Steiner Leisure 8K/A Consolidated Statements of Operations | STNR 13 Jan 12

Exhibit 99.3

Steiner Leisure Limited and Subsidiaries

Unaudited Pro Forma

Condensed Consolidated Financial Statements

On November 1, 2011, Steiner Leisure Limited ("Steiner Leisure") acquired all of the stock of Ideal Image Development, Inc. ("Ideal Image") for $175.0 million in cash less cash acquired. Ideal Image is a leader in the important and growing consumer healthcare category of laser hair removal.

The following Unaudited Pro Forma Condensed Consolidated Financial Statements of Steiner Leisure reflect adjustments to the historical consolidated financial statements of Steiner Leisure to give effect to the Ideal Image acquisition for the Unaudited Pro Forma Condensed Consolidated Financial Statements as of September 30, 2011 for the Unaudited Pro Forma Condensed Consolidated Balance Sheet and as if the transaction occurred on January 1, 2010 for the Unaudited Pro Forma Condensed Consolidated Statements of Income for the year ended December 31, 2010 and the nine months ended September 30, 2011.

The assumptions used and pro forma adjustments derived from such assumptions are based on currently available information and Steiner Leisure believes such assumptions are reasonable under the circumstances.

The following Unaudited Pro Forma Condensed Consolidated Financial Statements should be read in conjunction with the historical consolidated financial statements of Steiner Leisure and "Management's Discussion and Analysis of Financial Condition and Results of Operations" of Steiner Leisure included in the December 31, 2010 10-K of Steiner Leisure.

These Unaudited Pro Forma Condensed Consolidated Financial Statements are not necessarily indicative of Steiner Leisure's results of operations or financial condition had the acquisition been completed on the dates assumed. In addition, they are not necessarily indicative of Steiner Leisure's future results of operations or financial condition.

Steiner Leisure Limited
Pro Forma Condensed Consolidated Balance Sheet
As of September 30, 2011
(Unaudited)
(in thousands)

		Steiner Leisure Limited		Ideal Image Development, Inc.		Pro forma Adjustments			Consolidated
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	69,718	$	13,574	$	(9,074	)b	$	74,218
Accounts receivable, net		32,848		5,320		--			38,168
Accounts receivable-students, net		18,361		--		--			18,361
Inventories		60,042		--		--			60,042
Prepaid expenses and other current assets		14,023		731		--			14,754
Total current assets		194,992		19,625		(9,074	)		205,543
PROPERTY AND EQUIPMENT, net		77,109		6,143		--			83,252
GOODWILL		117,057		21,787		100,588	c		239,432
OTHER ASSETS:
Intangible assets, net		28,773		540		85,460	c		114,773
Deferred financing costs, net		636		--		5,000	b		5,636
Deferred customer acquisition costs, net		--		8,608		(8,608	)d		--
Other		7,780		41		--			7,821
Total other assets		37,189		9,189		81,852			128,230
Total assets	$	426,347	$	56,744	$	173,366		$	656,457

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	17,263	$	1,662	$	--		$	18,885
Accrued expenses		36,061		2,921		--			38,982
Current portion of capital lease obligation		--		1,261		(1,261	)a		--
Current portion of long-term debt		--		6,874		(6,874	)a		16,500
						16,500	b
Current portion of deferred rent		1,064		--		--			1,064
Current portion of deferred tuition revenue		23,202		--		--			23,202
Deferred revenue		--		43,862		(4,825	)d		39,037
Gift certificate liability		13,156		--		--			13,156
Income taxes payable		2,070		117		--			2,187
Total current liabilities		92,816		56,657		3,540			153,013
DEFERRED INCOME TAX LIABILITY		14,058		749		--			14,807
LONG-TERM CAPITAL LEASE OBLIGATION		--		516		(516	)a		--
LONG-TERM DEFERRED RENT		10,770		--		--			10,770
LONG-TERM DEFERRED TUITION REVENUE		1,198		--		--			1,198
LONG-TERM DEFERRED REVENUE		--		17,425		(1,917	)d		15,508
LONG-TERM DEBT		--		2,994		(2,994	)a		148,500
						148,500	b
COMMITMENTS & CONTINGENCIES

(continued)

Steiner Leisure Limited
Pro Forma Condensed Consolidated Balance Sheet
As of September 30, 2011
(Unaudited)
(in thousands)

(CONTINUED)

		Steiner Leisure Limited			Ideal Image Development, Inc.			Pro forma Adjustments			Consolidated

SHAREHOLDERS' EQUITY:
Preferred shares, $.01 par value; 10,000 shares authorized, none issued and outstanding	$	--		$	72		$	(72	)a	$	--
Common shares, $.01 par value; 100,000 shares authorized, 23,738 shares issued in 2011		237			17			(17	)a		238
								1	b
Additional paid-in capital		161,126			10,616			(10,616	)a		166,282
								5,156	b
Accumulated other comprehensive loss		(3,464	)		--			--			(3,464	)
Retained earnings		417,144			(30,836	)		30,836	a		417,144
Treasury shares		(267,538	)		(1,466	)		1,466	a		(267,538	)
Total shareholders' equity		307,505			(21,597	)		26,754			312,662
Total liabilities and shareholders' equity	$	426,347		$	56,744		$	173,367		$	656,458

