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
Fourth Quarter 2009 Financial Results
NASSAU, THE BAHAMAS, February 24, 2010 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2009.
Steiner Leisure's revenues for the fourth quarter ended December 31, 2009 increased 1.0% to $124.9 million from $123.7 million during the comparable quarter in 2008. Net income for the fourth quarter of 2009 was $10.9 million compared with $11.8 million for the same quarter in 2008. In the fourth quarter of 2009, we began recognizing breakage related to gift certificates using the redemption recognition method. As a result, during the fourth quarter of 2009, we recorded an increase to revenues and net income of approximately $1.3 million.
Earnings per share for the fourth quarter ended December 31, 2009 was $0.73 per share, compared with $0.79 per share for the comparable quarter in 2008. The earnings per share data are presented on a diluted basis.
Revenues for the year ended December 31, 2009 decreased 9.3% to $490.6 million from $540.8 million in 2008. Net income for the year ended December 31, 2009 was $38.0 million compared with $45.9 million in 2008.
Earnings per share for the year ended December 31, 2009 was $2.56 per share compared with $2.96 per share in 2008. 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 126 cruise ships and 67 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 26 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 and Resorts, W Hotels and Res orts and Westin Hotels and Resorts. 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, as well as our Bliss and Remède brands, 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 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, February 25, 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, February 25, 2010 (approximately 3 hours after the call takes place) through Thursday, March 4, 2010 at approximately 5:00 pm (EST). You may reach it by dialing (402) 220-3900 for both domestic and international calls.
SELECTED FINANCIAL DATA
($ and shares in thousands, except per share data)
(Unaudited)
| | | Fourth Quarter Ended | Year Ended |
| | | December 31, | December 31, |
| | | 2009 | | 2008 | | 2009 | | 2008 |
Revenues: | | | | | | | | |
Services | $ | 87,146 | $ | 83,976 | $ | 343,545 | $ | 360,819 |
Products | | 37,794 | | 39,721 | | 147,032 | | 179,950 |
Total revenues | | 124,940 | | 123,697 | | 490,577 | | 540,769 |
| | | | | | | | | |
Cost of Sales: | | | | | | | | |
Cost of services | | 70,138 | | 68,394 | | 277,371 | | 294,908 |
Cost of products | | 25,584 | | 21,806 | | 106,817 | | 119,005 |
Total cost of sales | | 95,722 | | 90,200 | | 384,188 | | 413,913 |
Gross profit | | 29,218 | | 33,497 | | 106,389 | | 126,856 |
| | | | | | | | | |
Operating Expenses: | | | | | | | | |
Administrative | | 7,003 | | 10,145 | | 25,032 | | 34,630 |
Salary and payroll taxes | | 9,386 | | 10,430 | | 38,218 | | 42,029 |
Total operating expenses | | 16,389 | | 20,575 | | 63,250 | | 76,659 |
Income from operations | | 12,829 | | 12,922 | | 43,139 | | 50,197 |
| | | | | | | | | |
Other Income (Expense): | | | | | | | | |
Interest expense | | (248 | ) | (22 | ) | (349 | ) | (269) |
Other income | | 31 | | 109 | | 216 | | 463 |
Total other income (expense) | | (217 | ) | 87 | | (133 | ) | 194 |
| | | | | | | | | |
Income before provision for income taxes | | 12,612 | | 13,009 | | 43,006 | | 50,391 |
| | | | | | | | | |
Provision for income taxes | | 1,703 | | 1,193 | | 5,014 | | 4,509 |
| | | | | | | | | |
Net income | $ | 10,909 | $ | 11,816 | $ | 37,992 | $ | 45,882 |
| | | | | | | | |
Income per share: | | | | | | | | |
Basic | $ | 0.75 | $ | 0.81 | $ | 2.61 | $ | 3.01 |
Diluted(1) | $ | 0.73 | $ | 0.79 | $ | 2.56 | $ | 2.96 |
| | | | | | | | |
Weighted average shares outstanding: | | | | | | | | |
Basic | | 14,640 | | 14,664 | | 14,577 | | 15,253 |
Diluted | | 14,923 | | 14,786 | | 14,764 | | 15,433 |
Notes:
- Reflects the impact of outstanding options with respect to a subsidiary's common stock of $126,000 for the three months ended December 31, 2008, and $244,000 and $190,000 for the years ended December 31, 2009 and 2008, respectively. In July 2009, the Company entered into a transaction with the holders of these stock options in which those stock options were exchanged for restricted share units of the Company.
STATISTICS
| | | Fourth Quarter Ended | | Year Ended |
| | December 31, | | December 31, |
| | | 2009 | | 2008 | | 2009 | | 2008 |
| | | | | | | | | |
Average number of ships served1: | | 122 | | 128 | | 124 | | 128 |
Spa | | 100 | | 97 | | 99 | | 96 |
Non-Spa | | 22 | | 31 | | 25 | | 32 |
| | | | | | | | | |
Average total number of staff on ships served: | |
2,089
| |
2,135
| |
2,080
| |
2,077
|
Spa | | 1,918 | | 1,913 | | 1,887 | | 1,844 |
Non-Spa | | 171 | | 222 | | 193 | | 233 |
| | | | | | | | | |
Revenue per staff per day2: | $ | 397 | $ | 396 | $ | 408 | $ | 454 |
Spa | $ | 407 | $ | 414 | $ | 423 | $ | 474 |
Non-Spa | $ | 278 | $ | 241 | $ | 269 | $ | 295 |
| | | | | | | | | |
Average weekly revenues: | $ | 47,412 | $ | 46,222 | $ | 47,920 | $ | 51,538 |
Spa | $ | 54,470 | $ | 56,923 | $ | 56,524 | $ | 63,528 |
Non-Spa | $ | 15,180 | $ | 12,262 | $ | 14,397 | $ | 15,115 |
| | | | | | | | | |
Average number of land-based spas operated3 | |
51
| |
50
| |
50
| |
52
|
| | | | | | | | | |
Average weekly land-based spas revenues | $ | 21,514 | $ | 22,203 | $ | 21,630 | $ | 26,243 |
| | | | | | | | | |
Total schools revenues | $ | 16,624,000 | $ | 14,072,000 | $ | 61,612,000 | $ | 50,575,000 |
| | | | | | | | | |
Total wholesale and retail product revenues | $ | 17,617,000 | $ | 17,226,000 | $ | 62,100,000 | $ | 74,340,000 |
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 operated reflects the fact that during the period spas were opened or closed and, accordingly, the number of spas served during the period varied.
