Steiner Leisure Limited (Nasdaq:STNR) today announced financial results for the first quarter ended March 31, 2009.
Steiner Leisure’s revenues for the first quarter ended March 31, 2009 decreased 14.3% to $117.1 million from $136.7 million during the comparable quarter in 2008. Net income for the first quarter ended March 31, 2009, was $7.9 million compared with $9.7 million for the same quarter in 2008.
Earnings per share for the first quarter ended March 31, 2009 was $0.54 per share, compared with $0.61 per share for the comparable quarter in 2008. The earnings per share data are presented on a diluted basis.
Steiner Leisure Limited is a worldwide provider of spa services. The Company’s operations include spas and salons on 124 cruise ships and in 50 resort spas and two luxury day spas. Our cruise line and land-based resort customers include Carnival Cruise Lines, Celebrity Cruises, Crystal Cruises, Harrah’s Entertainment, Hilton Hotels, Holland America Line, InterContinental Hotels and Resorts, Kerzner International, Loews Hotels, Marriott Hotels, Nikko Hotels, Norwegian Cruise Line, Planet Hollywood, Princess Cruises, Ritz-Carlton, Royal Caribbean Cruises, Seabourn Cruise Lines, Sofitel Luxury Hotels, Starwood Hotels and Resorts and Westin Hotels and Resorts. Our Elemis Limited subsidiary manufactures its Elemis(r) brand products for use in our cruise ship and land-based spas. This top quality European line of beauty products is also distributed worldwide to exclusive hotels, salons, health clubs, department stores and destination spas. Elemis, as well as other Steiner products, including La Therapie(r), Ionithermie, and Steiner Hair Care, are available at www.timetospa.com.
Steiner Leisure also owns and operates five post secondary schools (comprised of a total of 17 campuses) located in Miami, Orlando, Pompano Beach and Sarasota, Florida; Baltimore, Maryland; Charlottesville, Virginia; York, Pennsylvania; Salt Lake City and Lindon, Utah; Las Vegas, Nevada; Tempe and Phoenix, Arizona; Westminster and Aurora, Colorado; and Groton, Newington and Westport, Connecticut. Offering degree and non-degree programs in massage therapy and, in some cases, skin care, these schools train and qualify spa professionals for health and beauty positions within the Steiner family of companies or other industry entities.
SELECTED FINANCIAL DATA
($ and shares in thousands, except per share data) (Unaudited) First Quarter Ended March 31, --------------------- 2009 2008 Revenues: -------- -------- Services $ 83,338 $ 91,163 Products 33,809 45,553 -------- -------- Total revenues 117,147 136,716 -------- -------- Cost of Sales: Cost of services 67,483 73,884 Cost of products 25,029 33,393 -------- -------- Total cost of sales 92,512 107,277 -------- -------- Gross profit 24,635 29,439 -------- -------- Operating Expenses: Administrative 6,311 8,122 Salary and payroll taxes 9,616 10,755 -------- -------- Total operating expenses 15,927 18,877 -------- -------- Income from operations 8,708 10,562 -------- -------- Other Income (Expense): Interest expense (38) (100) Other income 114 138 -------- -------- Total other income (expense) 76 38 -------- -------- Income before provision for income taxes 8,784 10,600 Provision for income taxes 841 897 -------- -------- Net income $ 7,943 $ 9,703 ======== ======== Income per share: Basic $ 0.55 $ 0.62 ======== ======== Diluted(1) $ 0.54 $ 0.61 ======== ======== Weighted average shares outstanding: Basic 14,516 15,736 Diluted 14,591 15,915 Notes: (1) Considers the impact of outstanding stock options of a subsidiary's common stock of $105,000 and $3,000 as of March 31, 2009 and 2008, respectively. STATISTICS First Quarter Ended March 31, ------------------------- 2009 2008 ----------- ----------- Average number of ships served(1): 126 128 Spa 97 96 Non-Spa 29 32 Average total number of staff on ships served: 2,085 2,008 Spa 1,871 1,772 Non-Spa 214 236 Revenue per staff per day(2): $ 391 $ 471 Spa $ 409 $ 493 Non-Spa $ 237 $ 303 Average weekly revenues: $ 45,437 $ 51,895 Spa $ 55,416 $ 64,073 Non-Spa $ 12,217 $ 15,595 Average number of land-based spas served(3) 50 54 Average weekly land-based spas revenues $ 23,718 $ 29,470 Total schools revenues $14,705,000 $11,732,000 Total wholesale and retail product revenues $13,768,000 $18,080,000 -------------------- (1) Average number of ships served reflects the fact that during the periods ships were in and out of service and, accordingly, the number of ships served during the periods 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 and closed and, accordingly, the number of spas served during the period varied.
