EX-99 2 stnr1qtrearningsrelease.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 First Quarter 2007 Financial Results

NASSAU, THE BAHAMAS, April 25, 2007 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the first quarter ended March 31, 2007.

Financial Results

Steiner Leisure's revenues for the first quarter ended March 31, 2007 rose 18.4% to $123.7 million from $104.5 million during the comparable quarter in 2006. Income from continuing operations, before discontinued operations for the first quarter, was $10.8 million compared with $10.6 million for the same quarter in 2006. The income from continuing operations for the first quarter of 2006 included $440,000 of insurance proceeds received related to the Tsunami that hit various Asian regions in December 2004 and damaged most of our operations in the Maldive Islands.

Earnings per share before discontinued operations for the first quarter ended March 31, 2007 was $0.62 per share, compared with $0.59 per share for the comparable quarter in 2006. The earnings per share data are presented on a diluted basis.

Leonard I. Fluxman, President and Chief Executive Officer of Steiner Leisure, commented "We are pleased with our first quarter results. Most of the key elements of our businesses performed well."

Corporate Overview

Steiner Leisure Limited is a worldwide provider of spa services. The Company's operations include spas and salons on 130 cruise ships, and in 54 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 timetospa.com.

Steiner Leisure owns and operates four post secondary schools (comprised of a total of 14 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; and Westminster and Aurora, Colorado. 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.

Conference Call

The Company will be holding a conference call at 11:00 am (EST) on Thursday, April 26, 2007. 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, April 26, 2007 (approximately 3 hours after the call takes place) until Saturday, May 5, 2007 at approximately 5:00 pm. You may reach it by dialing (203) 369-1075 for both domestic and international calls.


SELECTED FINANCIAL DATA

($ in thousands, except per share data)

(Unaudited)

   

First Quarter Ended

   
   

March 31,

   
   

2007(1)

 

2006

       

Revenues:

               

    Services

$

84,247

$

70,946

       

    Products

 

39,490

 

33,603

       

        Total revenues

123,737

104,549

                 

Cost of Sales:

               

    Cost of services

 

67,487

 

56,503

       

    Cost of products

 

27,754

 

24,377

       

        Total cost of sales

 

95,241

 

80,880

       

        Gross profit

 

28,496

 

23,669

       
                 

Operating Expenses:

               

    Administrative

 

7,862

 

5,795

       

    Salary and payroll taxes

 

9,285

 

7,355

       

        Total operating expenses

 

17,147

 

13,150

       

        Income from continuing operations

 

11,349

 

10,519

       
                 

Other Income (Expense):

               

    Interest expense

 

(44

)

(12

)

     

    Other income

 

569

 

925

       

        Total other income (expense)

 

525

 

913

       
                 

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

 


11,874

 

11,432

       
                 

Provision for income taxes

 

1,095

 

851

       
                 

Income from continuing operations before discontinued operations


10,779


10,581

                 

Income from discontinued operations, net of taxes

 

--

 

225

       
                 

Net income

$

10,779

$

10,806

Income per share-Basic:

    Income before discontinued operations

$

0.63

$

0.61

    Income from discontinued operations

--

0.01

$

0.63

$

0.62

Income per share-Diluted (2):

    Income before discontinued operations

$

0.62

$

0.59

    Income from discontinued operations

--

0.01

$

0.62

$

0.60

Weighted average shares outstanding:

    Basic

17,023

17,370

    Diluted

17,387

17,959

Notes:

  1. Includes post acquisition results of Utah College of Massage Therapy ("UCMT") and an affiliate which were acquired on April 3, 2006.
  2. Considers the impact of stock options outstanding of a subsidiary's common stock of $42,000 and $13,000 as of March 31, 2007 and 2006, respectively.

STATISTICS

First Quarter Ended
(Unaudited)

   

March 31,

   
   

2007

 

2006

       
                 

Average number of ships served1:

 

125

 

116

       

Spa

 

92

 

83

       

Non-Spa

 

33

 

33

       
                 

Average total number of staff on ships served:

 


1,938

 

1,695

       

Spa

 

1,695

 

1,465

       

Non-Spa

 

243

 

230

       
                 

Revenue per staff per day2:

$

455

$

460

       

Spa

$

475

$

483

       

Non-Spa

$

317

$

311

       
                 

Average weekly revenues:

$

49,443

$

47,128

       

Spa

$

61,525

$

59,957

       

Non-Spa

$

16,207

$

15,120

       
                 

Average number of land based spas served3

 

55

 

55

       
                 

Average weekly land based spas revenues

$

26,484

$

27,869

       
                 

Total schools revenues4,5

$

11,943,000

$

5,108,000

       
                 

Total wholesale and retail product revenues

$

13,875,000

$

9,559,000

       

_____________

1 Average number of ships served reflects the fact that during the periods ships were in and out of service and, accordingly, the number of ships served during the periods 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 and closed and, accordingly, the number of spas served during the period varied.

4 Includes $80,000 and $169,000 for the three months ended March 31, 2007 and 2006, respectively, relating to the Steiner training school near London, England.

5 Includes post acquisition results of UCMT, which was acquired on April 3, 2006.