Steiner Leisure Limited Q2 2009 Earnings Call Transcript

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2009-07-30 13:12:11.0

Tags: Revenue, Guidance, Call Transcript, Earnings, Steiner Leisure Ltd., Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. We will now begin the question-and-answer session. (Operator Instructions).

Our first question comes from Steve Wieczynski of Stifel Nicolaus. Your line is open.

Steve Wieczynski -- Stifel Nicolaus

Yes, good morning, guys. I guess I wanted just -- if you could dig a little bit more into the revised guidance in terms of the top-line reduction.

Leonard Fluxman

Even though we are seeing sort of sequentially, revenues are somewhat flattish; which, if you go back to last year, you can see it almost mirrors the same trend line. On a going forward basis, the third quarter typically is going to be stronger, but we really haven't seen sufficient strength in consumer spend in all of our segments to keep top-line guidance where it is at. We are taking up the bottom end of the EPS guidance and obviously holding it on the top end with strong cost control. I mean, to the extent that onboard spend improves or any of the other channels for revenue opportunity expansion increases, clearly we will surprise on the upside. But I think with the current trend as it is, it is prudent for us to guide at those levels.

Steve Wieczynski -- Stifel Nicolaus

Okay. So another way I guess to ask it, has July deteriorated or is that pretty much stable from what you sold in May and June?

Leonard Fluxman

No, July is actually a little better than June. But that is in line with where we are guiding based upon what we are seeing in our onboard maritime stock spend and result spend, which are two big segments.

Steve Wieczynski -- Stifel Nicolaus

Okay. And then --

Leonard Fluxman

It is not deterioration, in that spend activity.

Stephen Lazarus

Yes, I think you also have to remember that we haven't changed our revenue guidance since the beginning of the year. Obviously, our expectation at that point in time was that in the second half, we were hoping things would begin to see some sort of lift in consumer sentiment, et cetera. We haven't seen that and we have to reflect that in our revenues update.

Steve Wieczynski -- Stifel Nicolaus

Okay. And Stephen, can you do the ship breakout for the remainder of the year?

Stephen Lazarus

Yes. For Q3 of 2009, non-spa ships 25; spa 101 or 100.6 on average, total is 125. For Q4, non-spa is 23; spa is 100 for a total of 123. So on average, it is going to take the full year on spa to 25.5, 26; and non-spa to 98.

 

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