CENF Central Freight Lines

Central Freight Lines, Inc. Expects Earnings Shortfall WACO, Texas, June 16 /PRNewswire-FirstCall/ -- 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. http://www.newscom.com/cgi-bin/prnh/20040205/DACENTRALLOGO http://photoarchive.ap.org/ DATASOURCE: Central Freight Lines, Inc. CONTACT: Robert V. Fasso, Chief Executive Officer, or Jeff Hale, Chief Financial Officer, both of Central Freight Lines, Inc., +1-480-361-5295 Web site: http://www.centralfreight.com/

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