EX-99 2 stnrexhibit99_1.htm STEINER LEISURE LIMITED

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 Record Fourth Quarter and 2005 Financial Results

NASSAU, THE BAHAMAS, March 1, 2006 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the fourth quarter and year ended December 31, 2005.

Financial Results

Steiner Leisure's revenues for the fourth quarter ended December 31, 2005 rose 15.6% to $101.1 million from $87.5 million during the comparable quarter in 2004. Income from continuing operations, before discontinued operations for the fourth quarter, was $10.8 million compared with $10.0 million for the same quarter in 2004. The income from continuing operations before discontinued operations for the fourth quarter of 2004 included a gain of approximately $1.5 million related to the sale of the Company's 49% ownership interest in each of two entities that operate resort spas in Thailand and China, respectively, to the 51% owner thereof.

During the fourth quarter of 2005, the Company reversed a liability relating to its discontinued day spa operations resulting in a discontinued operations gain of $800,000.

Earnings per share before discontinued operations for the fourth quarter ended December 31, 2005 was $0.61 per share, compared with $0.55 per share for the comparable quarter in 2004. The earnings per share before discontinued operations for the fourth quarter of 2004 included $0.08 related to the sale of the Company's ownership interest discussed above. The earnings per share data are presented on a diluted basis.

Revenues for the year ended December 31, 2005, rose 16.3% to $397.2 million from $341.5 million in 2004. Income from continuing operations, before discontinued operations for the year ended December 31, 2005, was $40.4 million, compared with $35.9 million in 2004.

Earnings per share before discontinued operations for the year ended December 31, 2005 was $2.23 per share compared with $2.03 per share in 2004. The above earnings per share data are presented on a diluted basis.

Leonard I. Fluxman, President and Chief Executive Officer of Steiner Leisure, commented "We are very pleased with our record fourth quarter and annual financial results. The strong execution by our personnel allowed us to generate strong earnings growth and cash flow in 2005."

Corporate Overview

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 122 cruise ships, and in 56 resort spas and two luxury day spas. Our cruise line and land-based resort customers include Carnival Cruise Lines, Caesars Entertainment, Celebrity Cruises, Crystal Cruises, Cunard/Seabourn Cruise Lines, Hilton Hotels, Holland America Line, Kerzner International, Marriott Hotels, Norwegian Cruise Lines, Princess Cruises and Royal Caribbean Cruises. 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 is also distributed worldwide to exclusive hotels, salons, health clubs and destination spas. Elemis®, as well as other Steiner products, including La Therapie®, Ionithermie, and Steiner Hair Care, are available at www.timetospa.com>

Steiner Leisure also owns and operates three post secondary schools (comprised of a total of seven campuses) located in Miami, Fort Lauderdale, Orlando and Sarasota, Florida; Baltimore, Maryland; York, Pennsylvania and Charlottesville, Virginia. Offering degree and non-degree programs in massage therapy and skin care, these schools train and qualify spa professionals for health and beauty positions within the Steiner family of companies or other industry entities.

Conference Call

The Company will be holding a conference call at 11:00 am (EST) on Thursday, March 2, 2006. 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 (706) 679-5917 for domestic and international calls approximately five minutes before the scheduled time. This call is available for replay from Thursday. March 2, 2006 (approximately 3 hours after the call takes place) until Wednesday, March 8, 2006 at 11:00 pm. You may reach it by dialing (706) 645-9291 for both domestic and international calls. The conference ID # is 5180283.

