Steiner Leisure Ltd. (STNR, Financial) filed Quarterly Report for the period ended 2009-09-30.
Steiner Leisure Limited is the leading worldwide provider of spa services and skin and hair care products on board cruise ships. The company strives to create a relaxing and therapeutic environment where customers can receive body and facial treatments and hair styling comparable in quality to the finest land-based spas and salons. Alsothe company develops and markets premium pricedhigh quality personal care products that are soldprimarily in connection with the services provide. The company operates four post-secondary schools offering degree and non-degree programs. Steiner Leisure Ltd. has a market cap of $596.84 million; its shares were traded at around $40.93 with a P/E ratio of 15.1 and P/S ratio of 1.1. Steiner Leisure Ltd. had an annual average earning growth of 12.9% over the past 10 years. GuruFocus rated Steiner Leisure Ltd. the business predictability rank of 5-star.
Spa Operations Segment Revenues. Spa Operations segment revenues decreased approximately 12.2%, or $13.6 million, to $98.0 million in the third quarter of 2009 from $111.6 million in the third quarter of 2008. Average weekly revenues for our resorts decreased 23.1% to $19,473 in the third quarter of 2009 from $25,338 in the third quarter of 2008. We had an average of 2,092 shipboard staff members in service in the third quarter of 2009, compared to an average of 2,132 shipboard staff members in service in the third quarter of 2008. Revenues per shipboard staff per day decreased by 9.1% to $440 in the third quarter of 2009 from $484 in the third quarter of 2008. Average weekly revenues for our shipboard spas decreased by 6.4% to $51,302 in the third quarter of 2009 from $54,822 in the third quarter of 2008. The decrease in revenues and the key performance indicators referenced above were primarily attributable to a softening of the economy worldwide, resulting in reduced spending by consumers at our spas.
Products Segment Revenues. Products segment revenues decreased approximately 9.4%, or $2.4 million to $23.1 million in the third quarter of 2009 from $25.5 million in the third quarter of 2008. This decrease is primarily attributable to a softening of the economy worldwide, resulting in reduced spending by consumers.
Cost of services decreased $6.5 million to $72.6 million in the third quarter of 2009 from $79.1 million in the third quarter of 2008. Cost of services as a percentage of services revenues decreased to 80.4% in the third quarter of 2009 from 82.0% in the third quarter of 2008. This decrease in cost of services as a percentage of service revenues was primarily due to the improved performance of the Schools segment. This decrease was partially offset by increases in commissions allocable to services on cruise ships covered by agreements that provide for increases in commissions in the third quarter of 2009 compared to the third quarter of 2008.
Cost of products decreased $3.7 million to $27.5 million in the third quarter of 2009 from $31.2 million in the third quarter of 2008. In the third quarter of 2009 and 2008, cost of products was positively impacted by foreign exchange gains resulting from the strengthening of the U.S. Dollar against the U.K. Pound Sterling relating to intercompany inventory purchases. Excluding these foreign exchange gains, cost of products as a percentage of products revenue increased to 70.2% in the third quarter of 2009 from 70.1% in the third quarter of 2008. This increase was primarily attributable to increases in commissions allocable to products on cruise ships covered by agreements that provide for increases in the third quarter of 2009 compared to the third quarter of 2008.
Operating expenses decreased $0.8 million to $18.4 million in the third quarter of 2009 from $19.2 million in the third quarter of 2008. Operating expenses as a percentage of revenues increased to 14.1% in the third quarter of 2009 from 13.3% in the third quarter of 2008. This increase was primarily attributable to $1.2 million of transaction costs that were incurred and primarily related to the Bliss acquisition, partially offset by implementation of increased cost controls.
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Steiner Leisure Limited is the leading worldwide provider of spa services and skin and hair care products on board cruise ships. The company strives to create a relaxing and therapeutic environment where customers can receive body and facial treatments and hair styling comparable in quality to the finest land-based spas and salons. Alsothe company develops and markets premium pricedhigh quality personal care products that are soldprimarily in connection with the services provide. The company operates four post-secondary schools offering degree and non-degree programs. Steiner Leisure Ltd. has a market cap of $596.84 million; its shares were traded at around $40.93 with a P/E ratio of 15.1 and P/S ratio of 1.1. Steiner Leisure Ltd. had an annual average earning growth of 12.9% over the past 10 years. GuruFocus rated Steiner Leisure Ltd. the business predictability rank of 5-star.
Highlight of Business Operations:
Total revenues decreased approximately 9.6%, or $13.8 million, to $130.9 million in the third quarter of 2009 from $144.7 million in the third quarter of 2008. Of this decrease, $6.1 million was attributable to a decrease in services revenues and $7.7 million was attributable to a decrease in products revenues.Spa Operations Segment Revenues. Spa Operations segment revenues decreased approximately 12.2%, or $13.6 million, to $98.0 million in the third quarter of 2009 from $111.6 million in the third quarter of 2008. Average weekly revenues for our resorts decreased 23.1% to $19,473 in the third quarter of 2009 from $25,338 in the third quarter of 2008. We had an average of 2,092 shipboard staff members in service in the third quarter of 2009, compared to an average of 2,132 shipboard staff members in service in the third quarter of 2008. Revenues per shipboard staff per day decreased by 9.1% to $440 in the third quarter of 2009 from $484 in the third quarter of 2008. Average weekly revenues for our shipboard spas decreased by 6.4% to $51,302 in the third quarter of 2009 from $54,822 in the third quarter of 2008. The decrease in revenues and the key performance indicators referenced above were primarily attributable to a softening of the economy worldwide, resulting in reduced spending by consumers at our spas.
Products Segment Revenues. Products segment revenues decreased approximately 9.4%, or $2.4 million to $23.1 million in the third quarter of 2009 from $25.5 million in the third quarter of 2008. This decrease is primarily attributable to a softening of the economy worldwide, resulting in reduced spending by consumers.
Cost of services decreased $6.5 million to $72.6 million in the third quarter of 2009 from $79.1 million in the third quarter of 2008. Cost of services as a percentage of services revenues decreased to 80.4% in the third quarter of 2009 from 82.0% in the third quarter of 2008. This decrease in cost of services as a percentage of service revenues was primarily due to the improved performance of the Schools segment. This decrease was partially offset by increases in commissions allocable to services on cruise ships covered by agreements that provide for increases in commissions in the third quarter of 2009 compared to the third quarter of 2008.
Cost of products decreased $3.7 million to $27.5 million in the third quarter of 2009 from $31.2 million in the third quarter of 2008. In the third quarter of 2009 and 2008, cost of products was positively impacted by foreign exchange gains resulting from the strengthening of the U.S. Dollar against the U.K. Pound Sterling relating to intercompany inventory purchases. Excluding these foreign exchange gains, cost of products as a percentage of products revenue increased to 70.2% in the third quarter of 2009 from 70.1% in the third quarter of 2008. This increase was primarily attributable to increases in commissions allocable to products on cruise ships covered by agreements that provide for increases in the third quarter of 2009 compared to the third quarter of 2008.
Operating expenses decreased $0.8 million to $18.4 million in the third quarter of 2009 from $19.2 million in the third quarter of 2008. Operating expenses as a percentage of revenues increased to 14.1% in the third quarter of 2009 from 13.3% in the third quarter of 2008. This increase was primarily attributable to $1.2 million of transaction costs that were incurred and primarily related to the Bliss acquisition, partially offset by implementation of increased cost controls.
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