And here's the physics behind frozen balls in layman's terms:
Cold rubber cores are generally not as flexible as warm rubber. When a cold ball is struck by a hitting surface such as a club face, the deformation that follows the collision is concentrated at the side of the ball which is struck. This concentrated deformation causes the rubber molecules to collide with each other, producing warmth rather than rebound.
In other words, if golf ball manufacturers intended for the interior cores of golf balls to be static, ie: the effect that freezing has, then they would manufacture them out of a solid core. The entire reason that the cores are made from elastic bands is to gather the energy of the strike and release it while in flight. Freezing negates a large part of this effect.
If your friend hits his frozen balls farther, it is entirely because he BELIEVES he's going to, but he'd actually do better by warming them in his pocket. As is so often the case, athletes perform better because they THINK they can. Witness the number of guys who swear they score more with play-off beards, run faster 100 meters with their lucky gold necklace, etc.
The next time you go out golfing, just remember that your friend is actually hurting his golfing game with that slick little cooler of his; then pull a hot one out of your pocket and see how far you can drive it.