<PAGE>
 
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-Q
                                        

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934 
    For the quarterly period ended:  April 4, 1999
 
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
    For the transition period from              to
 
    Commission File Number: 1-11012
 
                         Glacier Water Services, Inc.
                   -----------------------------------------
            (Exact Name of Registrant as Specified in Its Charter)
 
             Delaware                                   33-0493559
-----------------------------------------   ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)             
 
2261 Cosmos Court, Carlsbad, California                92009
-----------------------------------------   ------------------------------------
(Address of principal executive offices)            (Zip Code)
 
                                (760)  930-2420
                   -----------------------------------------
             (Registrant's telephone number, including area code)

  Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.  YES [X]     NO [ ]

  Indicate the number of shares outstanding of each of issuer's class of common
stock as of the latest practicable date: 2,849,769 shares of common stock, $.01
par value, outstanding at May 2, 1999.
<PAGE>
 
                        PART 1 - FINANCIAL INFORMATION
                         ITEM 1 - FINANCIAL STATEMENTS
                                        
                         GLACIER WATER SERVICES, INC.
                          CONSOLIDATED BALANCE SHEETS
                       (in thousands, except share data)
<TABLE>
<CAPTION>
 
                                                                                    April 4,           January 3,
                                                                                      1999                1999*
                                                                                 ---------------      ---------------
                                                                                    (unaudited)
<S>                                                                               <C>                  <C>
ASSETS                                                                          
------
Current assets:
   Cash and cash equivalents...............................................         $  1,539           $    109
   Investments, available for sale.........................................           22,538             31,037
   Accounts receivable.....................................................            1,017              1,348
   Inventories.............................................................            2,842              2,890
   Prepaid expenses and other..............................................            1,416              1,388
                                                                                    --------           --------
      Total current assets.................................................           29,352             36,772
                                                                                                       
Property and equipment, net of accumulated depreciation....................           55,930             54,939
Other assets...............................................................           12,667              8,804
                                                                                    --------           --------
Total assets...............................................................         $ 97,949           $100,515
                                                                                    ========           ========
                                                                                                       
LIABILITIES AND STOCKHOLDERS' EQUITY                                                                   
------------------------------------
Current liabilities:                                                                                   
   Accounts payable........................................................         $  1,019           $    656
   Accrued commissions ....................................................            1,596              1,469
   Accrued liabilities.....................................................            1,896              2,146
                                                                                    --------           --------
       Total current liabilities..........................................             4,511              4,271
Long-term debt.............................................................           87,125             85,000
Deferred income taxes......................................................              668              1,960
                                                                                                       
                                                                                                       
Stockholders' equity:                                                                                  
   Preferred stock, $.01 par value; 100,000 shares authorized,                                            
      no shares issued or outstanding.........................................             -                  -
   Common stock, $.01 par value;                                                                       
     10,000,000 shares authorized, 2,851,669 and                                                         
     2,959,975 shares issued and outstanding, respectively...................             34                 34
   Additional paid-in capital..............................................           15,963             15,963
   Retained earnings.......................................................            6,797              9,389
   Treasury stock, at cost, 568,656 and 460,350 shares, respectively.......          (14,193)           (11,549)
   Cumulative unrealized loss on investments...............................           (2,956)            (4,553)
                                                                                    --------           --------
     Total stockholders' equity...........................................             5,645              9,284
                                                                                    --------           --------
Total liabilities and stockholders' equity.................................           97,949           $100,515
                                                                                    ========           ========
 
</TABLE>
  * Amounts derived from audited information

                             See accompanying notes

                                       1
<PAGE>
 
                         GLACIER WATER SERVICES, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (in thousands, except shares and per share data)
                                  (unaudited)
                                        
<TABLE>
<CAPTION>
 
 
                                                                                          Three Months Ended      
                                                                                        April 4,           April 5,
                                                                                          1999               1998
                                                                                       -----------       -----------
<S>                                                                                    <C>               <C>
Revenues.........................................................................       $   12,623        $   12,814
 
Operating costs and expenses:
   Operating expenses............................................................            8,236             8,411
   Selling, general and administrative expenses..................................            2,189             1,941
   Depreciation and amortization.................................................            2,599             2,437
                                                                                        ----------        ----------
       Total operating costs and expenses........................................           13,024            12,789
                                                                                        ----------        ----------
 
Income (loss) from operations....................................................             (401)               25
 
