UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, DC 20549-1004
                      ------------------------------------

                                    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 June 30, 1997

(  )     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934


                         Commission File Number 0-27208

                       Simon Transportation Services Inc.
             (Exact name of registrant as specified in its charter)



            Nevada                                      87-0545608
(State or other jurisdiction of           I.R.S. employer identification number)
 incorporation or organization)


                              5175 West 2100 South
                          West Valley City, Utah 84120
                                 (801) 924-7000
               (Address, including zip code, and telephone number,
                      including area code, of registrant's
                           principal executive office)


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 the  filing
requirements for at least the past 90 days.


                                    YES X NO


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date (June 30, 1997).

             Class A Common Stock, $.01 par value: 5,328,497 shares
              Class B Common Stock, $.01 par value: 952,161 shares



<PAGE>



                                    SIMON TRANSPORTATION SERVICES INC.
                                            TABLE OF CONTENTS

                                                  PART I

                                          FINANCIAL INFORMATION

<TABLE>
<CAPTION>
<S>                                                                                              <C>

                                                                                                  PAGE
                                                                                                 NUMBER

Item 1.      Financial Statements:

             Condensed consolidated statements of financial position as of
                      June 30, 1997 and September 30, 1996                                         3

             Condensed consolidated statements of earnings for the three months and nine
                      months ended June 30, 1997 and 1996                                          4

             Condensed consolidated statements of cash flows for the nine months ended June
                      30, 1997 and 1996                                                            5

             Notes to condensed consolidated financial statements                                  6

Item 2.      Management's discussion and analysis of financial condition and results of
                      operations                                                                   7



                                                 PART II

                                            OTHER INFORMATION



Item 1.      Legal Proceedings                                                                    11

Item 2.      Changes in Securities                                                                11

Item 3.      Defaults Upon Senior Securities                                                      11

Item 4.      Submission of Matters to a Vote of Security Holders                                  11

Item 5.      Other Information                                                                    11

Item 6.      Exhibits and Reports on Form 8-K                                                     11

</TABLE>

<PAGE>

                      SIMON TRANSPORTATION SERVICES INC.
          CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                                  ASSETS
<TABLE>
<CAPTION>
<S>                                                                             <C>                        <C>

                                                                                 June 30, 1997             September 30, 1996
                                                                                 -------------             ------------------
                                                                                  (Unaudited)
Current Assets:
         Cash and cash equivalents (Note 2)                                     $   16,309,843               $    5,571,431
         Receivables, net of allowance for doubtful accounts of
         $42,000 and $66,000, respectively                                          16,184,690                   13,261,974
         Operating supplies                                                            753,234                      428,123
         Prepaid expenses and other                                                  2,705,432                    1,930,375
                                                                                --------------               --------------
                  Total current assets                                              35,953,199                   21,191,903
                                                                                --------------               --------------

Property and Equipment, at cost:
         Land                                                                        4,935,574                    2,918,804
         Revenue equipment                                                          64,286,716                   58,779,032
         Buildings and improvements                                                 16,314,892                    8,639,875
         Office furniture and equipment                                              2,907,612                    2,766,218
                                                                                --------------               --------------
                                                                                    88,444,794                   73,103,929
         Less accumulated depreciation and amortization                            (16,162,693)                 (16,390,209)
                                                                                --------------               --------------
                                                                                    72,282,101                   56,713,720
                                                                                --------------              ---------------
Other Assets                                                                           125,450                      317,645
                                                                                ==============              ===============
                                                                                $  108,360,750              $    78,223,268
                                                                                ==============              ===============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
         Current portion of long-term debt                                      $    3,005,341              $     2,892,300
         Current portion of capitalized lease obligations                            4,862,986                    3,760,250
         Accounts payable                                                            2,886,376                    1,691,900
         Accrued liabilities                                                         5,175,836                    4,516,902
         Accrued claims payable                                                      1,363,013                    1,602,344
                                                                                --------------              ---------------
                  Total current liabilities                                         17,293,552                   14,463,696
                                                                                --------------              ---------------

Long-Term Debt, net of current portion                                              19,010,752                   15,433,145
                                                                                --------------              ---------------
Capitalized Lease Obligations, net of current portion                               10,446,942                   15,342,293
                                                                                --------------              ---------------
Deferred Income Taxes                                                                3,880,653                    3,880,653
                                                                                --------------              ---------------

