NASSAU, The Bahamas, Oct. 28, 2009 (GLOBE NEWSWIRE) -- Steiner Leisure Limited (Nasdaq:STNR) today announced financial results for the third quarter and nine months ended September 30, 2009.
Steiner Leisure's revenues for the third quarter ended September 30, 2009 decreased 9.6% to $130.9 million from $144.7 million during the comparable quarter in 2008. Net income for the third quarter of 2009 was $10.8 million compared with $13.8 million for the same quarter in 2008. Net income for the third quarter of 2009 includes $1.2 million of nonrecurring costs relating to a proposed strategic opportunity.
Earnings per share for the third quarter ended September 30, 2009 was $0.73 per share, compared with $0.89 per share for the comparable quarter in 2008. The earnings per share data are presented on a diluted basis.
Revenues for the nine months ended September 30, 2009 decreased 12.3% to $365.6 million from $417.1 million during the comparable nine months in 2008. Net income for the nine months ended September 30, 2009 was $27.1 million compared with $34.1 million for the same nine months in 2008.
Earnings per share for the nine months ended September 30, 2009 was $1.82 per share compared with $2.17 per share for the comparable nine 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 126 cruise ships and in 51 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 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 Newington, Groton 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 (EDT) on Thursday, October 29, 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". The call is available for replay from Thursday, October 29, 2009 (approximately 3 hours after the call takes place) through Thursday, November 5, 2009 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-3991 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,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenues:
Services $ 90,292 $ 96,400 $256,399 $276,843
Products 40,572 48,283 109,238 140,229
-------- -------- -------- --------
Total revenues 130,864 144,683 365,637 417,072
-------- -------- -------- --------
Cost of Sales:
Cost of services 72,559 79,079 207,233 226,514
Cost of products 27,450 31,240 81,233 97,199
-------- -------- -------- --------
Total cost of sales 100,009 110,319 288,466 323,713
-------- -------- -------- --------
Gross profit 30,855 34,364 77,171 93,359
-------- -------- -------- --------
Operating Expenses:
Administrative 7,948 8,667 18,029 24,485
Salary and payroll taxes 10,497 10,578 28,832 31,599
-------- -------- -------- --------
Total operating expenses 18,445 19,245 46,861 56,084
-------- -------- -------- --------
Income from operations 12,410 15,119 30,310 37,275
-------- -------- -------- --------
Other Income (Expense):
Interest expense (33) (32) (101) (247)
Other income 28 103 185 354
-------- -------- -------- --------
Total other income (expense) (5) 71 84 107
-------- -------- -------- --------
Income before provision
for income taxes 12,405 15,190 30,394 37,382
Provision for income taxes 1,594 1,398 3,311 3,316
-------- -------- -------- --------
Net income $ 10,811 $ 13,792 $ 27,083 $ 34,066
======== ======== ======== ========
Income per share:
Basic $ 0.74 $ 0.91 $ 1.86 $ 2.20
======== ======== ======== ========
Diluted (1) $ 0.73 $ 0.89 $ 1.82 $ 2.17
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 14,585 15,211 14,556 15,451
Diluted 14,837 15,419 14,719 15,649
Notes:
(1) Considers the impact of stock options outstanding of a
subsidiary's common stock of $34,000 and $76,000 for the three
months ended September 30, 2009 and 2008 and $244,000 and
$64,000 for the nine months ended September 30, 2009 and 2008,
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,
------------------------ ------------------------
2009 2008 2009 2008
----------- ----------- ----------- -----------
Average number of
ships served(1): 126 132 125 128
Spa 101 98 98 96
Non-Spa 25 34 27 32
Average total
number of staff on
ships served: 2,092 2,132 2,077 2,057
Spa 1,898 1,889 1,877 1,821
Non-Spa 194 243 200 236
Revenue per staff
per day(2): $ 440 $ 484 $ 412 $ 474
Spa $ 454 $ 504 $ 428 $ 495
Non-Spa $ 311 $ 325 $ 268 $ 311
Average weekly
revenues: $ 51,302 $ 54,822 $ 48,088 $ 53,320
Spa $ 59,949 $ 68,008 $ 57,219 $ 65,776
Non-Spa $ 16,788 $ 16,417 $ 14,228 $ 16,030
Average number of
land-based spas
served(3) 50 50 50 52
Average weekly
land-based spas
revenues $ 19,473 $ 25,338 $ 21,670 $ 27,553
Total schools
revenues $16,067,000 $13,681,000 $44,988,000 $36,503,000
Total wholesale
and retail product
revenues $17,123,000 $19,771,000 $44,483,000 $57,115,000
(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.