Other (income) expense:
   Interest  expense.............................................................            1,980             1,636
   Investment (income)  loss.....................................................            1,503              (873)
                                                                                        ----------        ----------
Total other expense..............................................................            3,483               763
                                                                                        ----------        ----------
 
Loss before income taxes.........................................................           (3,884)             (738)
Income tax benefit...............................................................           (1,292)             (252)
                                                                                        ----------        ----------
Net loss.........................................................................       $   (2,592)       $     (486)
                                                                                        ==========        ==========
 
Basic and diluted net loss per share.............................................        $    (.87)       $     (.15)
                                                                                         =========        ========== 
                                                                                                                     
Weighted average shares outstanding..............................................        2,987,879         3,211,988 
                                                                                        ==========        ========== 
</TABLE>
                                                                                

                          Glacier Water Services, Inc.
             Consolidated Statements of Comprehensive Income (Loss)
                                 (in thousands)
<TABLE>
<CAPTION>
                                                                                          Three Months Ended
                                                                                    -------------------------------
                                                                                       April 4,         April 5,
                                                                                         1999             1998
                                                                                    --------------   --------------
<S>                                                                                 <C>              <C>
Net loss                                                                             $(2,592)           $(486)
                                                                                     -------            -----
Unrealized gain (loss) on securities, net of tax:                                    
    Unrealized holding gain (loss) arising during the period                             389             (182)
     Less: reclassification adjustment for losses (gains)                            
     included in net gain (loss)                                                       1,986             (276)
                                                                                     -------            -----
Net unrealized gain (loss)                                                            (1,597)              94
                                                                                     -------            -----
Comprehensive loss                                                                   $(4,189)           $(392)
                                                                                     =======            =====
</TABLE>
                                                                                



                             See accompanying notes

                                       2
<PAGE>
 
                          GLACIER WATER SERVICES, INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    (in thousands)
                                    (unaudited)
<TABLE>  
<CAPTION> 
                                                                                        Three Months Ended
                                                                                -------------------------------
                                                                                    April 4,          April 5,
                                                                                      1999             1998
                                                                                  -------------   --------------
<S>                                                                               <C>             <C>
Cash flows from operating activities:
     Net loss                                                                          $(2,592)        $   (486)
     Adjustments to reconcile net income (loss) to net cash provided by
        Operating activities:
          Depreciation and amortization                                                  2,599            2,437
          Loss on disposal of assets                                                        --                9
          Realized loss (gain) on sales of investments                                   1,986             (276)
     Change in operating assets and liabilities:
          Accounts receivable                                                              331             (461)
          Inventories                                                                       48             (241)
          Prepaid expenses and other                                                       (28)            (652)
          Payments for prepaid marketing incentives                                     (4,304)            (119)
          Other assets                                                                      (5)            (410)
          Deferred income taxes                                                         (1,292)            (252)
          Accounts payable, accrued liabilities and accrued commissions                    240            1,261
                                                                                       -------         --------
                    Total adjustments                                                     (425)           1,296
                                                                                       -------         --------
                    Net cash provided by (used in) operating activities                 (3,017)             810
                                                                                       -------         --------
 
Cash flows from investing activities:
     Net investment in vending equipment                                                (2,990)          (4,592)
     Purchase of property and equipment                                                    (33)             (95)
     Purchase of investments                                                            (7,282)         (39,686)
     Proceeds from sale and maturities of investments                                   15,271            7,180
                                                                                       -------         --------
                    Net cash provided by (used in) investing activities                  4,966          (37,193)
                                                                                       -------         --------
 
Cash flows from financing activities:
    Issuance of long term debt, net of fees                                                 --           81,600
    Proceeds from long-term borrowings                                                   9,175              950
    Principal payments on long debt                                                     (7,050)         (29,682)
    Proceeds from issuance of stock                                                         --              117
    Purchase of treasury stock                                                          (2,644)          (1,040)
                                                                                       -------         --------
                   Net cash provided by (used in) financing activities                    (519)          51,945
                                                                                       -------         --------
 
Net increase in cash                                                                     1,430           15,562
Cash, beginning of period                                                                  109               13
                                                                                       -------         --------
Cash, end of period                                                                    $ 1,539         $ 15,575
                                                                                       =======         ========
</TABLE>
                             See accompanying notes

                                       3
<PAGE>
 
                          GLACIER WATER SERVICES, INC.
                SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
                                 (in thousands)
<TABLE>
<CAPTION>
 