Stockholders' Equity:
         Preferred stock, $.01 par value, 5,000,000 shares
         authorized, none issued                                                            --                           --
         Class A common stock, $.01 par value, 20,000,000 shares
         authorized, 5,328,497 and 2,870,507 shares issued,
         respectively                                                                   53,285                       28,705
         Class B common stock, $.01 par value, 5,000,000 shares
         authorized, 952,161 and 1,872,161 shares issued,
         respectively                                                                    9,522                       18,722
         Additional paid-in capital                                                 48,212,787                   25,282,496
         Retained earnings                                                           9,453,257                    3,773,558
                                                                                --------------               --------------
                  Total stockholders' equity                                        57,728,851                   29,103,481
                                                                               ---------------               --------------
                                                                                $  108,360,750               $   78,223,268
                                                                                ==============               ==============

</TABLE>

                         The  accompanying   notes  to  condensed   consolidated
                          financial  statements  are an  integral  part of these
                          condensed consolidated financial statements.
                                                                               
<PAGE>


                       SIMON TRANSPORTATION SERVICES INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                       <C>                   <C>                 <C>             <C>    

                                                                  For the Three Months Ended           For the Nine Months Ended
                                                          --------------------------------------------------------------------------
                                                               June 30, 1997      June 30, 1996      June 30, 1997    June 30, 1996
                                                               -------------      -------------      -------------    -------------

Operating Revenue                                            $    41,190,623    $    27,225,337     $  111,121,642  $    70,021,189
                                                          --------------------------------------------------------- ----------------

Operating Expenses:
         Salaries, wages, and benefits                            16,304,641         10,590,265         43,346,986       27,531,249
         Fuel & fuel taxes                                         7,946,623          5,816,970         21,566,883       14,084,079
         Operating supplies and expenses                           4,919,653          3,359,073         13,753,234        9,908,650
         Taxes and licenses                                        1,263,791            788,843          3,752,421        2,122,445
         Insurance and claims                                        911,213            652,108          2,371,691        1,424,976
         Communications and utilities                                679,245            457,378          1,813,962        1,160,368
         Depreciation and amortization                             1,290,488          1,573,263          4,090,554        4,731,310
         Rent                                                      4,597,370          1,419,760         12,252,776        2,594,689
                                                          --------------------------------------------------------- ----------------
                  Total operating expenses                        37,913,024         24,657,660        102,948,507       63,557,766
                                                          --------------------------------------------------------- ----------------
                  Operating earnings                               3,277,599          2,567,677          8,173,135        6,463,423
         Gain on sale of real property                             1,896,025                  -          1,896,025                -
         Net interest expense                                       (254,435)          (755,327)          (938,356)      (2,200,133)
                                                          --------------------------------------------------------- ----------------
Earnings before provision for income taxes                         4,919,189          1,812,350          9,130,804        4,263,290
Provision for income taxes (Note 3)                                1,859,361            717,691          3,451,351        4,606,807
                                                          ========================================================= ================
Net earnings (loss)                                          $     3,059,828   $      1,094,659     $    5,679,453   $     (343,517)
                                                          ========================================================= ================

Pro Forma Information (Note 4):
         Earnings before provision for income taxes          $     4,919,189   $      1,812,350     $    9,130,804   $    4,263,290
         Provision for income taxes                                1,859,361            717,691          3,451,351        1,688,263
                                                          ========================================================= ================
         Net earnings                                        $     3,059,828   $      1,094,659     $    5,679,453   $    2,575,027
                                                          ========================================================= ================

         Net earnings per common share                       $          0.49   $           0.23     $         1.03   $         0.60
                                                          ========================================================= ================

         Weighted average common
         shares outstanding                                        6,280,371          4,741,968          5,514,386        4,308,583
                                                          ========================================================= ================

</TABLE>

                         The  accompanying   notes  to  condensed   consolidated
                          financial  statements  are an  integral  part of these
                          condensed consolidated financial statements.
<PAGE>


                          SIMON TRANSPORTATION SERVICES INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (Unaudited)

