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Steiner Leisure Limited Announces Fourth Quarter 2013 Financial Results

February 19, 2014

NASSAU, The Bahamas, Feb. 19, 2014 (GLOBE NEWSWIRE) -- Steiner Leisure Limited (Nasdaq:STNR) today announced financial results for the fourth quarter and year ended December 31, 2013.

Steiner Leisure's revenues for the fourth quarter ended December 31, 2013 increased 4.7% to $221.0 million from $211.1 million during the comparable quarter in 2012. Net income for the fourth quarter of 2013 was $13.0 million compared with $11.8 million for the same quarter in 2012.

Earnings per share for the fourth quarter ended December 31, 2013 was $0.88 per share compared with $0.81 per share for the comparable quarter of 2012. The earnings per share data are presented on a diluted basis.

Revenues for the year ended December 31, 2013 increased 5.4% to $855.5 million from $811.5 million in 2012. Net income for the year ended December 31, 2013 was $49.4 million compared with $53.1 million in 2012.

Earnings per share for the year ended December 31, 2013 was $3.34 per share, compared with $3.53 per share 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 156 ships, including Azamara Club Cruises, Carnival Cruise Lines, 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 68 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 125 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 32 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; Arlington, Houston and Richardson, 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. 

Conference Call

The Company will be holding a conference call at 11:00 am (EST) on Thursday, February 20, 2014.  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 20th (approximately 3 hours after the call takes place) through Thursday, February 27, 2014 at approximately 5:00 pm (EST).  You may reach it by dialing (203) 369-3556 for both domestic and international calls.  The password is "33146". 

         
SELECTED FINANCIAL DATA
($ and shares in thousands, except per share data)
(Unaudited)
         
 Fourth Quarter EndedYear Ended
 December 31,December 31,
 2013201220132012
Revenues:        
 Services  $ 149,082  $ 143,660  $ 593,717  $ 570,569
 Products 71,882 67,419 261,745 240,912
 Total revenues 220,964 211,079 855,462 811,481
         
Cost of Sales:        
 Cost of services 127,310 118,271 495,249 463,634
 Cost of products 47,525 45,490 173,992 167,971
 Total cost of sales 174,835 163,761 669,241 631,605
 Gross profit 46,129 47,318 186,221 179,876
         
Operating Expenses:        
 Administrative 14,994 13,176 53,661 48,485
 Salary and payroll taxes 16,516 18,898 72,971 65,619
 Total operating expenses 31,510 32,074 126,632 114,104
 Income from operations 14,619 15,244 59,589 65,772
         
Other Income (Expense):        
 Interest expense (772) (1,534) (4,227) (6,152)
 Other income 459 347 894 823
 Total other income (expense) (313) (1,187) (3,333) (5,329)
         
Income before provision for income taxes 14,306 14,057 56,256 60,443
         
Provision for income taxes 1,352 2,222 6,817 7,341
         
Net income  $ 12,954  $ 11,835  $ 49,439  $ 53,102
         
Income per share:        
 Basic  $ 0.88  $ 0.81  $ 3.37  $ 3.57
 Diluted  $ 0.88  $ 0.81  $ 3.34  $ 3.53
         
Weighted average shares outstanding:        
 Basic 14,654 14,571 14,649 14,878
 Diluted 14,793 14,662 14,818 15,052
         
         
STATISTICS
         
 Fourth Quarter EndedYear Ended
 December 31,December 31,
 2013201220132012
         
Average number of ships served1: 152 152 154 152
Spa 115 113 114 112
Non-Spa 37 39 40 40
         
Average total number of staff on ships served:  2,757 2,656 2,707 2,654
Spa 2,401 2,302 2,338 2,281
Non-Spa 356 354 369 373
         
Revenue per staff per day2:  $ 386  $ 406  $ 407  $ 417
Spa  $ 404  $ 426  $ 426  $ 438
Non-Spa  $ 268  $ 277  $ 283  $ 284
         
Average weekly revenues:  $ 49,018  $ 49,886  $ 49,953  $ 50,821
Spa  $ 59,128  $ 60,789  $ 61,089  $ 62,471
Non-Spa  $ 17,915  $ 17,886  $ 18,218  $ 18,384
         
Average number of land-based spas operated3 67 68 67 69
         
Average weekly land-based spas revenues  $ 27,864  $ 28,821  $ 28,666  $ 29,175
         
Total schools revenues  $ 20,635,000  $ 18,751,000  $ 80,018,000  $ 78,365,000
         
Total wholesale and retail product revenues  $ 41,692,000  $ 40,067,000  $ 141,006,000  $ 129,890,000
         
Average number of Ideal Image locations3, 4 103 78 91 68
         
Average weekly Ideal Image revenues4  $ 26,805  $ 26,577  $ 27,897  $ 26,145
         
Ideal Image revenues  $ 36,213,000  $ 27,194,000  $ 132,536,000  $ 93,591,000
         
Ideal Image cash revenues5  $ 42,867,000  $ 36,637,000  $ 163,692,000  $ 128,587,000
         
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 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.
Excludes 17 centers which are operated by franchisees.
This represents revenues on a cash basis for the entire period. 

CONTACT: Leonard I. Fluxman, President and Chief Executive Officer (305) 358-9002, ext. 1215



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Source: Steiner Leisure Limited


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