UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Act of 1934
June 16, 2004
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Date of Report (Date of earliest event reported)
Central Freight Lines, Inc.
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(Exact name of registrant as specified in its charter)
Nevada 00050485 74-2914331
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(State or other jurisdiction (Commission (IRS Employer
of incorporation or File number) Identification
organization) Number)
5601 West Waco Drive, Waco, TX, 76710
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(Address of principal executive offices)
(Zip code)
Registrant's telephone number,
including area code:
(254) 772-2120
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements of businesses acquired.
Not applicable
(b) Pro forma financial information.
Not applicable
(c) Exhibits.
99.1 Press Release dated June 16, 2004.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On June 16, 2004, Central Freight Lines, Inc. announced its expected results of
operations for the quarter ended July 3, 2004. The public announcement was made
by means of a press release attached, the text of which is being furnished to
the U. S. Securities and Exchange Commission in Exhibit 99.1 hereto.
The information contained in this report and the exhibit hereto shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), or incorporated by reference in any
filing under the Securities Act of 1933, as amended, or the Exchange Act, except
as shall be expressly set forth by specific reference in such a filing.
The information in this report and the exhibit hereto may contain
"forward-looking statements" that are made pursuant to the safe-harbor
provisions of the Private Securities Litigation Reform Act of 1995 and otherwise
may be protected. Such statements are made based on the current beliefs and
expectations of the Company's management and are subject to significant risks
and uncertainties that could cause actual results to differ materially. Please
refer to the Company's prospectus filed on December 12, 2003, and the Company's
other filings with the Securities and Exchange Commission for information
concerning risks, uncertainties, and other factors that may affect future
results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CENTRAL FREIGHT LINES, INC.
Date: June 16, 2004 By: /s/ Jeffrey A. Hale
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Name: Jeffrey A. Hale
Title: Senior Vice President
and Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit No. Description
99.1 Press Release dated June 16, 2004.
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CENTRAL FREIGHT LINES, INC. EXPECTS EARNINGS SHORTFALL
WACO, TX - June 16, 2004 - Central Freight Lines, Inc. (NASDAQ: CENF) today
announced that it expects its financial results for the second quarter of 2004
to be substantially lower than the guidance of $.04 to $.08 per diluted share
the company had previously announced. Based on current trends, the company
expects a loss of approximately $.09 to $.14 per basic share, including an
anticipated one-time benefit of approximately $.11 per share from the reversal
of a tax accrual resulting from a favorable IRS settlement. Excluding the
one-time benefit, the expected loss would be in the range of $.20 to $.25 per
basic share.
Central's President and Chief Executive Officer, Bob Fasso, stated: "Although
revenue for the quarter is basically on track, the integration of our recent
geographic expansion and subsequent return to operating initiatives has not
developed as fast as expected. Based on information available through the end of
May, we expect labor and purchased transportation to contribute approximately
two-thirds of the expected shortfall and self insured claims to contribute most
of the balance.
"Looking ahead, with our terminal network largely in place, our management team
plans to focus primarily on implementing operational improvements and improving
freight density. We are disappointed in our current progress, but we believe our
expanded footprint is strategic to our future."
The company plans to hold a conference call following the release of second
quarter results to discuss the full quarter as well as expectations going
forward. On that call, the company may provide updated third quarter and full
year 2004 earnings guidance. Until further comment, however, all previously
announced guidance regarding future periods is retracted. The company does not
anticipate providing any earnings guidance or other comment other than the
information contained in this press release at least until the conference call
following the second quarter.
Central Freight Lines, Inc. is a non-union less-than-truckload carrier
specializing in regional overnight and second day markets. One of the 10 largest
regional LTL carriers in the nation, Central provides regional, interregional,
and expedited services, as well as value-added supply chain management,
throughout the Midwest, Southwest, Northwest and West Coast. Utilizing marketing
alliances, Central provides service solutions to the Great Lakes, Northeast,
Southeast, Mexico, and Canada.
This press release contains forward-looking statements that involve risk,
assumptions, and uncertainties that are difficult to predict. Statements that
constitute forward-looking statements are usually identified by words such as
"anticipates," "believes," "estimates," "projects," "expects," "plans,"
"intends," or similar expressions. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are based upon the current beliefs and expectations of our
management and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking statements. The
following factors, among others, could cause actual results to differ materially
from those in forward-looking statements: the risk that revenue growth may be
delayed or not occur at all; the risk that rate decreases will be required to
generate additional business; the risk that efficiency and productivity
measures, including dynamic resource planning programs, will be further delayed
or will not be successfully implemented throughout our operations; the risk that
significant geographic expansion has produced or may produce freight imbalances,
customer service issues, operational issues, or other consequences that we
cannot manage successfully on a timely basis or at all; the risk that our
insurance and claims costs will continue to exceed our expectations; and the
risks detailed from time to time in reports filed by the Company with the
Securities and Exchange Commission, including forms 8-K, 10-Q, 10-K, and our
registration statement on Form S-1.
For additional information contact: Robert V. Fasso, Chief Executive Officer, or
Jeff Hale, Chief Financial Officer, at (480) 361-5295.
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