NASSAU, The Bahamas, Feb. 25, 2009 (GLOBE NEWSWIRE) -- Steiner Leisure Limited (Nasdaq:STNR) today announced financial results for the fourth quarter and year ended December 31, 2008.
Steiner Leisure's revenues for the fourth quarter ended December 31, 2008 decreased 8.5% to $123.7 million from $135.2 million during the comparable quarter in 2007. Net income for the fourth quarter of 2008 was $11.8 million compared with $11.0 million for the same quarter in 2007. Net income for the fourth quarter of 2008 includes a net $3.5 million pre-tax gain resulting from the strengthening of the U.S. dollar against the British pound and the Euro.
Earnings per share for the fourth quarter ended December 31, 2008 was $0.79 per share, compared with $0.67 per share for the comparable quarter in 2007. The earnings per share data are presented on a diluted basis.
Revenues for the year ended December 31, 2008 rose 2.2% to $540.8 million from $529.2 million in 2007. Net income for the year ended December 31, 2008 was $45.9 million compared with $44.7 million in 2007. Net income for 2008 includes a net $5.3 million pre-tax gain resulting from the strengthening of the U.S. dollar against the British pound and the Euro.
Earnings per share for the year ended December 31, 2008 was $2.96 per share compared with $2.63 per share in 2007. 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 131 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 (EST) on Thursday, February 26, 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, February 26, 2009 (approximately 3 hours after the call takes place) through Thursday, March 5, 2009 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-3181 for both domestic and international calls.
SELECTED FINANCIAL DATA
($ and shares in thousands, except per share data)
(Unaudited)
Fourth Quarter Ended Year Ended
December 31, December 31,
-------------------- ---------------------
2008 2007 2008 2007
--------- --------- ---------- ----------
Revenues:
Services $ 83,976 $ 88,005 $ 360,819 $ 351,503
Products 39,721 47,208 179,950 177,717
--------- --------- ---------- ----------
Total revenues 123,697 135,213 540,769 529,220
--------- --------- ---------- ----------
Cost of Sales:
Cost of services 68,394 71,343 294,908 283,596
Cost of products 21,806 33,144 119,005 127,045
--------- --------- ---------- ----------
Total cost of sales 90,200 104,487 413,913 410,641
--------- --------- ---------- ----------
Gross profit 33,497 30,726 126,856 118,579
--------- --------- ---------- ----------
Operating Expenses:
Administrative 10,145 9,239 34,630 33,080
Salary and payroll taxes 10,430 9,724 42,029 37,816
--------- --------- ---------- ----------
Total operating
expenses 20,575 18,963 76,659 70,896
--------- --------- ---------- ----------
Income from operations 12,922 11,763 50,197 47,683
--------- --------- ---------- ----------
Other Income (Expense):
Interest expense (22) (87) (269) (367)
Other income 109 243 463 1,595
--------- --------- ---------- ----------
Total other income
(expense) 87 156 194 1,228
--------- --------- ---------- ----------
Income before provision for
income taxes 13,009 11,919 50,391 48,911
Provision for income taxes 1,193 936 4,509 4,214
--------- --------- ---------- ----------
Net income $ 11,816 $ 10,983 $ 45,882 $ 44,697
========= ========= ========== ==========
Income per share:
Basic $ 0.81 $ 0.68 $ 3.01 $ 2.69
========= ========= ========== ==========
Diluted(1) $ 0.79 $ 0.67 $ 2.96 $ 2.63
========= ========= ========== ==========
Weighted average shares
outstanding:
Basic 14,664 16,055 15,253 16,626
Diluted 14,786 16,413 15,433 16,990
Notes:
1. Considers the impact of outstanding stock options of a
subsidiary's common stock of $126,000 and $19,000 for the three
months ended December 31, 2008 and 2007, respectively, and
$190,000 and $55,000 for the year ended December 31, 2008 and
2007, respectively.
STATISTICS
Fourth Quarter Ended Year Ended
December 31, December 31,
----------------------- -----------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Average number
of ships served(1): 128 126 128 127
Spa 97 95 96 94
Non-Spa 31 31 32 33
Average total number
of staff on ships
served: 2,135 1,986 2,077 1,978
Spa 1,913 1,751 1,844 1,741
Non-Spa 222 235 233 237
Revenue per staff
per day(2): $ 396 $ 457 $ 454 $ 472
Spa $ 414 $ 475 $ 474 $ 492
Non-Spa $ 241 $ 317 $ 295 $ 327
Average weekly
revenues: $ 46,222 $ 50,204 $ 51,538 $ 51,592
Spa $ 56,923 $ 61,430 $ 63,528 $ 63,921
Non-Spa $ 12,262 $ 16,472 $ 15,115 $ 16,519
Average number of
land-based spas
operated(3) 50 53 52 54
Average weekly
land-based
spas revenues $ 22,203 $ 26,784 $ 26,243 $ 26,339
Total schools
revenues $14,072,000 $11,073,000 $50,575,000 $46,226,000
Total wholesale
and retail
product revenues $17,226,000 $21,904,000 $74,340,000 $68,003,000
(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 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.