before discontinued operations for the second quarter ended June 30, 2004 was $0.49 per share, compared with $0.32 per share for the comparable quarter in 2003. The earnings per share data are presented on a diluted basis.
Revenues for the six months ended June 30, 2004 rose 25.1% to $163.9 million from $131.0 million during the comparable six months in 2003. Income from continuing operations, before discontinued operations for the six months ended June 30, 2004 was $16.6 million compared with $10.5 million for the same six months in 2003.
Earnings per share before discontinued operations for the six months ended June 30, 2004 was $0.97 per share compared with $0.64 per share for the comparable six months in 2003. The above earnings per share data are presented on a diluted basis.
Leonard I. Fluxman, President and Chief Executive Officer of Steiner Leisure, commented "We are very pleased with our second consecutive quarter of record financial results. The results of the maritime business generally start slowly this quarter due to repositioning of certain ships to Alaska and the Mediterranean. This year we saw strength in the maritime business throughout the quarter. These results reflect solid execution in a leisure industry that continues to improve."
Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 113 cruise ships, and in 66 resort spas and two luxury day spas. Our cruise line and land-based resort customers include Carnival Cruise Line, Caesars Entertainment, Celebrity Cruises, Crystal Cruises, Cunard/Seabourn Cruise Lines, Hilton Hotels, Holland America Line, Kerzner International, Marriott Hotels, Norwegian Cruise Lines, Princess Cruises and Royal Caribbean Cruises. 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 is also distributed worldwide to exclusive hotels, salons, health clubs and destination spas. Elemis®, as well as other Steiner private label products, including La Therapie®, Ionithermie, and Steiner Hair Care, are available at www.timetospa.com.
Steiner Leisure also owns and operates three post secondary schools (comprised of a total of seven campuses) located in Miami, Fort Lauderdale, Orlando and Sarasota, Florida; Baltimore, Maryland; York, Pennsylvania and Charlottesville, Virginia. Offering degree and non-degree programs in massage therapy and 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, July 29, 2004. 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 (706) 679-5917 for domestic and international calls approximately ten minutes before the scheduled time. This call is available for replay from Thursday. July 29, 2004 (approximately 3 hours after the call takes place) until Thursday, August 5, 2004 at 5:00 pm. You may reach it by dialing (706) 645-9291 for both domestic and international calls. The conference ID # is 8787907.
SELECTED FINANCIAL DATA
($ in thousands, except per share data)
(Unaudited)
| | | Second Quarter Ended | Six Months Ended |
| | | June 30, | June 30, |
| | | 2004 | | 2003 | | 2004 | | 2003 |
Revenues: | | | | | | | | |
Services | $ | 56,805 | $ | 45,897 | $ | 112,772 | $ | 91,772 |
Products | | 26,223 | | 19,935 | | 51,161 | | 39,225 |
Total revenues | | 83,028 | | 65,832 | | 163,933 | | 130,997 |
| | | | | | | | | |
Cost of Sales: | | | | | | | | |
Cost of services | | 44,796 | | 37,350 | | 89,045 | | 74,082 |
Cost of products | | 19,367 | | 14,950 | | 37,629 | | 29,418 |
Total cost of sales | | 64,163 | | 52,300 | | 126,674 | | 103,500 |
Gross profit | | 18,865 | | 13,532 | | 37,259 | | 27,497 |
| | | | | | | | | |
Operating Expenses: | | | | | | | | |
Administrative | | 4,384 | | 3,337 | | 8,688 | | 6,705 |
Salary and payroll taxes | | 4,856 | | 4,197 | | 9,683 | | 8,417 |
Total operating expenses | | 9,240 | | 7,534 | | 18,371 | | 15,122 |
