×

Steiner Leisure Limited Announces Second Quarter 2013 Financial Results

NASSAU, The Bahamas, July 31, 2013 (GLOBE NEWSWIRE) -- Steiner Leisure Limited (Nasdaq:STNR) today announced financial results for the second quarter ended June 30, 2013.

Steiner Leisure's revenues for the second quarter ended June 30, 2013 increased 5.2% to $207.7 million from $197.5 million during the comparable quarter in 2012. Net income for the second quarter was $12.3 million compared with $14.1 million for the same quarter in 2012.

Earnings per share for the second quarter ended June 30, 2013 was $0.83 per share, compared with $0.92 per share for the comparable quarter in 2012. The earnings per share data are presented on a diluted basis.

Revenues for the six months ended June 30, 2013 increased 6.0% to $419.7 million from $396.0 million during the comparable six months in 2012. Net income for the six months ended June 30, 2013 was $25.0 million compared with $28.6 million for the same six months in 2012.

Earnings per share for the six months ended June 30, 2013 was $1.69 per share compared with $1.87 per share for the comparable six months in 2012. The above earnings per share data are presented on a diluted basis.

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 159 ships, including Azamara Club Cruises, Carnival Cruise Lines, Celebrity Cruises, Crystal Cruises, Cunard Cruise Line, Holland America Line, Norwegian Cruise Line, P&O Cruises, Princess Cruises, Royal Caribbean Cruises, Seabourn Cruise Lines, Silversea Cruises, Thomson 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 67 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 109 treatment centers (17 of which are operated by franchisees) across 29 states.

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.

The Company will be holding a conference call at 11:00 am (ET) on Thursday, August 1, 2013. 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, August 1, 2013 (approximately 3 hours after the call takes place) until Thursday, August 8, 2013 at approximately 4:00 pm (ET). You may reach it by dialing (203) 369-3898 for both domestic and international calls. The password is "33146".

SELECTED FINANCIAL DATA
($ and shares in thousands, except per share data)
(Unaudited)
Second Quarter Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
Revenues:
Services $ 145,000 $ 140,803 $ 296,312 $ 282,245
Products 62,653 56,678 123,355 113,769
Total revenues 207,653 197,481 419,667 396,014
Cost of Sales:
Cost of services 120,093 113,086 241,207 225,364
Cost of products 42,007 38,682 82,684 79,295
Total cost of sales 162,100 151,768 323,891 304,659
Gross profit 45,553 45,713 95,776 91,355
Operating Expenses:
Administrative 12,329 12,912 27,141 23,691
Salary and payroll taxes 18,285 15,790 37,922 32,925
Total operating expenses 30,614 28,702 65,063 56,616
Income from operations 14,939 17,011 30,713 34,739
Other Income (Expense):
Interest expense (1,137) (1,537) (2,556) (3,124)
Other income 159 92 303 338
Total other income (expense) (978) (1,445) (2,253) (2,786)
Income before provision for income taxes 13,961 15,566 28,460 31,953
Provision for income taxes 1,669 1,495 3,428 3,312
Net income $ 12,292 $ 14,071 $ 25,032 $ 28,641
Income per share:
Basic $ 0.84 $ 0.93 $ 1.71 $ 1.89
Diluted $ 0.83 $ 0.92 $ 1.69 $ 1.87
Weighted average shares outstanding:
Basic 14,635 15,061 14,641 15,124
Diluted 14,808 15,274 14,783 15,326
STATISTICS
Second Quarter Ended Six Months Ended
June 30, June 30,
2013 2012 2013 2012
Average number of ships served1: 154 154 154 151
Spa 113 112 113 111
Non-Spa 41 42 41 40
Average total number of staff on ships served: 2,675 2,651 2,681 2,648
Spa 2,302 2,261 2,310 2,273
Non-Spa 373 390 371 375
Revenue per staff per day2: $ 396 $ 408 $ 413 $ 413
Spa $ 413 $ 431 $ 434 $ 436
Non-Spa $ 288 $ 273 $ 283 $ 275
Average weekly revenues: $ 48,053 $ 49,228 $ 50,431 $ 50,720
Spa $ 58,853 $ 61,128 $ 62,099 $ 62,682
Non-Spa $ 18,332 $ 17,659 $ 18,063 $ 17,891
Average number of land-based spas served 3 68 70 68 69
Average weekly land-based spas revenues $ 28,946 $ 29,577 $ 29,654 $ 30,184
Total schools revenues $ 19,321,000 $ 19,549,000 $ 39,181,000 $ 40,679,000
Total wholesale and retail product revenues $ 33,425,000 $ 29,650,000 $ 63,434,000 $ 58,961,000
Average number of Ideal Image locations 3,4 87 65 83 63
Average weekly Ideal Image revenues 4 $ 29,325 $ 27,425 $ 30,021 $ 26,409
Ideal Image revenues $ 33,066,000 $ 23,056,000 $ 64,758,000 $ 43,029,000
Ideal Image cash revenues 5 $ 44,326,000 $ 31,974,000 $ 83,285,000 $ 61,427,000
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 and Ideal Image locations operated reflects the fact that during the period spas and centers were opened or closed and, accordingly, the number of spas and centers served during the period varied.
4 Excludes 17 centers which are operated by franchisees.
5 This represents revenues on a cash basis for the entire periods.

CONTACT: Leonard I. Fluxman, President and Chief Executive Officer (305) 358-9002, ext. 215

Source:Steiner Leisure Limited