NASSAU, The Bahamas, Oct. 29, 2008 (GLOBE NEWSWIRE) -- Steiner Leisure Limited (Nasdaq:STNR) today announced financial results for the third quarter and nine months ended September 30, 2008.
Steiner Leisure's revenues for the third quarter ended September 30, 2008 rose 3.0% to $144.7 million from $140.4 million during the comparable quarter in 2007. Net income for the third quarter of 2008 was $13.8 million compared with $11.4 million for the same quarter in 2007. Net income for the third quarter of 2008 includes a net $1.4 million gain resulting from the strengthening of the U.S. dollar against the British pound and the Euro.
Earnings per share for the third quarter ended September 30, 2008 was $0.89 per share, compared with $0.68 per share for the comparable quarter in 2007. The earnings per share data are presented on a diluted basis.
Revenues for the nine months ended September 30, 2008 rose 5.9% to $417.1 million from $394.0 million during the comparable nine months in 2007. Net income for the nine months ended September 30, 2008 was $34.1 million compared with $33.7 million for the same nine months in 2007.
Earnings per share for the nine months ended September 30, 2008 was $2.17 per share compared with $1.96 per share for the comparable nine months 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 133 cruise ships, and in 48 resort spas and two luxury day spas. Our cruise line and land-based resort customers include Carnival Cruise Lines, Caesars Entertainment, Celebrity Cruises, Crystal Cruises, Cunard/Seabourn Cruise Lines, Hilton Hotels, Holland America Line, Kerzner International, Marriott Hotels, Norwegian Cruise Lines, Princess Cruises and Royal Caribbean Cruises. 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 and destination spas. Elemis(r), 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 30, 2008. 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 30, 2008 (approximately 3 hours after the call takes place) through Thursday, November 6, 2008 at approximately 5:00 pm (EST). You may reach it by dialing (203) 369-0247 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,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenues:
Services $ 96,400 $ 92,682 $276,843 $263,498
Products 48,283 47,749 140,229 130,509
-------- -------- -------- --------
Total revenues 144,683 140,431 417,072 394,007
-------- -------- -------- --------
Cost of Sales:
Cost of services 79,079 75,269 226,514 212,253
Cost of products 31,240 35,185 97,199 93,901
-------- -------- -------- --------
Total cost of sales 110,319 110,454 323,713 306,154
-------- -------- -------- --------
Gross profit 34,364 29,977 93,359 87,853
-------- -------- -------- --------
Operating Expenses:
Administrative 8,667 8,332 24,485 23,841
Salary and payroll taxes 10,578 9,452 31,599 28,092
-------- -------- -------- --------
Total operating expenses 19,245 17,784 56,084 51,933
-------- -------- -------- --------
Income from operations 15,119 12,193 37,275 35,920
-------- -------- -------- --------
Other Income (Expense):
Interest expense (32) (132) (247) (280)
Other income 103 397 354 1,352
-------- -------- -------- --------
Total other income (expense) 71 265 107 1,072
-------- -------- -------- --------
Income before provision for
income taxes 15,190 12,458 37,382 36,992
Provision for income taxes 1,398 1,085 3,316 3,278
-------- -------- -------- --------
Net income $ 13,792 $ 11,373 $ 34,066 $ 33,714
======== ======== ======== ========
Income per share:
Basic $ 0.91 $ 0.69 $ 2.20 $ 2.00
======== ======== ======== ========
Diluted(1) $ 0.89 $ 0.68 $ 2.17 $ 1.96
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 15,211 16,519 15,451 16,818
Diluted 15,419 16,837 15,649 17,182
Notes:
(1) Considers the impact of stock options outstanding of a
subsidiary's common stock of $76,000 for the three months ended
September 30, 2008 and $64,000 and $37,000 for the nine months
ended September 30, 2008 and 2007, respectively. The impact was
anti-dilutive for the three months ended September 30, 2007.
STATISTICS
Third Quarter Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Average number of
ships served(1): 132 129 128 127
Spa 98 95 96 94
Non-Spa 34 34 32 33
Average total
number of staff on
ships served: 2,132 2,021 2,057 1,976
Spa 1,889 1,784 1,821 1,737
Non-Spa 243 237 236 239
Revenue per staff
per day(2): $ 484 $ 503 $ 474 $ 477
Spa $ 504 $ 523 $ 495 $ 498
Non-Spa $ 325 $ 357 $ 311 $ 331
Average weekly
revenues: $ 54,822 $ 55,213 $ 53,320 $ 52,058
Spa $ 68,008 $ 68,395 $ 65,776 $ 64,773
Non-Spa $ 16,417 $ 17,684 $ 16,030 $ 16,533
Average number of
land-based spas
served(3) 50 53 52 54
Average weekly
land-based spas
revenues $ 25,338 $ 25,880 $ 27,553 $ 26,191
Total schools
revenues $13,681,000 $11,804,000 $36,503,000 $35,154,000
Total wholesale and
retail product
revenues $19,771,000 $16,892,000 $57,115,000 $46,099,000
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(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.