                                                                               Three Months Ended
                                                                             ------------------------
                                                                              April 4,      April 5,
                                                                                1999          1998
                                                                              --------       --------
<S>                                                                            <C>           <C>
Cash paid for interest                                                          $1,966         $1,622
                                                                                ======         ======
Cash paid for income taxes                                                      $   --         $    4
                                                                                ======         ======
</TABLE>
                                                                                


                             See accompanying notes

                                       4
<PAGE>
 
                         GLACIER WATER SERVICES, INC.
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 April 4, 1999
                                  (unaudited)

1.   Summary of Significant Accounting Policies

     Basis of Presentation
 
     In the opinion of the Company's management, the accompanying consolidated
financial statements reflect all adjustments (consisting only of normal
recurring accruals) necessary for a fair presentation of the consolidated
financial position of the Company as of April 4, 1999 and the consolidated
results of its operations and its cash flows for the three-month periods ended
April 4, 1999 and April 5, 1998. Although the Company believes that the
disclosures in these financial statements are adequate to make the information
presented not misleading, certain information, including footnote information,
normally included in financial statements prepared in accordance with generally
accepted accounting principles has been condensed or omitted pursuant to the
rules and regulations of the Securities and Exchange Commission.  Results of
operations for the period ended April 4, 1999 are not necessarily indicative of
results to be expected for the full year.  For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-K for the year ended January 3, 1999.

Reclassification

     Certain prior year amounts have been reclassified to conform to the current
presentation.

2.  Investments

     Investments are accounted for in accordance with FASB Statement No. 115,
Accounting for Certain Investments in Debt and Equity Securities, which requires
that the Company determine the appropriate classification of investments at the
time of purchase and reevaluate such designation as of each balance sheet date.
At April 4, 1999 and January 3, 1999, the Company considered all investments as
available for use in its current operations, and therefore classified them as
short-term, available-for-sale investments.  Available-for-sale investments are
stated at fair value, with unrealized gains and losses, if any, net of tax,
reported as a separate component of stockholders' equity.  Realized gains or
losses from the sale of investments, write-downs associated with investments
deemed to be permanently impaired, interest income and dividends are included in
investment income or loss in the accompanying statements of operations. The cost
of securities sold is based on the specific identification method.

     At April 4, 1999, short-term investments consisted of the following (in
thousands):
<TABLE>
<CAPTION>
                                                       Gross           Gross        Estimated
                                      Amortized      Unrealized      Unrealized        Fair
                                         Cost           Gains          Losses          Value
                                        -----           -----         -------       ---------
<S>                                <C>             <C>            <C>              <C>
Corporate securities                   $11,031           $206         $(1,708)        $ 9,529
Convertible securities                   2,103             --             (38)          2,065
Mortgage backed securities               1,562             --            (638)            924
                                       -------           ----         -------         -------
Total debt securities                   14,696            206          (2,384)         12,518
Equity securities                       10,798            526          (1,304)         10,020
                                       -------           ----         -------         -------
Total investments available            $25,494           $732         $(3,688)        $22,538
 for sale                              =======           ====         =======         =======
</TABLE>

                                       5
<PAGE>
 
                         GLACIER WATER SERVICES, INC.
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 April 4, 1999
                                  (unaudited)

     The Company's primary market risk exposures are interest rate risk and
equity price risk. At April 4, 1999, the Company held a portfolio of marketable
securities with an estimated fair value equal to $22,538,000.  Of that amount,
the estimated fair value of the Company's total debt investments available for
sale was $12,518,000, including $2,065,000 in convertible debt securities, and
the estimated fair value of the Company's total equity securities available for
sale was $10,020,000, including $7,858,000 in convertible preferred securities.
The Company's exposure to interest rate risk relates primarily to the
opportunity cost of fixed rate obligations.  The Company's exposure to equity
price risk relates primarily to the risk that the market price of a security may
fluctuate or drop over time.

