NASSAU, The Bahamas, Dec. 23, 2013 (GLOBE NEWSWIRE) -- Steiner Leisure Limited (the "Company") (Nasdaq:STNR) has been advised by Celebrity Cruises that the Company's agreement to serve Celebrity's vessels would not be renewed after its expiration on December 31, 2013.
The Company is negotiating a transition plan as to the turnover of the ships to the new vendor. We currently estimate that the impact of the termination of this agreement on the fully diluted earnings per share of the Company for 2014 should not be a reduction of greater than $0.24 per share. This estimate is subject to finalization of the transition plan.
As previously disclosed, Steiner Leisure currently has $93.3 million available under its share repurchase plan. Once our trading window reopens, currently scheduled for February 25, 2014, repurchases will continue to be made in the open market or in privately negotiated transactions, subject to regulatory considerations, market conditions, and the Company's debt agreement.
Leonard Fluxman, President and Chief Executive Officer of Steiner Leisure, said, "We, of course, are disappointed with Celebrity's decision, particularly in view of our revenues being at historical highs on Celebrity's ships. We believe that the terms we proposed for renewal contained compelling economics and it also contained a unique brand at sea. It is our understanding that Celebrity's decision was made purely from a marketing perspective. We hope that we will have the opportunity to serve more Celebrity ships at some time in the future."
Steiner Leisure Limited is a worldwide provider and innovator in the fields of beauty, wellness and education. We are dedicated to maintaining the highest quality standards and continually evolving to include and anticipate new developments within our industry. We aim to maintain and expand our existing diverse portfolio of services, products and brands, as well as to seek out new opportunities to complement our business.
Our services include traditional and alternative massage, body and skin treatment options, fitness, acupuncture, herbal medicine, medi-spa treatments and laser hair removal. We are committed to providing our customers with a wide-ranging assortment of beauty products, including premium quality options developed by us under our own brands, as well as those purchased from third parties.
Our distribution channels include our shipboard and land-based spas and salons, destination spas, health clubs, department stores and third party retail outlets and distributors. We also sell our products on certain British Airways flights, on QVC, by catalog, and online through our websites, including www.timetospa.com and www.blissworld.com.
Our post-secondary schools offer programs in massage therapy and skin care, among others, and, along with our recruiting and training operations, prepare spa professionals for careers in the health and wellness industry, including within the Steiner family of companies.
Our cruise line operations are conducted in spas onboard 155 ships, including Azamara Club Cruises, Carnival Cruise Lines, Celebrity Cruises, Costa Cruises, Crystal Cruises, Cunard Cruise Line, Holland America Line, Ibero Cruises, Norwegian Cruise Line, P&O Cruises, Princess Cruises, Pullmantur Cruises, Royal Caribbean Cruises, Seabourn Cruise Lines, Silversea Cruises and Windstar Cruises.
Our land-based spa operations are carried out under our Elemis®, Mandara®, Chavana®, Bliss® and Remède® brands and take place in 69 locations, including resort spas, urban hotel spas and day spas. In addition, a total of 28 resort and hotel spas are operated under our brands by third parties pursuant to license agreements with the company. Our land-based customers include Caesar's Entertainment, Hilton Hotels, Kerzner International, Loews Hotels, Marriott Hotels, Nikko Hotels, Planet Hollywood, Sofitel Luxury Hotels, St. Regis Hotels, W Hotels and Resorts and Westin Hotels and Resorts.
Our Ideal Image customized laser hair removal services are provided by highly trained, experienced practitioners through a nationwide network of 124 treatment centers (17 of which are operated by franchisees) across 31 states, as well as one location in Canada.
We develop and sell a variety of high quality beauty products under our Elemis, La Thérapie™, Bliss, Remède, Laboratoire Remède® and Jou® brands.
Our schools operations consist of 12 post-secondary schools (comprised of a total of 31 campuses) located in Phoenix, Scottsdale, Tempe and Tucson, Arizona; Westminster and Aurora, Colorado; Groton, Newington and Westport, Connecticut; Miami, Orlando, Pompano Beach, Sarasota and Tampa/St. Pete, Florida; Chicago, Crystal Lake and Woodridge, Illinois; Baltimore, Maryland; Boston, Massachusetts; Las Vegas, Nevada; Hoboken and Wall, New Jersey; King of Prussia and York, Pennsylvania; Dallas and Houston, Texas; Salt Lake City and Lindon, Utah; Charlottesville, Virginia; and Federal Way and Seattle, Washington. Offering programs in massage therapy and, in some cases, skin care, these schools train and qualify spa professionals for health and beauty positions within the industry, including our own operations.
As part of our employee recruitment operations for our shipboard spas, we provide education to our shipboard employees through our rigorous training programs, at our primary training facilities near London, England or one of our satellite training centers in South Africa and the Philippines. These employees are sourced primarily from the British Isles, Australia, South Africa, Southeast Asia, Canada, the Caribbean and continental Europe.
Forward-looking Statements
The above statements relating to the effect on our earnings per share of the non-renewal of our agreement with Celebrity Cruises and our future share repurchases may be deemed to be forward looking statements for purposes of the federal securities laws. Such forward-looking statement are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performances or achievements to differ materially from future results, performance or achievements expressed or implied in such forward-looking statements. The statement regarding the effect of the non-renewal by Celebrity Cruises is subject to, among other things and as indicated above, the terms of the final transition plan between us and Celebrity Cruises as well as operational matters that may arise in the course of a transition of this nature. The statement regarding future share repurchases is, as indicated above, subject to the contingencies set forth in that statement. Other factors are described in Steiner Leisure Limited's Annual Report on Form 10-K for 2012 and in subsequent filings with the Securities and Exchange Commission.