<TABLE>
<CAPTION>
<S>                                                                             <C>                            <C>
                                                                                              For the Nine Months Ended
                                                                                ---------------------------------------------
                                                                                         June 30, 1997         June 30, 1996
Cash Flows From Operating Activities:
     Net earnings (loss)                                                                 $  5,679,453          $    (343,517)
                                                                                            5,679,453
     Adjustments to reconcile net earnings (loss) to net cash provided
     by operating activities
              Depreciation and amortization                                                 4,090,555              4,731,310
              Gain on sale of real property                                                (1,896,025)                    --
              Changes in operating assets and liabilities:
                  Increase in receivables, net                                             (2,783,574)            (2,548,168)
                  (Increase) decrease in operating supplies                                  (325,111)               203,685
                  Increase in prepaid expenses and other                                     (775,057)            (1,462,986)
                  Decrease in other assets                                                    192,195                161,440
                  Increase in accounts payable                                              1,194,477                707,106
                  Increase in accrued liabilities                                             658,934              1,599,210
                  (Decrease) increase in accrued claims payable                              (239,331)               246,732
                  Increase in deferred income taxes                                                --              3,351,427
                                                                                ---------------------------------------------
                      Net cash provided by operating activities                             5,796,516              6,646,239
                                                                                ---------------------------------------------

Cash Flows From Investing Activities:
     Purchase of property and equipment                                                   (27,399,088)           (20,131,049)
     Proceeds from the sale of property and equipment                                       9,497,034             10,803,091
                                                                                ---------------------------------------------
                      Net cash used in investing activities                               (17,902,054)            (9,327,958)
                                                                                ---------------------------------------------

Cash Flows From Financing Activities:
     Proceeds from issuance of long-term debt                                               5,827,740             17,496,979
     Principal payments on long-term debt                                                  (2,137,092)           (12,041,822)
     Net payments under line-of-credit agreement                                                   --             (4,279,741)
     Principal payments under capitalized lease obligations                                (3,792,615)           (14,390,799)
     Net proceeds from issuance of Class A common stock                                    22,945,917             19,720,737
     Distributions to stockholders                                                                 --               (605,060)
                                                                                ---------------------------------------------
                      Net cash provided by financing activities                            22,843,950              5,873,294
                                                                                ---------------------------------------------

Net Increase In Cash                                                                       10,738,412              3,191,575
Cash at Beginning of Period                                                                 5,571,431                350,380
                                                                                ---------------------------------------------

Cash at End of Period                                                                    $ 16,309,843          $   3,541,955
                                                                                =============================================

Supplemental Disclosure of Cash Flow Information:
         Cash paid during the period for interest                                        $  1,375,803          $   2,244,980
         Cash paid during the period for income taxes                                       3,345,181                     --

Supplemental Schedule of Noncash Investing and Financing Activities:
         Equipment acquired through capitalized lease obligations                                  --              5,784,405
         Sale of equipment in exchange for receivable paid after
              period end                                                                      139,142              4,267,167

</TABLE>


                         The  accompanying   notes  to  condensed   consolidated
                          financial  statements  are an  integral  part of these
                          condensed consolidated financial statements.
<PAGE>




                                                                               
                                    SIMON TRANSPORTATION SERVICES INC.

                            NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                              (Unaudited)

Note 1.           Basis of Presentation

                  The condensed  consolidated  financial  statements include the
                  accounts  of  Simon  Transportation  Services  Inc.,  a Nevada
                  holding company,  and its wholly owned subsidiary,  Dick Simon
                  Trucking,  Inc.  (together,  the  "Company").  All significant
                  intercompany balances and transactions have been eliminated in
                  consolidation.

                  The financial statements have been prepared, without audit, in
                  accordance  with  generally  accepted  accounting  principles,
                  pursuant to the rules and  regulations  of the  Securities and
                  Exchange  Commission.  In  the  opinion  of  management,   the
                  accompanying  financial  statements  include  all  adjustments
                  which are necessary for a fair presentation of the results for
                  the interim periods  presented,  such  adjustments  being of a
                  normal  recurring  nature.  Certain  information  and footnote
                  disclosures  have been  condensed or omitted  pursuant to such
                  rules  and  regulations.  The  September  30,  1996  condensed
                  consolidated  statement of financial position was derived from
                  the  audited  balance  sheet of the  Company for the year then
                  ended.  It is  suggested  that  these  condensed  consolidated
                  financial  statements and notes thereto be read in conjunction
                  with the consolidated  financial  statements and notes thereto
                  included  in the Form  10-K of Simon  Transportation  Services
                  Inc.  for the  year  ended  September  30,  1996.  Results  of
                  operations in interim periods are not  necessarily  indicative
                  of results to be expected for a full year.

