EX-99 2 exhibit99_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

Second Quarter 2009 Financial Results

NASSAU, THE BAHAMAS, July 29, 2009 - Steiner Leisure Limited (NASDAQ: STNR) today announced financial results for the second quarter ended June 30, 2009.

Steiner Leisure's revenues for the second quarter ended June 30, 2009 decreased 13.3% to $117.6 million from $135.7 million during the comparable quarter in 2008. Net income for the second quarter, was $8.3 million compared with $10.6 million for the same quarter in 2008. In the second quarter, 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, 2009 was $0.56 per share, compared with $0.68 per share for the comparable quarter in 2008. The earnings per share data are presented on a diluted basis.

Revenues for the six months ended June 30, 2009 decreased 13.8% to $234.8 million from $272.4 million during the comparable six months in 2008. Net income for the six months ended June 30, 2009 was $16.3 million compared with $20.3 million for the same six months in 2008.

Earnings per share for the six months ended June 30, 2009 was $1.10 per share compared with $1.29 per share for the comparable six months in 2008. 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 spas and salons on 127 cruise ships and in 50 resort spas and two luxury day spas. 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, Ritz-Carlton, Royal Caribbean Cruises, Seabourn Cruise Lines, Sofitel Luxury Hotels, Starwood Hotels and Resorts and Westin Hotels and Resorts. Our Elemis Limited subsidiary manufactures its Elemis(r) 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, department stores and destination spas. Elemis, as well as other Steiner products, including La Therapie(r), Ionithermie, and Steiner Hair Care, are available at www.timetospa.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 30, 2009. 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 30, 2009 (approximately 3 hours after the call takes place) until Thursday, August 6, 2009 at approximately 5:00 pm. You may reach it by dialing (203) 369-1835 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,

  
   

2009

  

2008

  

2009

  

2008

  

Revenues:

                  

    Services

$

82,769

$

89,280

$

166,107

$

180,443

  

    Products

  

34,857

  

46,393

  

68,666

  

91,946

  

        Total revenues

117,626

135,673

234,773

272,389

                   

Cost of Sales:

                  

    Cost of services

  

67,191

  

73,551

  

134,674

  

147,435

  

    Cost of products

  

28,754

  

32,566

  

53,783

  

65,959

  

        Total cost of sales

  

95,945

  

106,117

  

188,457

  

213,394

  

        Gross profit

  

21,681

  

29,556

  

46,316

  

58,995

  
                   

Operating Expenses:

                  

    Administrative

  

3,770

  

7,696

  

10,081

  

15,818

  

    Salary and payroll taxes

  

8,719

  

10,266

  

18,335

  

21,021

  

        Total operating expenses

  

12,489

  

17,962

  

28,416

  

36,839

  

        Income from operations

  

9,192

  

11,594

  

17,900

  

22,156

  
                   

Other Income (Expense):

                  

    Interest expense

  

(30

)

(115

)

(68

)

(215

)

    Other income

  

43

  

113

  

157

  

251

  

        Total other income (expense)

  

13

  

(2

)

89

  

36

  
                   

Income before provision for income taxes

  

9,205

  

11,592

  

17,989

  

22,192

  
                   

Provision for income taxes

  

876

  

1,021

  

1,717

  

1,918

  
                   

Net income

$

8,329

$

10,571

$

16,272

$

20,274

Income per share:

    Basic

$

0.57

$

0.69

$

1.12

$

1.30

    Diluted(1)

$

0.56

$

0.68

$

1.10

$

1.29

Weighted average shares outstanding:

    Basic

14,566

15,409

14,541

15,572

    Diluted

14,727

15,581

14,659

15,748

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. The impact of these stock options were anti-dilutive for the three and six months ended June 30, 2008, respectively.

STATISTICS

   

Second Quarter Ended

  

Six Months Ended

June 30,

June 30,
   

2009

  

2008

  

2009

  

2008
                 

Average number of ships served1:

  

122

  

125

  

124

  

126

Spa

  

97

  

95

  

97

  

95

Non-Spa

  

25

  

30

  

27

  

31
                 

Average total number of staff on ships served:

  


2,054

  


2,031

  


2,070

  


2,020

Spa

  

1,860

  

1,802

  

1,866

  

1,788

Non-Spa

  

194

  

229

  

204

  

232
                 

Revenue per staff per day2:

$

404

$

468

$

398

$

469

Spa

$

420

$

488

$

414

$

491

Non-Spa

$

258

$

306

$

247

$

304
                 

Average weekly revenues:

$

47,443

$

53,177

$

46,433

$

52,530

Spa

$

56,140

$

65,158

$

55,781

$

64,613

Non-Spa

$

13,933

$

16,057

$

13,020

$

15,820
                 

Average number of land-based spas served 3

  

50

  

51

  

50

  

53
                 

Average weekly land-based spas revenues

$

21,886

$

28,213

$

22,797

$

28,859
                 

Total schools revenues

$

14,216,000

$

11,090,000

$

28,921,000

$

22,822,000
                 

Total wholesale and retail product revenues

$

13,592,000

$

19,264,000

$

27,360,000

$

37,344,000

_____________

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.