  Proceeds from sales or maturities of marketable securities for the quarter
ended April 4, 1999 were $15,271,000.  Gross realized gains on such sales for
the quarter ended April 4, 1999 were $194,000.  Gross realized losses for the
quarter ended April 4, 1999 were $2,180,000.  Corporate securities have maturity
dates from January 2001 to March 2006.  Corporate debt securities have maturity
dates from February 2001 to May 2008.  Mortgage backed securities have maturity
dates from April 2017 to December 2021. The Company's investment guidelines
include investing approximately $10.2 million of its portfolio with a
professional asset management firm whose investment approach consists of
investing in hedged transactions.  Each position in the portfolio is created by
purchasing a convertible debt or equity security and selling short the
underlying common stock against it. The remainder of the Company's investment
portfolio is invested by Kayne Anderson Investment Management, primarily in
fixed rate corporate bonds and mortgage backed securities. The gross unrealized
gains and losses reflected in the above table are primarily the result of these
investment approaches.

  As of April 4, 1999, one of the Company's corporate debt security investments
has declined in value by approximately $2.2 million. The issuer of this security
is experiencing financial difficulty and is in bankruptcy proceedings.
Additionally, the debt instrument is currently in default. As a result of the
Company's most recent review of this security, the Company believes that it is
permanently impaired and as a result, has taken a $1.6 million write-down on
this investment. This amount is included in the investment losses for the
quarter ended April 4, 1999.

At January 3, 1999, investments available for sale consisted of the following
  (in thousands):
<TABLE>
<CAPTION>
 
                                                      Gross           Gross        Estimated
                                     Amortized      Unrealized      Unrealized         Fair
                                        Cost           Gains          Losses          Value
                                       -----           -----          ------          -----
<S>                                 <C>              <C>            <C>              <C>
Corporate securities                   $14,424           $159         $(2,722)        $11,861
Convertible securities                   4,259            197             (13)          4,443
Mortgage backed securities               2,337              -          (1,139)          1,198
                                       -------   ------------         -------         -------
Total debt securities                   21,020            356          (3,874)         17,502
 
Equity securities                       14,570             37          (1,072)         13,535
                                        ------   ------------         -------         -------
Total investments available            
                                       $35,590           $393         $(4,946)        $31,037
   for sale                            =======   ============         =======         =======
                                               
</TABLE>
                                                                                

 

                                       6
<PAGE>

                         GLACIER WATER SERVICES, INC.
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 April 4, 1999

                                  (unaudited)


3.   New Credit Facility

  On January 27, 1999, the Company entered into a new $8.0 million unsecured
credit facility with Tokai Bank of California with a maturity date of May 1,
2000.  The credit facility requires quarterly interest payments at the Bank's
prime rate (7.75% per annum at January 27, 1999) or LIBOR plus 1.60% (6.63% per
annum at January 27, 1999). As of April 4, 1999, the Company had approximately
$5.8 million of funds available under the agreement.  Outstanding amounts under
this credit facility are included in long term debt as of April 4, 1999.

                                       7
<PAGE>
 
     ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                             RESULTS OF OPERATIONS
                                        
                                        
Results of Operations
---------------------

Overview
--------

     During the fourth quarter of 1998, the Company made a decision to remove
approximately 1,450 machines at under-performing locations. These machines were
primarily located at small independent retailers and the Company intends to
relocate these machines to large supermarket and drug store chains where the
Company expects that better performance will be achieved. As of April 4, 1999,
substantially all of these machines have been removed from operations and the
Company believes that they will be re-deployed over the balance of the year. As
a result of the removal of these machines, the Company ended the quarter with
12,775 machines in operation, compared to 12,857 machines in operation at April
5, 1998.

Revenues
--------

     For the quarter ended April 4, 1999, revenues decreased 1.5% to
$12,623,000, from $12,814,000 for the first quarter a year ago. The decrease in
revenues was due to the reduction of machines mentioned above and due to the
continuing negative impact on revenues from adverse media attention last fall
surrounding a study conducted by Los Angeles County which questioned the quality
of drinking water dispensed from water vending machines.

Costs and Expenses
------------------

     Operating expenses for the quarter ended April 4, 1999 were $8,236,000, or
65.2% of revenues, compared to $8,411,000, or 65.6% of revenues in the same
period last year.  The total dollar decrease in cost is associated with having
fewer machines in operation throughout the first quarter of 1999.

     Selling, general and administrative ("SG&A") expenses for the quarter ended
April 4, 1999 increased to $2,189,000, or 17.3% of revenues, compared to
$1,941,000, or 15.1% of revenues in the same period last year.  The increase in
total dollars is due primarily to increased legal expenses incurred in
connection with patent litigation.