Note 2.           Cash and Cash Equivalents

                  The Company  considers all highly liquid  investments  with an
                  original   maturity  of  three  months  or  less  to  be  cash
                  equivalents.  As of June 30, 1997,  approximately $7.0 million
                  is invested in commercial paper through an investment advisor.

Note 3.           Income Taxes

                  The  provision for income taxes for the nine months ended June
                  30, 1996  includes a one-time,  non-cash  charge for  deferred
                  taxes  totaling  approximately  $3.0  million  relating to the
                  Company's   termination  of  its  S  corporation  election  on
                  November 17, 1995.

Note 4.           Pro Forma Net Earnings Per Common Share

                  Pro forma net  earnings  per  common  share is  determined  by
                  dividing pro forma net earnings (loss) by the weighted average
                  number of common shares (considering common stock equivalents)
                  outstanding  during the periods.  Net earnings  (loss) for the
                  nine-month  period  ended June 30,  1996 has been  adjusted to
                  reflect the results of operations as if the Company had been a
                  C  corporation  and  therefore  subject to income taxes in the
                  period,  and,  to  eliminate  the  effect of the $3.0  million
                  one-time, non-cash charge discussed in Note 3.

Forward Looking Statements

This  quarterly  report  and  statements  by  the  Company  in  reports  to  its
stockholders  and public filings,  as well as oral public  statements by Company
representatives  may contain certain forward looking information that is subject
to certain  risks and  uncertainties  that could cause actual  results to differ
materially  from  those   projected.   Without   limitation,   these  risks  and
uncertainties  include economic  recessions or downturns in customers'  business
cycles,  excessive  increases in capacity with the truckload markets,  decreased
demand for transportation  services offered by the Company,  rapid inflation and
fuel price  increases,  increases in interest rates,  and the  availability  and
compensation  of  qualified  drivers.  Readers  should  review and  consider the
various  disclosures made by the Company in this quarterly  statement and in its
reports to its stockholders and periodic reports on Forms 10-K and 10-Q.

<PAGE>



                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                         CONDITION AND RESULTS OF OPERATIONS

Overview

         The Company's  fiscal year ends on September 30 of each year. Thus, the
fiscal  quarters  discussed in this report  represent the Company's third fiscal
quarters of its 1997 and 1996 fiscal years, respectively.  The Company completed
its initial  public  offering  of  approximately  2.4 million  shares of Class A
Common Stock during  November 1995 and its follow-on  offering of  approximately
1.5 million company shares of Class A Common Stock during February 1997.

         The Company operated as an S corporation prior to November 17, 1995. As
a result,  the  Company's  net  taxable  earnings  prior to that date were taxed
directly to the Company's then-existing stockholders rather than to the Company.
The pro forma  statement of earnings data  included in the financial  statements
contained  herein set forth the  Company's  net earnings  (loss) for the periods
presented  as if the Company had been  subject to federal and state income taxes
for  all  periods.  The  termination  of  the  Company's  S  corporation  status
contemporaneously  with its  initial  public  offering  resulted  in a one-time,
non-cash charge of approximately  $3.0 million in recognition of deferred income
taxes,  and the Company  distributed  approximately  $605,000  in S  corporation
earnings to its existing shareholders prior to the offering.

Results of Operations

Three months ended June 30, 1997 and 1996

         Operating revenue increased 51.3% to $41.2 million for the three months
ended June 30, 1997,  from $27.2 million for the  corresponding  period of 1996.
The increase in operating revenue was primarily attributable to a 44.8% increase
in  weighted  average  tractors,  to 1,205 in the  1997  period  from 832 in the
corresponding  1996 period,  and a 4.8% increase in average  revenue per tractor
per week, to $2,652 in the 1997 period from $2,530 in the 1996 period.

         Salaries,  wages,  and  benefits  increased to 39.6% of revenue for the
three  months ended June 30, 1997,  from 38.9% for the  corresponding  period of
1996. The increase is primarily  attributable  to an increase in  administrative
and shop  personnel  during  the 1997  period,  an  increase  in  payroll  costs
associated  with  the  move  to the Company's new  headquarter  facilities,  and
executive incentive compensation based on net earnings before tax. Excluding the
portion of the incentive compensation  associated  with the  non-recurring,  net
gain on the sale of the Company's former headquarters facility, salaries,  wages
and benefits were 39.4% of revenue for the three months ended June 30, 1997.

