Steiner Leisure Limited Announces Second Quarter 2010 Financial Results

NASSAU, The Bahamas, July 28, 2010 (GLOBE NEWSWIRE) -- Steiner Leisure Limited (Nasdaq:STNR) today announced financial results for the second quarter ended June 30, 2010. The quarter and six months ended June 30, 2010 results and statistics below include the results of operations and locations of Bliss World Holdings, Inc. which was acquired on December 31, 2009.

Steiner Leisure's revenues for the second quarter ended June 30, 2010 increased 28.4% to $151.0 million from $117.6 million during the comparable quarter in 2009. Net income for the second quarter was $10.0 million compared with $8.3 million for the same quarter in 2009. In the second quarter of 2009, Cost of products was negatively impacted by a $4.1 million foreign exchange loss resulting from the weakening of the U.S. Dollar against the U.K. Pound Sterling relating to intercompany inventory purchases which was partially offset by a $1.9 million foreign exchange gain in Administrative expenses resulting from the weakening of the U.S. Dollar against the U.K. Pound Sterling and Euro currencies we were holding.

Earnings per share for the second quarter ended June 30, 2010 was $0.66 per share, compared with $0.56 per share for the comparable quarter in 2009. The earnings per share data are presented on a diluted basis.

Revenues for the six months ended June 30, 2010 increased 26.5% to $297.0 million from $234.8 million during the comparable six months in 2009. Net income for the six months ended June 30, 2010 was $19.6 million compared with $16.3 million for the same six months in 2009. These 2009 results also include the net foreign exchange loss discussed above.

Earnings per share for the six months ended June 30, 2010 was $1.30 per share compared with $1.10 per share for the comparable six months in 2009. 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 131 cruise ships and 69 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 27 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, W Hotels and Westin Hotels and Resorts. Our award-winning Elemis, Bliss and Remede brands are used and sold in our cruise ship and/or land-based spas and 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 (ET) on Thursday, July 29, 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". This call is available for replay from Thursday, July 29, 2010 (approximately 3 hours after the call takes place) until Thursday, August 5, 2010 at approximately 5:00 pm. You may reach it by dialing (203) 369-0218 for both domestic and international calls.  

SELECTED FINANCIAL DATA        
($ and shares in thousands, except per share data)  
(Unaudited)  
         
  Second Quarter Ended Six Months Ended
  June 30, June 30,
  2010 2009 2010 2009
Revenues:        
 Services $99,066 $82,769 $196,897 $166,107
 Products 51,930 34,857 100,070 68,666
 Total revenues 150,996 117,626 296,967 234,773
         
Cost of Sales:        
 Cost of services 81,448 67,191 161,008 134,674
 Cost of products 35,200 28,754 66,319 53,783
 Total cost of sales 116,648 95,945 227,327 188,457
 Gross profit 34,348 21,681 69,640 46,316
         
Operating Expenses:        
 Administrative 8,726 3,770 18,856 10,081
 Salary and payroll taxes 13,386 8,719 26,563 18,335
 Total operating expenses 22,112 12,489 45,419 28,416
 Income from operations 12,236 9,192 24,221 17,900
         
Other Income (Expense):        
 Interest expense (786) (30) (1,691) (68)
 Other income 76 43 107 157
 Total other income (expense) (710) 13 (1,584) 89
         
Income before provision for income taxes 11,526 9,205 22,637 17,989
         
Provision for income taxes 1,566 876 3,020 1,717
         
Net income $9,960 $8,329 $19,617 $16,272
         
Income per share:        
 Basic $0.67 $0.57 $1.32 $1.12
 Diluted(1) $0.66 $0.56 $1.30 $1.10
         
Weighted average shares outstanding:        
 Basic 14,838 14,566 14,795 14,541
 Diluted 15,133 14,727 15,076 14,659
Notes:         
         
(1)  Considers the impact of stock options outstanding of a subsidiary's common stock of $94,000 and $199,000 for the three and six months ended June 30, 2009, 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
         
  Second Quarter Ended Six Months Ended
  June 30, June 30,
  2010 2009 2010 2009
         
Average number of ships served1: 126 122 125 124
Spa 103 97 103 97
Non-Spa 23 25 22 27
         
Average total number of staff on ships served:        
  2,206 2,054 2,153 2,070
Spa 2,019 1,860 1,972 1,866
Non-Spa 187 194 181 204
         
Revenue per staff per day2: $416 $404 $419 $398
Spa $429 $420 $431 $414
Non-Spa $280 $258 $281 $247
         
Average weekly revenues: $50,895 $47,443 $50,605 $46,433
Spa $58,664 $56,140 $58,167 $55,781
Non-Spa $15,985 $13,933 $15,954 $13,020
         
Average number of land-based spas served 3 67 50 67 50
         
Average weekly land-based spas revenues $27,530 $21,886 $28,469 $22,797
         
Total schools revenues $16,128,000 $14,216,000 $33,083,000 $28,921,000
         
Total wholesale and retail product revenues $27,203,000 $13,592,000 $51,483,000 $27,360,000
         
         
         
         
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 period 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, includes fifteen Bliss spas acquired on December 31, 2009, and reflects the fact that during the period spas were opened or closed and, accordingly, the number of spas served during the period varied.
CONTACT:  Steiner Leisure Limited           Leonard I. Fluxman, President and Chief Executive Officer            (305) 358-9002, ext. 215

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