Income from continuing operations | | 9,625 | | 5,998 | | 18,888 | | 12,375 |
| | | | | | | | | |
Other Income (Expense): | | | | | | | | |
Interest expense | | (600 | ) | (852 | ) | (1,254 | ) | (1,819) |
Equity and minority interest | | 75 | | 42 | | 191 | | 146 |
Other income | | 25 | | 412 | | 41 | | 425 |
Total other income (expense) | | (500 | ) | (398 | ) | (1,022 | ) | (1,248) |
| | | | | | | | | |
Income from continuing operations before provision for income taxes and discontinued operations | |
9,125
| |
5,600
| |
17,866
| |
11,127
|
| | | | | | | | | |
Provision for income taxes | | 671 | | 309 | | 1,284 | | 642 |
| | | | | | | | | |
Income from continuing operations before discontinued operations | |
8,454
| |
5,291
| |
16,582
| |
10,485
|
| | | | | | | | | |
Loss from discontinued operations (which includes loss on disposal of $ 2 and $ 7 and $715 and $1,548 for the three and six months ended June 30, 2004 and 2003, respectively), net of taxes | |
(25
|
)
|
(1,303
|
)
|
(97
|
)
|
(3,134)
|
| | | | | | | | | |
| | | | | | | | | |
Net income | $ | 8,429 | $ | 3,988 | $ | 16,485 | $ | 7,351 |
| | | | | | | | |
Income (loss) per share-Basic: | | | | | | | | |
Income before discontinued operations | $ | 0.51 | $ | 0.32 | $ | 1.00 | $ | 0.64 |
Loss from discontinued operations | | - | | (0.08 | ) | - | | (0.19) |
| $ | 0.51 | $ | 0.24 | $ | 1.00 | $ | (0.45) |
| | | | | | | | |
Income (loss) per share-Diluted: | | | | | | | | |
Income before discontinued operations | $ | 0.49 | $ | 0.32 | $ | 0.97 | $ | 0.64 |
Loss from discontinued operations | | - | | (0.08 | ) | (0.01 | ) | (0.19) |
| $ | 0.49 | $ | 0.24 | $ | 0.96 | $ | (0.45) |
| | | | | | | | |
Weighted average shares outstanding: | | | | | | | | |
Basic | | 16,668 | | 16,393 | | 16,574 | | 16,389 |
Diluted | | 17,360 | | 16,503 | | 17,154 | | 16,484 |
STATISTICS
| | | Second Quarter Ended | | Six Months Ended |
| | June 30, | | June 30, |
| | | 2004 | | 2003 | | 2004 | | 2003 |
| | | | | | | | | |
Average number of ships served1: | | 109 | | 100 | | 108 | | 101 |
Spa | | 75 | | 65 | | 74 | | 65 |
Non-Spa | | 34 | | 35 | | 34 | | 36 |
| | | | | | | | | |
Average total number of staff on ships served: | |
1,454
| |
1,282
| |
1,438
| |
1,283
|
Spa | | 1,228 | | 1,049 | | 1,212 | | 1,049 |
Non-Spa | | 226 | | 233 | | 226 | | 234 |
| | | | | | | | | |
Revenue per staff per day2: | $ | 420 | $ | 379 | $ | 414 | $ | 380 |
Spa | $ | 441 | $ | 405 | $ | 436 | $ | 409 |
Non-Spa | $ | 306 | $ | 265 | $ | 296 | $ | 254 |
| | | | | | | | | |
Average weekly revenues: | $ | 39,183 | $ | 34,058 | $ | 38,728 | $ | 33,800 |
Spa | $ | 50,558 | $ | 45,803 | $ | 50,065 | $ | 45,872 |
Non-Spa | $ | 14,202 | $ | 12,320 | $ | 13,871 | $ | 11,667 |
| | | | | | | | | |
Average number of land-based spas operated3,4,5 | |
52
| |
48
| |
52
| |
48
|
| | | | | | | | | |
Average weekly land-based spas revenues5 | $ | 24,411 | $ | 20,093 | $ | 24,591 | $ | 20,488 |
| | | | | | | | | |
Total schools revenues6 | $ | 4,328,000 | $ | 4,165,000 | $ | 8,874,000 | $ | 8,335,000 |
| | | | | | | | | |
Total wholesale and retail product revenues | $ | 6,568,000 | $ | 4,888,000 | $ | 13,356,000 | $ | 8,884,000 |
_____________
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 Excludes the effect of fourteen land-based resort spas that we operate through joint ventures in which we own a 49% interest.
4 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.
5 Includes resort spas and two spas formally referred to as "day spas" in prior statistical presentations.
6 Includes $211,000 and $150,000 for the three months ended June 30, 2004 and 2003, respectively, and $400,000 and $315,000 for the six months ended June 30, 2004 and 2003, respectively, relating to the Steiner training school near London, England.