         Fuel and fuel taxes  decreased to 19.3% of revenue for the three months
ended  June  30,  1997,  from  21.4%  for  the  corresponding  period  of  1996,
principally as a result of fuel surcharges in place with a substantial number of
customers  during  the 1997  period,  lower  fuel  prices in the 1997  period as
compared with the 1996 period, and an increase in the overall fuel efficiency of
the Company's newer tractor fleet.

         Operating  supplies and expenses  decreased to 11.9% of revenue for the
three  months ended June 30, 1997,  from 12.3% for the  corresponding  period of
1996,  primarily as a result of lower parts and tire replacement costs,  outside
repairs,  and maintenance  expense associated with a decrease in the average age
of the Company's  tractor fleet.  Most of the Company's  tractors are covered by
three-year, 500,000-mile warranties.

         Taxes and  licenses  increased  to 3.1% of revenue for the three months
ended June 30, 1997, from 2.9% for the corresponding period of 1996 primarily as
a result of the timing of the  addition of revenue  equipment as compared to the
licensing year.

         Insurance and claims  decreased to 2.2% of revenue for the three months
ended June 30, 1997, from 2.4% for the  corresponding  period of 1996 because of
decreased claims expense.

         Communications and utilities remained  essentially  constant at 1.6% of
revenue for the three  months ended June 30,  1997,  compared  with 1.7% for the
corresponding period of 1996.

         Depreciation and amortization (adjusted for the net gain on the sale of
property and equipment)  decreased to 3.1% of revenue for the three months ended
June 30, 1997, from 5.8% for the corresponding  period of 1996. The decrease was
primarily attributable to the use of operating leases rather than capital leases
to acquire new equipment  during the last year. The Company  realized a net gain
of $512,244 on the sale of property and revenue equipment during the 1997 period
compared with a $714,316 net gain during the 1996 period.

         Rent  increased to 11.2% of revenue for the three months ended June 30,
1997,  from 5.2% for the  corresponding  period of 1996 as the Company added new
equipment  and replaced  equipment  that had been  financed  under capital lease
arrangements  with equipment  financed under operating  leases.  The Company has
utilized  operating  leases in the most recent quarter because of more favorable
terms. If the Company continues to use operating lease financing,  its operating
ratio may be affected in future periods  because the implied  financing costs of
such equipment are included as operating expenses instead of interest expense.

         As a result of the foregoing,  the Company's  operating ratio increased
to  92.0%  for the  three  months  ended  June  30,  1997,  from  90.6%  for the
corresponding period of 1996.

         The  Company  realized a gain of  $1,896,025  on the sale of its former
headquarter  facilities  to the  municipality  of Murray  City  during the three
months ended June 30, 1997.  This  non-recurring  transaction  increased  pretax
earnings by 4.6% of revenue during the period.

         Net interest expense  decreased to 0.6% of revenue for the three months
ended June 30, 1997, from 2.8% for the corresponding  period in 1996 as a result
of lower  average  debt and  capitalized  lease  balances  and a decrease in the
Company's  average  interest  rate in the  1997  period  compared  with the 1996
period.

         The Company's  effective combined federal and state income tax rate for
the three months ended June 30, 1997 was 37.8%, compared with a combined federal
and state  income  tax rate of 39.6%  used for the three  months  ended June 30,
1996.

         As a result of the factors  described above, net earnings  increased to
$3,059,828  ($1,880,408  excluding  the  gain on sale  of the  Company's  former
headquarters)  for the three  months  ended  June 30,  1997,  compared  with net
earnings of $1,094,659 for the corresponding period of 1996.

Nine months ended June 30, 1997 and 1996

         Operating revenue increased 58.7% to $111.1 million for the nine months
ended June 30, 1997,  from $70.0 million for the  corresponding  period of 1996.
The increase in operating revenue was primarily attributable to a 49.7% increase
in weighted average  tractors,  to 1,087 in the 1997 period from 726 in the 1996
period,  and a 6.3% increase in average  revenue per tractor per week, to $2,644
in the 1997 period from $2,487 in the 1996 period.

         Salaries,  wages,  and  benefits  decreased to 39.0% of revenue for the
nine months  ended June 30,  1997,  from 39.3% for the  corresponding  period of
1996. The change was  attributable  to a leveling of the fixed costs  associated
with salaries paid to shop and administrative personnel.  Salaries and wages for
administrative  personnel did not increase  proportionately  with  revenue.  The
decrease was partially offset by executive incentive compensation accrued on net
earnings before taxes.  During the  third  fiscal  quarter of 1997,  the Company
realized a non-recurring,  net gain  on  the  sale of  its  former  headquarters
facility.  In accordance  with the terms of the executive incentive compensation
arrangement,  the Company accrued incentive compensation on this gain. Exclusive
of the compensation  on  this gain,  salaries,  wages and benefits were 38.9% of
revenue for the nine months ended June 30, 1997.