     Depreciation and amortization expense was $2,599,000, for the quarter ended
April 4, 1999, compared to $2,437,000 in the same period last year. The increase
in total dollars was due to the addition of new machines installed last year.

     Interest expense increased to $1,980,000, for the quarter ended April 4,
1999, compared to $1,636,000 in the same period last year. The increase was
associated with the issuance of the $85 million of Trust Preferred Stock in the
first quarter of 1998. The Company had $1,503,000 of investment losses in the
quarter ended April 4, 1999, as a result of a write-down of $1.6 million on a
debt security deemed to be permanently impaired, compared to investment income
of $873,000 in the same period last year.

     As a result of the foregoing, the net loss for the quarter ended April 5,
1998 was $2,592,000, or $.87 per share, compared with a net loss of $486,000, or
$.15 per share for the same period last year.

                                       8
<PAGE>
 
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                           OF OPERATIONS - (Continued)
                                        
Liquidity and Capital Resources
-------------------------------

     On January 27, 1998, the Company, through a newly created business trust
and wholly-owned subsidiary, completed a public offering of 3.4 million of
9.0625% Cumulative Trust Preferred Securities with a liquidation amount of $25
per security (the "Trust Preferred Securities"). The proceeds from the sale of
the Trust Preferred Securities were used to purchase an equivalent amount of 9
1/16% Junior Subordinated Debentures of the Company (the "Debentures").  With
the net proceeds of $81.6 million from the sale of the Debentures, the Company
repaid its outstanding bank debt of approximately $28.7 million, terminated its
bank credit agreement and invested the remainder in cash equivalents and short-
term marketable securities.  These investments, as well as cash flows from
operations, are the Company's primary sources of liquidity.  In addition, the
Company has the capacity to borrow up to $5 million from a national brokerage
firm against its investments in marketable securities, at an interest rate of
6.5% per annum.

     On January 27, 1999, the Company entered into a new $8.0 million unsecured
credit facility with Tokai Bank of California with a maturity date of May 1,
2000.  The credit facility requires quarterly interest payments at the Bank's
prime rate (7.75% per annum at January 27, 1999) or LIBOR plus 1.60% (6.63% per
annum at January 27, 1999). As of April 4, 1999, the Company had approximately
$5.8 million of funds available under the agreement.  Outstanding amounts under
this credit facility are included in long term debt as of April 4, 1999.

     At April 4, 1999, the Company had cash and cash equivalents and marketable
securities of $24.1 million, and working capital of $24.8 million.  For the
quarter ended April 4, 1999, net cash used by operations totaled $3.0 million.
Net cash provided by financing and investing activities was $4.4 million for the
quarter ended April 4, 1999.

Quantitative and Qualitative Disclosures About Market Risk
----------------------------------------------------------

     The Company's primary market risk exposures are interest rate risk and
equity price risk. At April 4, 1999, the Company held a portfolio of marketable
securities with an estimated fair value equal to $22,538,000.  Of that amount,
the estimated fair value of the Company's total debt investments available for
sale was $12,518,000, including $2,065,000 in convertible debt securities, and
the estimated fair value of the Company's total equity securities available for
sale was $10,020,000, including $7,858,000 in convertible preferred securities.
The Company's exposure to interest rate risk relates primarily to the
opportunity cost of fixed rate obligations.  The Company's exposure to equity
price risk relates primarily to the risk that the market price of a security may
fluctuate or drop over time.

     The Company's investment guidelines include investing approximately $15.5
million of its portfolio with a professional asset management firm whose
investment approach consists of investing in hedged transactions. Each hedged
position in the Company's portfolio is created by purchasing a convertible debt
or equity security and selling short the underlying common stock against it.
The purpose of entering into these hedged transactions is to minimize the impact
of interest rate fluctuations and equity price risk on the Company's invested
portfolio. The remainder of the Company's investment portfolio is invested by
Kayne Anderson Investment Management, primarily in fixed rate corporate bonds
and mortgage backed securities.

