Steiner Financials
Nassau, The Bahamas
Oct. 29, 1998--Steiner Leisure Limited (Nasdaq:STNRF - news) today
announced financial results for the third quarter ended September 30, 1998.
All per share data has been adjusted retroactively, to give effect to the 3 for 2 share
splits that became effective on April 28,
1998 and October 24, 1997, respectively.
Steiner Leisure's reported revenues for the third quarter ended September 30, 1998 rose
21.7% to $26.9 million from $22.1
million during the comparable quarter in 1997. Net income for the quarter was $4.7 million
compared with $3.5 million for
the same quarter in 1997.
Earnings per share for the quarter ended September 30, 1998 was $0.28 per share compared
with $0.21 per share for the
comparable quarter in 1997. The above earnings per share data are presented on a diluted
basis.
Revenues for the nine months ended September 30, 1998 rose 19.9% to $74.2 million from
$61.9 million during the
comparable nine months in 1997. Net income for the nine months ended September 30, 1998
was $12.8 million compared
with $8.4 million for the same nine months in 1997. Net income for the nine months ended
September 30, 1998, without
giving effect to the amortization of intangibles, would have been $12.8 million compared
with $9.5 million for the same nine
months in 1997.
Earnings per share for the nine months ended September 30, 1998 was $0.75 per share
compared with $0.50 per share for the
comparable nine months in 1997. Earnings per share for the nine months ended September 30,
1998, without giving effect to
the amortization of intangibles, would have been $0.75 per share compared with $0.57 for
the comparable nine months in
1997. The above earnings per share data are presented on a diluted basis.
``We are pleased with the strong results of our third quarter,'' said Clive E. Warshaw,
Chairman and Chief Executive Officer.
We are encouraged that the increases over 1997 in revenues and net income in the first six
months of 1998 have continued
through the third quarter of 1998. These increases continue to be attributable to the
introduction of new ships with enlarged
and enhanced shipboard spa facilities served by the Company and a general increase in
productivity of the Company's
shipboard employees coupled with an increase in land based sales of the company's Elemis
product lines.``
Steiner Leisure is the leading provider of spa services and skin and hair products on
board cruise ships worldwide. In
addition, the company develops and markets premium priced, high quality personal care
products, which are sold primarily
in connection with the services the company provides. The company currently serves 97
vessels representing 25 cruise lines.
SELECTED FINANCIAL DATA
($ in thousands, except per share data)
Third Quarter ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
Revenues:
Services $15,658 $13,307 $43,855 $36,944
Products 11,285 8,826 30,358 24,929
Total Revenues 26,943 22,133 74,213 61,873
Cost of Sales:
Cost of services 12,079 10,342 33,903 28,975
Cost of products 7,615 6,045 20,538 17,009
Total cost of sales 19,694 16,387 54,441 45,984
Gross profit 7,249 5,746 19,772 15,889
Operating Expenses:
Administrative 1,211 989 3,460 2,828
Salary and payroll taxes 1,260 1,102 3,722 3,261
Amortization of
intangibles - - - 1,089
Total operating expenses 2,471 2,091 7,182 7,178
Income from operations 4,778 3,655 12,590 8,711
Other income (expense) 452 242 1,201 596
Income before provision
for income taxes 5,230 3,897 13,791 9,307
Provision for income taxes 517 419 998 891
Net income $4,713 $3,478 $12,793 $8,416
Income per share:
Basic $ 0.29 $ 0.21 $ 0.78 $ 0.52
Diluted $ 0.28 $ 0.21 $ 0.75 $ 0.50
Weighted average
shares outstanding:
Basic 16,535(1) 16,200(2) 16,445(1) 16,200(2)
Diluted 17,058(1) 16,674(2) 17,041(1) 16,710(2)
STATISTICS
Third Quarter ended Nine Months ended
September 30, September 30,
1998 1997 1998 1997
Average Number of ships
Served(3) 93 86 91 83
Average total number
of staff on ships served 847 778 825 750
Revenue per staff
per day(4) $323 $290 $309 $284
(1) Adjusted to reflect a 3 for 2 share split that became effective
on April 28, 1998.
(2) Adjusted to reflect 3 for 2 share splits that became effective
on October 24, 1997 and April 28, 1998, respectively.
(3) Average number of ships served reflects the fact that during
the year ships were in and out of service and, accordingly, the
number of ships served during the year varied.
(4) Revenue includes all sales from services and products on board
ships. Staff includes all shipboard employees. Per day refers to
each day that a cruise ship is in service.