         Fuel and fuel taxes  decreased  to 19.4% of revenue for the nine months
ended  June  30,  1997,  from  20.1%  for  the  corresponding  period  of  1996,
principally  as a result of an increase in the overall  fuel  efficiency  of the
Company's  newer tractor  fleet and fuel  surcharges in place with a substantial
number of  customers  during the 1997  period,  as well as a decrease in average
fuel prices during the third fiscal quarter of 1997.

         Operating  supplies and expenses  decreased to 12.4% of revenue for the
nine months  ended June 30,  1997,  from 14.2% for the  corresponding  period of
1996,  primarily as a result of lower parts and tire replacement costs,  outside
repairs,  and maintenance  expense associated with a decrease in the average age
of the Company's  tractor fleet.  Most of the Company's  tractors are covered by
three-year, 500,000-mile warranties.

         Taxes and  licenses  increased  to 3.4% of revenue  for the nine months
ended June 30, 1997, from 3.0% for the corresponding  period of 1996,  primarily
as a result of the timing of the disposition of revenue equipment as compared to
the licensing year.

         Insurance and claims remained  essentially  constant at 2.1% of revenue
for  the  nine  months  ended  June  30,  1997,   compared  with  2.0%  for  the
corresponding period of 1996

         Communications and utilities remained  essentially  constant at 1.6% of
revenue  for the nine months  ended June 30,  1997,  compared  with 1.7% for the
corresponding period of 1996.

         Depreciation and amortization (adjusted for the net gain on the sale of
property and  equipment)  decreased to 3.7% of revenue for the nine months ended
June 30, 1997, from 6.8% for the corresponding  period of 1996. The decrease was
primarily attributable to the use of operating leases rather than capital leases
to acquire new equipment  during the last year. The Company  realized a net gain
of  $1,391,427  on the sale of property  and revenue  equipment  during the 1997
period compared with a $1,976,476 net gain during the 1996 period.

         Rent  increased  to 11.0% of revenue for the nine months ended June 30,
1997,  from 3.7% for the  corresponding  period of 1996 as the Company added new
equipment  and replaced  equipment  that had been  financed  under capital lease
arrangements  with equipment  financed under operating  leases.  The Company has
utilized  operating  leases  in the most  recent  nine  months  because  of more
favorable terms. If the Company continues to use operating lease financing,  its
operating ratio may be affected in future periods because the implied  financing
costs of such equipment are included as operating  expenses  instead of interest
expense.

         As a result of the foregoing,  the Company's  operating ratio increased
to  92.6%  for  the  nine  months  ended  June  30,  1997,  from  90.8%  for the
corresponding period of 1996.

         The  Company  realized a gain of  $1,896,025  on the sale of its former
headquarter facilities to the municipality of Murray City during the nine months
ended June 30, 1997. This non-recurring transaction increased pretax earnings by
1.7% of revenue during the period.

         Net interest  expense  decreased to 0.8% of revenue for the nine months
ended June 30, 1997, from 3.1% for the corresponding  period in 1996 as a result
of lower  average  debt and  capitalized  lease  balances  and a decrease in the
Company's  average  interest  rate in the  1997  period  compared  with the 1996
period.

         The Company's  effective combined federal and state income tax rate for
the nine  months  ended June 30,  1997 was  37.8%,  compared  with an  estimated
combined  federal  and state  income tax rate of 39.6% used for the nine  months
ended June 30, 1996.

         As a result of the factors  described above, net earnings  increased to
$5,679,453  ($4,500,033  excluding  the  gain on sale  of the  Company's  former
headquarters)  for the nine months ended June 30, 1997,  compared with pro forma
net earnings of $2,575,027 for the corresponding period of 1996.

Liquidity and Capital Resources

         The  growth  of  the  Company's   business  has  required   significant
investment in new revenue  equipment that the Company  historically has financed
with  borrowings  under   installment   notes  payable  to  commercial   lending
institutions  and equipment  manufacturers,  equipment  leases from  third-party
lessors,  borrowings  under its line of credit,  funds  provided  by its initial
public  offering in November 1995,  funds provided by its follow-on  offering in
February 1997, and cash flow from operations.  The Company's  primary sources of
liquidity currently are funds provided by the follow-on offering, cash flow from
operations,  and borrowings and leases with financial institutions and equipment
manufacturers.