SELECTED FINANCIAL DATA

($ in thousands, except per share data)

(Unaudited)

   

Fourth Quarter Ended

Year Ended
   

December 31,

December 31,
   

2005

  

2004

  

2005

  

2004

Revenues:

                

    Services

$

67,259

$

58,912

$

268,401

$

233,350

    Products

  

33,879

  

28,546

  

128,817

  

108,141

        Total revenues

101,138

87,458

397,218

341,491
                 

Cost of Sales:

                

    Cost of services

  

54,316

  

47,297

  

214,022

  

185,294

    Cost of products

  

24,945

  

21,548

  

96,588

  

80,512

        Total cost of sales

  

79,261

  

68,845

  

310,610

  

265,806

        Gross profit

  

21,877

  

18,613

  

86,608

  

75,685
                 

Operating Expenses:

                

    Administrative

  

5,002

  

5,153

  

20,837

  

18,493

    Salary and payroll taxes

  

5,290

  

4,225

  

22,348

  

18,838

        Total operating expenses

  

10,292

  

9,378

  

43,185

  

37,331

        Income from continuing operations

  

11,585

  

9,235

  

43,423

  

38,354
                 

Other Income (Expense):

                

    Interest expense

  

(82

)

(47

)

(275

)

(1,525)

    Equity and minority interest

  

--

  

--

  

--

  

292

    Other income

  

220

  

1,593

  

553

  

1,679

        Total other income (expense)

  

138

  

1,546

  

278

  

446
                 

Income from continuing operations before provision for income taxes and discontinued operations

  


11,723

  


10,781

  


43,701

  


38,800
                 

Provision for income taxes

  

885

  

753

  

3,302

  

2,912
                 

Income from continuing operations before discontinued operations

  

10,838

  

10,028

  

40,399

  

35,888
                 

Income from discontinued operations (which includes gain on disposal of $239 and $145 for the three months and year ended December 31, 2004), net of taxes

  




788






210







769






90
                 
                 

Net income

$

11,626

$

10,238

$

41,168

$

35,978

Income per share-Basic:

    Income before discontinued operations

$

0.63

$

0.57

$

2.32

$

2.12

    Income from discontinued operations

0.05

0.02

0.04

0.01

$

0.68

$

0.59

$

2.36

$

2.13

Income per share-Diluted:

    Income before discontinued operations

$

0.61

$

0.55

$

2.23

$

2.03

    Income from discontinued operations

0.04

0.01

0.04

0.01

$

0.65

$

0.56

$

2.27

$

2.04

Weighted average shares outstanding:

    Basic

17,174

17,458

17,401

16,899

    Diluted

17,842

18,359

18,159

17,643

STATISTICS

   

Fourth Quarter Ended

  

Year Ended

December 31,

December 31,
   

2005

  

2004

  

2005

  

2004
                 

Average number of ships served1:

  

112

  

110

  

115

  

109

Spa

  

82

  

77

  

83

  

75

Non-Spa

  

30

  

33

  

32

  

34
                 

Average total number of staff on ships served:

  


1,656

  


1,493

  


1,653

  


1,471

Spa

  

1,443

  

1,266

  

1,424

  

1,242

Non-Spa

  

213

  

227

  

229

  

229
                 

Revenue per staff per day2:

$

450

$

428

$

455

$

427

Spa

$

470

$

451

$

477

$

449

Non-Spa

$

315

$

300

$

314

$

306
                 

Average weekly revenues:

$

46,475

$

40,826

$

45,721

$

40,183

Spa

$

57,619

$

52,227

$

57,508

$

51,791

Non-Spa

$

15,681

$

14,411

$

15,571

$

14,420
                 

Average number of land-based spas operated3

  


53

  


51

  


50

  


52
                 

Average weekly land-based spas revenues

$

25,524

$

24,129

$

26,441

$

24,303
                 

Total schools revenues4

$

4,393,000

$

3,613,000

$

17,750,000

$

16,866,000
                 

Total wholesale and retail product revenues

$

10,481,000

$

8,728,000

$

36,294,000

$

29,019,000

_____________

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 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.

4Includes $130,000 and $156,000 for the three months ended December 31, 2005 and 2004, respectively, and $670,000 and $747,000 for the year ended December 31, 2005 and 2004, respectively, relating to the Steiner training school near London, England.