Central Freight Lines Prepares IPO

Regional less-than-truckload carrier Central Freight Lines of Waco, Texas, filed a registration statement with the Securities and Exchange Commission to sell 5 million shares of stock to the public.

The May 6 filing is the first step towards re-establishing the freight carrier as a publicly owned company.

Founded in 1925, Central was the largest intrastate motor carrier in Texas when it was acquired by Roadway Services (later renamed Caliber System) in 1992. After a failed attempt to merge Central with three other regional trucking companies, the company was spun off in 1997 to a senior management group backed by Jerry Moyes, chairman of Phoenix-based Swift Transportation Co.

Moyes serves as chairman of Central and will sell 1 million shares as part of the proposed stock offering. He will retain 8.7 million shares, or roughly 58% of the outstanding stock if the sale goes through.

Central's top management includes President Joe E. Hall, Chief Finance Officer Douglas E. Quicksall and Senior Vice President of Sales and Marketing Thomas K. Morehouse.

Former Roadway Chairman Joseph M. Clapp has been invited to serve on Central's board of directors.

roceeds of the stock offering will be used to repay debt, purchase new tractors and trailers and for general corporate purposes, according to the SEC filing.

Central earned $9.6 million on revenue of $259.9 million and posted an operating ratio of 92.9% in 1998.

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