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 2012 Financial Results and New Share Repurchase Plan
NASSAU, THE BAHAMAS, February 27, 2013 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2012.
Steiner Leisure's revenues for the fourth quarter ended December 31, 2012 increased 13.6% to $211.1 million from $185.9 million during the comparable quarter in 2011. Net income for the fourth quarter of 2012 was $11.8 million compared with $12.3 million for the same quarter in 2011.
Earnings per share for the fourth quarter ended December 31, 2012 and 2011 was $0.81 per share. The earnings per share data are presented on a diluted basis.
Revenues for the year ended December 31, 2012 increased 15.7% to $811.5 million from $701.6 million in 2011. Net income for the year ended December 31, 2012 was $53.1 million compared with $50.9 million in 2011.
Earnings per share for the year ended December 31, 2012 was $3.53 per share, compared with $3.35 per share in 2011. The above earnings per share data are presented on a diluted basis.
New Share Repurchase Plan
Steiner Leisure also today announced the approval by its Board of Directors of a new share repurchase plan under which up to $100,000,000 of Steiner Leisure common shares can be purchased. In connection with this new repurchase authorization, the repurchase plan approved by the Board in February 2008 was terminated. A total of approximately $7.2 million remained available for share repurchases under that plan at the time it was terminated.
Under the new share repurchase plan, Steiner Leisure may purchase shares from time to time, at prevailing prices in open market, and possibly other, transactions, subject to market conditions and compliance with certain financial parameters. The amounts to be repurchased shall not exceed the limitations on share repurchases set forth in the Company's credit facility. We cannot provide assurance as to the exact number of shares that will be repurchased under the plan.
About Steiner Leisure
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.
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 69 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, InterContinental Hotels and Resorts, 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 97 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.
Conference Call
The Company will be holding a conference call at 11:00 am (EST) on Thursday, February 28, 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, February 28th (approximately 3 hours after the call takes place) through Thursday, March 7, 2013 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-3299 for both domestic and international calls. The password is "33146".
SELECTED FINANCIAL DATA
($ and shares in thousands, except per share data)
(Unaudited)
| | | Fourth Quarter Ended | Year Ended |
| | | December 31, | December 31, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
Revenues: | | | | | | | | |
Services | $ | 143,660 | $ | 125,757 | $ | 570,569 | $ | 470,756 |
Products | | 67,419 | | 60,128 | | 240,912 | | 230,876 |
Total revenues | | 211,079 | | 185,885 | | 811,481 | | 701,632 |
| | | | | | | | | |
Cost of Sales: | | | | | | | | |
Cost of services | | 118,271 | | 101,411 | | 463,634 | | 382,341 |
Cost of products | | 45,490 | | 41,878 | | 167,971 | | 160,754 |
Total cost of sales | | 163,761 | | 143,289 | | 631,605 | | 543,095 |
Gross profit | | 47,318 | | 42,596 | | 179,876 | | 158,537 |
| | | | | | | | | |
Operating Expenses: | | | | | | | | |
Administrative | | 13,176 | | 13,176 | | 48,485 | | 41,776 |
Salary and payroll taxes | | 18,898 | | 14,443 | | 65,619 | | 57,048 |
Total operating expenses | | 32,074 | | 27,619 | | 114,104 | | 98,824 |
Income from operations | | 15,244 | | 14,977 | | 65,772 | | 59,713 |
| | | | | | | | | |
Other Income (Expense): | | | | | | | | |
Interest expense | | (1,534 | ) | (1,138 | ) | (6,152 | ) | (2,716) |
Other income | | 347 | | 405 | | 823 | | 682 |
Total other income (expense) | | (1,187 | ) | (733 | ) | (5,329 | ) | (2,034) |
| | | | | | | | | |
Income before provision for income taxes | | 14,057 | | 14,244 | | 60,443 | | 57,679 |
| | | | | | | | | |
Provision for income taxes | | 2,222 | | 1,934 | | 7,341 | | 6,744 |
| | | | | | | | | |
Net income | $ | 11,835 | $ | 12,310 | $ | 53,102 | $ | 50,935 |
| | | | | | | | |
Income per share: | | | | | | | | |
Basic | $ | 0.81 | $ | 0.82 | $ | 3.57 | $ | 3.39 |
Diluted | $ | 0.81 | $ | 0.81 | $ | 3.53 | $ | 3.35 |
| | | | | | | | |
Weighted average shares outstanding: | | | | | | | | |
Basic | | 14,571 | | 15,103 | | 14,878 | | 15,013 |
Diluted | | 14,662 | | 15,237 | | 15,052 | | 15,217 |
STATISTICS
| | | Fourth Quarter Ended | | Year Ended |
| | December 31, | | December 31, |
| | | 2012 | | 2011 | | 2012 | | 2011 |
| | | | | | | | | |
Average number of ships served1: | | 152 | | 149 | | 152 | | 150 |
Spa | | 113 | | 115 | | 112 | | 114 |
Non-Spa | | 39 | | 34 | | 40 | | 36 |
| | | | | | | | | |
Average total number of staff on ships served: | |
2,656
| |
2,665
| |
2,654
| |
2,608
|
Spa | | 2,302 | | 2,386 | | 2,281 | | 2,324 |
Non-Spa | | 354 | | 279 | | 373 | | 284 |
| | | | | | | | | |
Revenue per staff per day2: | $ | 406 | $ | 392 | $ | 417 | $ | 416 |
Spa | $ | 426 | $ | 406 | $ | 438 | $ | 431 |
Non-Spa | $ | 277 | $ | 276 | $ | 284 | $ | 294 |
| | | | | | | | | |
Average weekly revenues: | $ | 49,886 | $ | 49,194 | $ | 50,821 | $ | 50,562 |
Spa | $ | 60,789 | $ | 59,106 | $ | 62,471 | $ | 61,287 |
Non-Spa | $ | 17,886 | $ | 15,800 | $ | 18,384 | $ | 16,350 |
| | | | | | | | | |
Average number of land-based spas operated3 | |
68
| |
68
| |
69
| |
68
|
| | | | | | | | | |
Average weekly land-based spas revenues | $ | 28,821 | $ | 28,565 | $ | 29,175 | $ | 29,395 |
| | | | | | | | | |
Total schools revenues | $ | 18,751,000 | $ | 17,976,000 | $ | 78,365,000 | $ | 67,526,000 |
| | | | | | | | | |
Total wholesale and retail product revenues | $ | 40,067,000 | $ | 34,034,000 | $ | 129,890,000 | $ | 122,285,000 |
| | | | | | | | | |
Average number of Ideal Image locations3, 4 | | 78 | | 58 | | 68 | | 58 |
| | | | | | | | | |
Average weekly Ideal Image revenues4 | $ | 26,577 | $ | 23,335 | $ | 26,145 | $ | 23,335 |
| | | | | | | | | |
Ideal Image revenues | $ | 27,194,000 | $ | 12,104,000 | $ | 93,591,000 | $ | 12,104,000 |
| | | | | | | | | |
Ideal Image cash revenues5 | $ | 36,637,000 | $ | 23,736,000 | $ | 128,587,000 | $ | 84,392,000 |
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.
4Excludes 17 centers which are operated by franchisees.
5This represents revenues on a cash basis for the entire period. We did not own Ideal Image until November 2011.
