Steiner Leisure Limited has been advised by Celebrity Cruises that the Company's agreement to serve Celebrity's vessels would not be renewed after its expiration on December 31, 2013.
The Company is negotiating a transition plan as to the turnover of the ships to the new vendor. We currently estimate that the impact of the termination of this agreement on the fully diluted earnings per share of the Company for 2014 should not be a reduction of greater than $0.24 per share. This estimate is subject to finalization of the transition plan.
As previously disclosed, Steiner Leisure currently has $93.3 million available under its share repurchase plan. Once our trading window reopens, currently scheduled for February 25, 2014, repurchases will continue to be made in the open market or in privately negotiated transactions, subject to regulatory considerations, market conditions, and the Company's debt agreement.
Leonard Fluxman, President and Chief Executive Officer of Steiner Leisure, said, "We, of course, are disappointed with Celebrity's decision, particularly in view of our revenues being at historical highs on Celebrity's ships. We believe that the terms we proposed for renewal contained compelling economics and it also contained a unique brand at sea. It is our understanding that Celebrity's decision was made purely from a marketing perspective. We hope that we will have the opportunity to serve more Celebrity ships at some time in the future."