NASSAU, The Bahamas, Oct. 27, 2010 (GLOBE NEWSWIRE) -- Steiner Leisure Limited (Nasdaq:STNR) today announced financial results for the third quarter and nine months ended September 30, 2010. The quarter and nine months ended September 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 third quarter ended September 30, 2010 increased 23.1% to $161.1 million from $130.9 million during the comparable quarter in 2009. Net income for the third quarter of 2010 was $11.8 million compared with $10.8 million for the same quarter in 2009. Net income for the third quarter of 2010 includes a one time charge of $427,000 relating to tax planning for a foreign subsidiary. Net income for the third quarter of 2009 included $1.2 million of transaction costs relating to the acquisition of Bliss World Holdings, Inc.

Earnings per share for the third quarter ended September 30, 2010 was $0.78 per share, compared with $0.73 per share for the comparable quarter in 2009. The earnings per share data are presented on a diluted basis.

Revenues for the nine months ended September 30, 2010 increased 25.3% to $458.1 million from $365.6 million during the comparable nine months in 2009. Net income for the nine months ended September 30, 2010 was $31.4 million compared with $27.1 million for the same nine months in 2009. These 2010 and 2009 results include the one time charge and transaction costs discussed above.

Earnings per share for the nine months ended September 30, 2010 was $2.08 per share compared with $1.82 per share for the comparable nine 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 133 cruise ships and 71 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 in other industry entities or within the Steiner family of companies.

The Company will be holding a conference call at 11:00 am (EDT) on Thursday, October 28, 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, October 28, 2010 (approximately 3 hours after the call takes place) through Thursday, November 4, 2010 at approximately 5:00 pm  (EDT). You may reach it by dialing (402) 998-0962 for both domestic and international calls.  
SELECTED FINANCIAL DATA
($ and shares in thousands, except per share data)
(Unaudited)
  Third Quarter Ended Nine Months Ended
  September 30, September 30,
  2010 2009 2010 2009
Revenues:        
 Services $108,076 $90,292 $304,973 $256,399
 Products 53,068 40,572 153,138 109,238
 Total revenues 161,144 130,864 458,111 365,637
         
Cost of Sales:        
 Cost of services 88,210 72,559 249,218 207,233
 Cost of products 36,932 27,450 103,251 81,233
 Total cost of sales 125,142 100,009 352,469 288,466
 Gross profit 36,002 30,855 105,642 77,171
         
Operating Expenses:        
 Administrative 7,922 7,948 26,778 18,029
 Salary and payroll taxes 13,184 10,497 39,747 28,832
 Total operating expenses 21,106 18,445 66,525 46,861
 Income from operations 14,896 12,410 39,117 30,310
         
Other Income (Expense):        
 Interest expense (959) (33) (2,650) (101)
 Other income 28 28 135 185
 Total other income (expense) (931) (5) (2,515) 84
         
Income before provision for income taxes 13,965 12,405 36,602 30,394
         
Provision for income taxes 2,214 1,594 5,234 3,311
         
         
Net income $11,751 $10,811 $31,368 $27,083
         
Income per share:        
 Basic $0.79 $0.74 $2.12 $1.86
 Diluted (1)  $0.78 $0.73 $2.08 $1.82
         
         
Weighted average shares outstanding:        
 Basic 14,860 14,585 14,817 14,556
 Diluted 15,093 14,837 15,082 14,719
         
         
         
         
Notes:       
(1)  Considers the impact of stock options outstanding of a subsidiary's common stock of $34,000 and $244,000 for the three and nine months ended September 30, 2009, respectively. In July 2009, the Company entered into a transaction with the shareholders of these stock options in which they were exchanged for restricted share units of the Company.
     

STATISTICS
         
  Third Quarter Ended Nine Months Ended
  September 30, September 30,
  2010 2009 2010 2009
         
Average number of ships served 1: 131 126 127 125
Spa 106 101 104 98
Non-Spa 25 25 23 27
         
         
 Average total number of staff on ships served: 2,309 2,092 2,206 2,077
Spa 2,099 1,898 2,015 1,877
Non-Spa 210 194 191 200
         
Revenue per staff per day 2: $442 $440 $427 $412
Spa $455 $454 $440 $428
Non-Spa $314 $311 $293 $268
         
Average weekly revenues: $54,357 $51,302 $51,913 $48,088
Spa $62,699 $59,949 $59,735 $57,219
Non-Spa $18,563 $16,788 $16,896 $14,228
         
Average number of land-based spas served 3 69 50 68 50
         
Average weekly land-based spas revenues $26,274 $19,473 $27,714 $21,670
         
Total schools revenues $16,659,000 $16,067,000 $49,742,000 $44,988,000
         
Total wholesale and retail product revenues $26,808,000 $17,123,000 $78,291,000 $44,483,000
         
         
_____________        
         
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 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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