Steiner Leisure Limited
Pro Forma Condensed Consolidated Statement of Income
For the nine months ended September 30, 2011
(Unaudited)
(in thousands, except per share data)

		Steiner Leisure Limited			Ideal Image Development, Inc.			Pro forma Adjustments			Consolidated

REVENUES:
Services	$	344,999		$	52,308		$	(2,877	)g	$	394,430
Products		170,748			--			--			170,748
Total revenues		515,747			52,308			(2,877	)		565,178

COST OF REVENUES:
Cost of services		280,930			34,456			--			315,386
Cost of products		118,876			--			--			118,876
Total cost of revenues		399,806			34,456			--			434,262
Gross profit		115,941			17,852			(2,877	)		130,916

OPERATING EXPENSES:
Administrative		28,600			3,141			(695	)h		31,046
Salary and payroll taxes		42,605			6,976			--			49,581
Total operating expenses		71,205			10,117			(695	)		80,627
Income from operations		44,736			7,735			(2,182	)		50,289

OTHER INCOME (EXPENSES), NET:
Interest expense		(1,578	)		(802	)		(2,857	)f		(5,237	)
Other income (expense)		277			30			--			307
Total other income (expense), net		(1,301	)		(772	)		(2,857	)		(4,930	)
Income before provision for income taxes		43,435			6,963			(5,039	)		45,359

PROVISION FOR INCOME TAXES:		4,810			655			578	e		6,043

Net income (loss)	$	38,625		$	6,308		$	(5,616	)	$	39,317

Income per share:
Basic	$	2.58								$	2.60
Diluted	$	2.54								$	2.56

Weighted average shares outstanding:
Basic		14,983						125	b		15,108
Diluted		15,209						125	b		15,334

Steiner Leisure Limited
Pro Forma Condensed Consolidated Statement of Income
For the year ended December 31, 2010

(Unaudited)
(in thousands, except per share data)

		Steiner Leisure Limited			Ideal Image Development, Inc.			Pro forma Adjustments			Consolidated

REVENUES:
Services	$	410,857		$	49,573		$	(2,727	)g	$	457,703
Products		209,528			--			--			209,528
Total revenues		620,385			49,573			(2,727	)		667,231

COST OF REVENUES:
Cost of services		335,118			44,854			--			379,972
Cost of products		140,956			--			--			140,956
Total cost of revenues		476,074			44,854			--			520,928
Gross profit		144,311			4,719			(2,727	)		146,303

OPERATING EXPENSES:
Administrative		36,133			2,248			--			38,381
Salary and payroll taxes		53,325			3,596			--			56,921
Total operating expenses		89,458			5,844			--			95,302
Income from operations		54,853			(1,125	)		(2,727	)		51,001

OTHER INCOME (EXPENSES), NET:
Interest expense		(3,388	)		(1,577	)		(3,249	) f		(8,214	)
Other income (expense)		151			(300	)		--			(149	)
Total other income (expense), net		(3,237	)		(1,877	)		(3,249	)		(8,363	)
Income before provision for income taxes		51,616			(3,002	)		(5,976	)		42,638

PROVISION FOR INCOME TAXES:		7,293			574			770	e		8,637

Net income (loss)	$	44,323		$	(3,576	)	$	(6,746	)	$	34,001

Income per share:
Basic	$	2.99								$	2.27
Diluted	$	2.94								$	2.24

Weighted average shares outstanding:
Basic		14,832						125	b		14,957
Diluted		15,069						125	b		15,194

Notes:

Reflects the elimination of Ideal Image's debt, capital lease obligations, equity and retained earnings.
Cash and debt financing incurred and equity issued connection with the acquisition of Ideal Image.
Reflects the elimination of Ideal Image's recorded goodwill and intangible asset and the addition of goodwill and intangibles initially identified in connection with the acquisition of Ideal Image by Steiner Leisure. This allocation is preliminary and subject to change. Additional information is necessary to complete the purchase price allocation.
Reflects fair value adjustments. This amount is preliminary and subject to change. Additional information is necessary to complete the purchase price allocation.
Reflects tax adjustments recorded in connection with the acquisition of Ideal Image. This amount is preliminary and subject to change. Additional information is necessary to complete the purchase price allocation.
The pro forma interest expense assumes borrowing funds at 2.5% (plus LIBOR) annual interest rate for the purchase price of $175 million. The annual interest rate is based on Steiner's credit facility rate as of December 31, 2010. The interest expense assumes the closing of the transaction and funds were borrowed on January 1, 2010.
The pro forma effect of fair value adjustment of assumed performance obligation assumes the transaction closed January 1, 2010. The following table reflects the purchase price allocation which is preliminary and subject to change.

Intangible Assets		Purchase Price Allocation	Estimated Useful Life

Trade names	$	86,000	Indefinite

Transaction costs that will no longer be incurred.

Steiner Leisure (STNR) 8-K/AConsolidated Statements of Operations