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 Record Fourth Quarter and 2004 Financial Results and Continuation of Share Repurchase Plan
NASSAU, THE BAHAMAS, February 23, 2005 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2004 and continuation of its share repurchase plan.
Financial Results
Steiner Leisure's revenues for the fourth quarter ended December 31, 2004 rose 17.2% to $87.5 million from $74.6 million during the comparable quarter in 2003. Income from continuing operations, before discontinued operations for the fourth quarter, was $10.0 million compared with $6.5 million for the same quarter in 2003.
During the fourth quarter of 2004, the Company sold its 49% ownership interest in each of two entities that operate resort spas in Thailand and China, respectively, to the 51% owner thereof. The Company recorded a gain of approximately $1.5 million as a result of this transaction, which is included in other income.
Earnings per share before discontinued operations for the fourth quarter ended December 31, 2004 was $0.55 per share, compared with $0.39 per share for the comparable quarter in 2003. The earnings per share data are presented on a diluted basis.
Revenues for the year ended December 31, 2004, rose 21.7% to $341.5 million from $280.6 million in 2003. Income from continuing operations, before discontinued operations for the year ended December 31, 2004 was $35.9 million compared with $24.0 million in 2003.
Earnings per share before discontinued operations for year ended December 31, 2004 was $2.03 per share compared with $1.44 per share 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 fourth consecutive quarter of record financial results. The strong execution by our personnel allowed us to generate strong earnings growth and cash flow in 2004."
Share Repurchases
Steiner Leisure also today announced a continuation of its previously adopted share repurchase plan. Under that plan, from 1998 through 2000, the Company purchased a total of 1,902,150 shares out of the 3,187,250 approved by the Board of Directors for repurchase. Accordingly, under the share repurchase plan, Steiner Leisure may purchase up to 1,285,100 shares from time to time at prevailing prices in open market, and possibly other, transactions, subject to market conditions, share price and other considerations. We cannot provide assurance as to the exact number of shares that will be repurchased under this continuation of our repurchase plan.
Corporate Overview
Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 118 cruise ships, and in 50 resort spas and two luxury day spas. Our cruise line and land-based resort customers include Carnival Cruise Lines, 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 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.
Conference Call
The Company will be holding a conference call at 11:00 am (EST) on Thursday, February 24, 2005. 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. February 24, 2005 (approximately 3 hours after the call takes place) until Monday, February 28, 2005 at 11:00 pm. You may reach it by dialing (706) 645-9291 for both domestic and international calls. The conference ID # is 3552730.
SELECTED FINANCIAL DATA
($ in thousands, except per share data)
(Unaudited)
| | | Fourth Quarter Ended | Year Ended |
| | | December 31, | December 31, |
| | | 2004 | | 2003 | | 2004 | | 2003 |
Revenues: | | | | | | | | |
Services | $ | 58,912 | $ | 51,242 | $ | 233,350 | $ | 195,731 |
Products | | 28,546 | | 23,372 | | 108,141 | | 84,843 |
Total revenues | | 87,458 | | 74,614 | | 341,491 | | 280,574 |
| | | | | | | | | |
Cost of Sales: | | | | | | | | |
Cost of services | | 47,297 | | 41,238 | | 185,294 | | 157,476 |
Cost of products | | 21,548 | | 17,549 | | 80,512 | | 63,598 |
Total cost of sales | | 68,845 | | 58,787 | | 265,806 | | 221,074 |
Gross profit | | 18,613 | | 15,827 | | 75,685 | | 59,500 |
| | | | | | | | | |
