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LIGHTHOUSE TRAVEL
800-719-9917 or 805-566-3905
http://www.lighthousetravel.com
Steiner Leisure Limited Announces First Quarter 2006 Financial Results
NASSAU, The Bahamas April 26, 2006
Steiner Leisure Limited (NASDAQ:STNR - News) today announced financial
results for the first quarter ended March 31, 2006.
Financial Results
Steiner Leisure's revenues for the first quarter ended March 31, 2006
rose 10.3% to $104.5 million from $94.7 million during the comparable
quarter in 2005. Income from continuing operations, before
discontinued operations for the first quarter, was $10.6 million
compared with $9.1 million for the same quarter in 2005. The income
from continuing operations for the first quarter of 2006 includes
$557,000 of stock based compensation expense related to the adoption
of SFAS No. 123® effective January 1, 2006 under the modified
prospective method and $440,000 of insurance proceeds received related
to the Tsunami that hit various Asian regions in December 2004 and
damaged most of our operations in the Maldive Islands.
Earnings per share before discontinued operations for the first
quarter ended March 31, 2006 was $0.59 per share, compared with $0.48
per share for the comparable quarter in 2005. The earnings per share
data are presented on a diluted basis.
Leonard I. Fluxman, President and Chief Executive Officer of Steiner
Leisure, commented, "We are very pleased with our first quarter
results. The momentum from 2005 has continued into the first quarter
of 2006 as most of the key elements of our businesses performed very
well."
Corporate Overview
Steiner Leisure Limited is a worldwide provider of spa services. The
Company's operations include spas and salons on 124 cruise ships, and
in 57 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® 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®, as well as other Steiner products,
including La Therapie®, Ionithermie, and Steiner Hair Care, are
available at http://www.timetospa.com.
Steiner Leisure owns and operates four post secondary schools
(comprised of a total of 14 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; and
Westminster and Aurora, Colorado. 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.
Conference Call
The Company will be holding a conference call at 11:00 am (EST) on
Thursday, April 27, 2006. 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
706-679-5917 for domestic and international calls approximately ten
minutes before the scheduled time. This call is available for replay
from Thursday, April 27, 2006 (approximately 3 hours after the call
takes place) until Tuesday, May 2, 2006 at 5:00 pm. You may reach it
by dialing 706-645-9291 for both domestic and international calls. The
conference ID # is 7855768.
SELECTED FINANCIAL DATA
($ in thousands, except per share data)
(Unaudited)
First Quarter Ended
March 31,
---------------------
2006 2005
---------- ----------
Revenues:
Services $ 70,946 $ 65,326
Products 33,603 29,418
---------- ----------
Total revenues 104,549 94,744
---------- ----------
Cost of Sales:
Cost of services 56,503 51,292
Cost of products 24,377 22,355
---------- ----------
Total cost of sales 80,880 73,647
---------- ----------
Gross profit 23,669 21,097
---------- ----------
Operating Expenses:
Administrative 5,795 5,630
Salary and payroll taxes 7,355 5,695
---------- ----------
Total operating expenses 13,150 11,325
---------- ----------
Income from continuing operations 10,519 9,772
---------- ----------
Other Income (Expense):
Interest expense (12) (51)
Other income 925 148
---------- ----------
Total other income (expense) 913 97
---------- ----------
Income from continuing operations before
provision for income taxes and discontinued
operations 11,432 9,869
Provision for income taxes 851 773
---------- ----------
Income from continuing operations before
discontinued operations 10,581 9,096
Income (loss) from discontinued operations, net
of taxes 225 (14)
---------- ----------
Net income $ 10,806 $ 9,082
========== ==========
Income per share-Basic:
Income before discontinued operations $ 0.61 $ 0.51
Income from discontinued operations 0.01 --
---------- ----------
$ 0.62 $ 0.51
========== ==========
Income per share-Diluted:
Income before discontinued operations $ 0.59 $ 0.48
Income from discontinued operations 0.01 --
---------- ----------
$ 0.60 $ 0.48
========== ==========
Weighted average shares outstanding:
Basic 17,370 17,999
Diluted 17,959 18,886
STATISTICS
First Quarter Ended
March 31,
---------------------
2006 2005
---------- ----------
Average number of ships served(1): 116 115
Spa 83 82
Non-Spa 33 33
Average total number of staff on ships served: 1,695 1,617
Spa 1,465 1,382
Non-Spa 230 235
Revenue per staff per day(2): $ 460 $ 447
Spa $ 483 $ 475
Non-Spa $ 311 $ 287
Average weekly revenues: $ 47,128 $ 43,878
Spa $ 59,957 $ 56,255
Non-Spa $ 15,120 $ 13,973
Average number of land based spas served(3) 55 47
Average weekly land based spas revenues $ 27,869 $ 28,404
Total schools revenues(4) $5,108,000 $4,426,000
Total wholesale and retail product revenues $9,559,000 $7,924,000
(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.
(4) Includes $169,000 and $217,000 for the three months ended
March 31, 2006 and 2005, respectively, relating to the Steiner
training school near London, England.
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