NASSAU, The Bahamas, July 29, 2009 (GLOBE NEWSWIRE) -- 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
served(1): 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
day(2): $ 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.