         The  Company's  primary  source  of cash flow  from  operations  is net
earnings  adjusted for  depreciation and  amortization.  During the third fiscal
quarter of 1997,  the  non-recurring  gain on the sale of the  Company's  former
headquarter  facilities  also was a source of operating cash flow. The Company's
principal  uses of cash  flow  from  operations  are to  purchase  property  and
equipment,  to service debt  incurred to purchase new revenue  equipment  and to
provide working capital required by the growth of the Company. Net cash provided
by operating  activities was $5,796,516 for the nine months ended June 30, 1997.
The primary  sources of funds were net earnings of  $5,679,453  increased by net
non-cash adjustments of $2,194,530 in depreciation and the non-recurring gain on
the sale of the Company's former headquarter facilities,  $1,194,477 in accounts
payable,  $658,934 in accrued  liabilities  and  $192,195 in other  assets.  The
primary uses of funds were  $775,057 to prepay  licensing on revenue  equipment,
$239,331  to reduce  claims  payable,  an increase  in  accounts  receivable  of
$2,783,574 and $325,111 to increase operating supplies.

         Net cash used in  investing  activities  was  $17,902,054  for the nine
months ended June 30, 1997, as the Company purchased  $27,399,088 of new revenue
equipment,  and  continued  construction  of  its  new  corporate  headquarters,
terminal and  maintenance  facilities in Salt Lake City,  Utah. The Company sold
property and equipment for $9,497,034.  The Company expects capital expenditures
(primarily  for  revenue  equipment,  satellite  communications  units,  and the
construction of a new main terminal and headquarters  facility),  net of revenue
equipment  sales and trade-ins,  to be  approximately  $26.3 million in calendar
1997.

         Net cash provided by financing  activities was  $22,843,950 in the 1997
period,  consisting  primarily of net proceeds of $22,945,917 from the Company's
follow-on  offering  in  February  1997  and  the  exercise  of  stock  options,
$5,827,740  of  new  borrowings  for  the  construction  of  the  new  corporate
headquarters  and terminal facilities, and  payments of $5,929,707 of  principal
under the Company's long-term debt and capitalized lease agreements.

         The Company  maintains a $5  million,  unsecured  line of credit with a
financial  institution.  Borrowings  on the  line of  credit  bear  interest  at
one-half percent (.5%) above the 30-day London Interbank  Offered Rate ("LIBOR")
in effect  from time to time.  The  Company  had not drawn  against  the line of
credit at June 30, 1997.

Other Matters

         During 1997, the Financial  Accounting Standards Board issued Statement
of Financial  Accounting  Standards  ("SFAS") No. 128,  Earnings per Share. This
statement is  effective  for periods  ending  after  December 15, 1997 and early
application  is  prohibited.  This statement will require the Company to present
basic  earnings  per share and  diluted  earnings  per share data to replace the
earnings per share information previously presented.  All prior period data must
be  restated.  SFAS No. 128  provides  new  guidelines  expected to simplify the
computation  of diluted  earnings per share.  Based upon the  Company's  current
capital structure, this statement is not expected to have a material impact when
adopted.
                                                         .

<PAGE>


                                                      PART II

                                                 OTHER INFORMATION


Item 1.           Legal Proceedings.

                  No reportable  events or material  changes occurred during the
                  quarter for which this report is filed.

Item 2.           Changes in Securities.

                  None.

Item 3.           Defaults Upon Senior Securities.

                  None.

Item 4.           Submission of Matters to a Vote of Security Holders.

                  None.

Item 5.           Other Information.

                  None.

Item 6.           Exhibits and Reports on Form 8-K.

                  (a)      Exhibits

                           None.

                  (b)      Reports on Form 8-K.

                           None.


<PAGE>


                                     SIGNATURE

                  Pursuant to the  requirements  of the  Securities and Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned thereunto duly authorized.


                                       SIMON TRANSPORTATION SERVICES INC.,
                                       a Nevada corporation

Date:    July 25, 1997                 By: /s/ Alban B. Lang
         --------------------------        -----------------
                                           (Signature)

                                           Alban B. Lang
                                           Treasurer and Chief Financial Officer