WACO, Texas, April 21 /PRNewswire-FirstCall/ -- On April 17, 2006, Central Freight Lines, Inc. filed a preliminary proxy statement with the Securities and Exchange Commission concerning the Company's 2006 Annual Meeting of Stockholders and the expected vote on its previously announced merger transaction with North American Truck Lines, LLC and Green Acquisition Company (the "Merger"). The agreement for the Merger provides that a company controlled by Jerry Moyes and certain related parties would become the owners of the Company, and the Company would cease to be publicly traded. The Company also announced on April 17, 2006 that it had taken possession of approximately $5.3 million in revenue equipment as the result of a transaction facilitated by Mr. Moyes. The Company's independent registered public accounting firm qualified its 2005 audit opinion due to a going concern uncertainty. The pending Merger was not allowed to be considered by the public accounting firm in its assessment of the Company. The Company expects the Merger to be completed in July of 2006 and appreciates the confidence Mr. Moyes expressed through the recent equipment transaction.
Central Freight Lines, Inc. is a non-union, less-than-truckload carrier specializing in regional overnight and second day markets in the Midwest, Southwest, West Coast, and Pacific Northwest. Utilizing marketing alliances, the Company also provides service 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 Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. Actual events may differ materially from those set forth in the forward-looking statements. We undertake no obligation to update any of these forward-looking statements.
With respect to statements regarding the consummation of the Merger, the following factors, among others, could cause actual results to differ materially from those in forward-looking statements: the risk that our business will suffer due to uncertainties caused by the announcement of the transaction; the risk that we may not be able to obtain third party and stockholder approvals necessary to consummate the transaction; as well as the risk that the transaction will not close for other reasons.
Corporate Contact:
Jeff Hale, Chief Financial Officer
(480) 361-5295
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