Operating Expenses: | | | | | | | | |
Administrative | | 5,153 | | 4,026 | | 18,493 | | 14,508 |
Salary and payroll taxes | | 4,225 | | 4,173 | | 18,838 | | 16,789 |
Total operating expenses | | 9,378 | | 8,199 | | 37,331 | | 31,297 |
Income from continuing operations | | 9,235 | | 7,628 | | 38,354 | | 28,203 |
| | | | | | | | | |
Other Income (Expense): | | | | | | | | |
Interest expense | | (47 | ) | (741 | ) | (1,525 | ) | (3,392) |
Equity and minority interest | | -- | | 19 | | 292 | | 276 |
Other income | | 1,593 | | 17 | | 1,679 | | 510 |
Total other income (expense) | | 1,546 | | (705 | ) | 446 | | (2,606) |
| | | | | | | | | |
Income from continuing operations before provision for income taxes and discontinued operations | |
10,781
| |
6,923
| |
38,800
| |
25,597
|
| | | | | | | | | |
Provision for income taxes | | 753 | | 411 | | 2,912 | | 1,615 |
| | | | | | | | | |
Income from continuing operations before discontinued operations | |
10,028
| |
6,512
| |
35,888
| |
23,982
|
| | | | | | | | | |
Income (loss) from discontinued operations (which includes gain (loss) on disposal of $239 and $(32) and $145 and $(1,674) for the three months and year ended December 31, 2004 and 2003, respectively), net of taxes | |
210
|
|
(291
|
)
|
90
|
|
(3,560)
|
| | | | | | | | | |
| | | | | | | | | |
Net income | $ | 10,238 | $ | 6,221 | $ | 35,978 | $ | 20,422 |
| | | | | | | | |
Income (loss) per share-Basic: | | | | | | | | |
Income before discontinued operations | $ | 0.57 | $ | 0.40 | $ | 2.12 | $ | 1.46 |
Income (loss) from discontinued operations | | 0.02 | | (0.02 | ) | 0.01 | | (0.22) |
| $ | 0.59 | $ | 0.38 | $ | 2.13 | $ | 1.24 |
| | | | | | | | |
Income (loss) per share-Diluted: | | | | | | | | |
Income before discontinued operations | $ | 0.55 | $ | 0.39 | $ | 2.03 | $ | 1.44 |
Income (loss) from discontinued operations | | 0.01 | | (0.02 | ) | 0.01 | | (0.21) |
| $ | 0.56 | $ | 0.37 | $ | 2.04 | $ | 1.23 |
| | | | | | | | |
Weighted average shares outstanding: | | | | | | | | |
Basic | | 17,458 | | 16,464 | | 16,899 | | 16,415 |
Diluted | | 18,359 | | 16,837 | | 17,643 | | 16,668 |
STATISTICS
| | | Fourth Quarter Ended | | Year Ended |
| | December 31, | | December 31, |
| | | 2004 | | 2003 | | 2004 | | 2003 |
| | | | | | | | | |
Average number of ships served1: | | 110 | | 103 | | 109 | | 103 |
Spa | | 77 | | 68 | | 75 | | 67 |
Non-Spa | | 33 | | 35 | | 34 | | 36 |
| | | | | | | | | |
Average total number of staff on ships served: | |
1,493
| |
1,386
| |
1,471
| |
1,333
|
Spa | | 1,266 | | 1,128 | | 1,242 | | 1,088 |
Non-Spa | | 227 | | 258 | | 229 | | 245 |
| | | | | | | | | |
Revenue per staff per day2: | $ | 428 | $ | 393 | $ | 427 | $ | 392 |
Spa | $ | 451 | $ | 420 | $ | 449 | $ | 418 |
Non-Spa | $ | 300 | $ | 273 | $ | 306 | $ | 272 |
| | | | | | | | | |
Average weekly revenues: | $ | 40,826 | $ | 36,999 | $ | 40,183 | $ | 35,604 |
Spa | $ | 52,227 | $ | 48,735 | $ | 51,791 | $ | 47,585 |
Non-Spa | $ | 14,411 | $ | 14,130 | $ | 14,420 | $ | 13,088 |
| | | | | | | | | |
Average number of land-based spas operated3,4 | |
51
| |
48
| |
52
| |
48
|
| | | | | | | | | |
Average weekly land-based spas revenues4 | $ | 24,129 | $ | 22,714 | $ | 24,303 | $ | 21,528 |
| | | | | | | | | |
Total schools revenues5 | $ | 3,613,000 | $ | 4,106,000 | $ | 16,866,000 | $ | 16,561,000 |
| | | | | | | | | |
Total wholesale and retail product revenues | $ | 8,728,000 | $ | 6,153,000 | $ | 29,019,000 | $ | 19,776,000 |
_____________
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 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.
4Includes resort spas and two spas referred to as "day spas" in prior statistical presentations.
5Includes $156,000 and $139,000 for the three months ended December 31, 2004 and 2003, respectively, and $747,000 and $669,000 for the year ended December 31, 2004 and 2003, respectively, relating to the Steiner training school near London, England.