 

                                       9
<PAGE>
 
  The table below presents principal cash flows and related weighted average
interest rates by expected maturity dates for the Company's derivative
investments:

<TABLE>
<CAPTION> 
                                                             Cash Flow (in thousands)
                             -----------------------------------------------------------------------------------------

                              1999          2000          2001         2002          2003    Thereafter       Total
                             -----         -----         -----        -----         -----    -----------    ----------
<S>                      <C>          <C>           <C>           <C>          <C>           <C>            <C>
Security
--------
 
Convertible Debt
    Principal                $   0         $   0         $ 500        $   0         $ 500         $1,750        $2,250
    Interest                    87           124           124           94            94            104           629
    Weighted average
       interest rate           5.6%          5.6%          5.6%         5.6%          5.4%           5.0%
 
Convertible Preferred
 Stock
    Principal                $   0         $   0         $ 262        $ 398         $   0         $    0        $  660
    Interest                   727           881           877          847           841             (2)           (2)
    Weighted average
       interest rate           7.9%         7.2 %          7.2%         7.2%          7.2%           7.2%
</TABLE>

(1)  Dividends paid-in-kind have been included (based on their cash value) in
the calculations for the convertible  preferred stock.

(2)  Beyond 2003, interest payments on convertible preferred stock generally
continue so long as the Company continues to hold the security.
                                        
Statements in this report that are not purely historical are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995.  These forward-looking statements with respect to the financial condition
and results of operations of the Company involve risks and uncertainties
including, but not limited to, trade relations, dependence on certain locations
and competition.  Further information on potential factors which could affect
the financial condition and results of operations of the Company are included in
the filings of the Company with the Securities and Exchange Commission,
including, but not limited to, the Company's Registration Statement on Form  S-
2, as amended, (File No. 333-40335) and its Annual Report on Form 10-K for the
year ended January 3, 1999.

                                       10
<PAGE>
 
                          PART II - OTHER INFORMATION

   Item 1.                      Legal Proceedings

           On October 28, 1998, Pure Fill Corporation commenced an action
       against the Company in the California Superior Court for the County of
       Stanislaus, known as Pure Fill Corporation v. Glacier Water Services,
       Inc., Case No. 182981, alleging causes of action against the Company for
       antitrust, violation of the California Unfair Practices Act, unfair
       competition, and tortious interference with prospective business
       advantage. Plaintiff alleges, among other things, that the Company sold
       vended water below its cost, provided secret rebates, payments and
       commissions, engaged in discriminatory pricing practices and conspired
       with various supermarket retailers to monopolize the market in violation
       of state antitrust and unfair competition laws. Plaintiff seeks
       unspecified damages and injunctive relief. On April 23, 1999 after the
       Court had sustained Glacier's demurrer to Pure Fill's First Amended
       Complaint, Pure Fill filed its Second Amended Complaint. To date,
       discovery has not been completed, and no trial date has been set. The
       Company denies all of the allegations and intends vigorously to protect
       its rights in this lawsuit. However, there can be no assurance that the
       lawsuit will be resolved in favor of the Company.

          On October 13, 1998, Aqua Natural Purefect Water, Inc. ("Aqua
       Natural") commenced an action against the Company, and others, in Harris
       County, Texas, known as Aqua Natural Purefect Water, Inc. v. The Kroger
       Company et al., Case No. 98-48829. On January 19, 1999, Aqua Natural
       filed its First Amended Complaint alleging civil conspiracy to defraud,
       conversion, tortious interference with existing and prospective
       contracts, intentional infliction of emotional distress and breach of
       contract. Aqua Natural alleges that the Company interfered with an
       existing contract and business relationship between Kroger and Aqua
       Natural and that during the changeover of water vending systems, the
       Company and its agents damaged Aqua Natural's equipment. Aqua Natural
       seeks unspecified damages and attorney's fees. On or about May 7, 1999,
       the Company was served with the First Amended Complaint. The Company
       denies all of the allegations and intends to vigorously protect its
       rights in this lawsuit. However, there can be no assurance that the
       lawsuit will be resolved in favor of the Company.


Item 6.                Exhibits and Reports on Form 8-K

        a. Exhibits
           --------

           Exhibit 27. 1  Financial Data Schedule.

        b. Reports on Form 8-K
           -------------------

           None

                                    EXHIBITS
                                    --------

        27.1  Financial Data Schedule

                                       11
<PAGE>
 
                                 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 thereunto duly authorized.

 

                                GLACIER WATER SERVICES, INC.


Date:  May 19, 1999            By: /s/Jerry A. Gordon
       ------------                -----------------------------------------
                                  Jerry A. Gordon
                                  President and Chief Operating Officer
 


Date: May 19, 1999             By: /s/W. David Walters
      ------------                 -----------------------------------------
                                  W. David Walters
                                  Chief Financial Officer and
                                  Vice President, Finance
 

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