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 March 31, 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)


                               4646 South 500 West
                           Salt Lake City, Utah 84123
                                  (801) 268-9100
               (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 (March 31, 1997).

             Class A Common Stock, $.01 par value: 5,328,037 shares
              Class B Common Stock, $.01 par value: 952,161 shares



<PAGE>



                 SIMON TRANSPORTATION SERVICES INC.
                        TABLE OF CONTENTS

                             PART I

                     FINANCIAL INFORMATION


                                                                         PAGE
                                                                        NUMBER

Item 1.      Financial Statements:

             Condensed consolidated statements of financial
                      position as of March 31, 1997 and
                      September 30, 1996                                   3

             Condensed consolidated statements of earnings 
                      for the three months and six months
                      ended March 31, 1997 and 1996                        4

             Condensed consolidated statements of cash flows
                      for the six months ended March 31, 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


<PAGE>

                            SIMON TRANSPORTATION SERVICES INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                                          ASSETS
<TABLE>
<CAPTION>
<S>                                                                             <C>                      <C>
                                                                                March 31, 1997           September 30, 1996
                                                                                --------------           ------------------
                                                                                 (Unaudited)
Current Assets:
         Cash and cash equivalents (Note 2)                                     $   26,822,653                $   5,571,431
         Receivables, net of allowance for doubtful accounts of
         $43,000 and $66,000, respectively                                          13,710,729                   13,261,974
         Operating supplies                                                            782,646                      428,123
         Prepaid expenses and other                                                  3,039,960                    1,930,375
                                                                       ------------------------     ------------------------
                  Total current assets                                              44,355,988                   21,191,903
                                                                       ------------------------     ------------------------

Property and Equipment, at cost:
         Land                                                                        3,297,826                    2,918,804
         Revenue equipment                                                          54,152,803                   58,779,032
         Buildings and improvements                                                 16,206,159                    8,639,875
         Office furniture and equipment                                              2,885,694                    2,766,218
                                                                       ------------------------     ------------------------
                                                                                    76,542,482                   73,103,929
         Less accumulated depreciation and amortization                            (15,102,377)                 (16,390,209)
                                                                       ------------------------     ------------------------
                                                                                    61,440,105                   56,713,720
                                                                       ------------------------     ------------------------
Other Assets                                                                           124,450                      317,645
                                                                       ========================     ========================
                                                                                $  105,920,543                $  78,223,268
                                                                       ========================     ========================

                                           LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
         Current portion of long-term debt                                      $    2,967,852                $   2,892,300
         Current portion of capitalized lease obligations                            4,693,604                    3,760,250
         Accounts payable                                                            2,277,524                    1,691,900
         Accrued liabilities                                                         3,916,132                    4,516,902
         Accrued claims payable                                                      1,522,195                    1,602,344
                                                                       ------------------------     ------------------------
                  Total current liabilities                                         15,377,307                   14,463,696
                                                                       ------------------------     ------------------------

Long-Term Debt, net of current portion                                              19,716,536                   15,433,145
                                                                       ------------------------     ------------------------
Capitalized Lease Obligations, net of current portion                               12,281,410                   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, 5,328,037 and 2,870,507 shares issued,
              respectively                                                              53,280                       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                                                 48,208,652                   25,282,496
         Retained earnings                                                           6,393,183                    3,773,558
                                                                       ------------------------     ------------------------
                  Total stockholders' equity                                        54,664,637                   29,103,481
                                                                       ------------------------     ------------------------
                                                                                $  105,920,543                $  78,223,268
                                                                       ========================     ========================

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

<TABLE>
<CAPTION>

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

                                                                 For the Three Months Ended           For the Six Months Ended
<S>                                                          <C>               <C>                 <C>                <C>
                                                          --------------------------------------------------------------------------
                                                              March 31, 1997    March 31, 1996     March 31, 1997     March 31, 1996
                                                              --------------    --------------     --------------     --------------

Operating Revenue                                            $    35,764,826   $    22,207,751     $   69,931,019     $  42,795,852
                                                          --------------------------------------------------------------------------

Operating Expenses:
         Salaries, wages, and benefits                            13,870,537         8,699,080         27,042,345        16,940,984
         Fuel & fuel taxes                                         6,962,624         4,224,137         13,620,260         8,267,109
         Operating supplies and expenses                           4,483,082         3,383,261          8,833,581         6,549,577
         Taxes and licenses                                        1,052,165           633,211          2,488,630         1,333,602
         Insurance and claims                                        834,118           498,241          1,460,478           772,868
         Communications and utilities                                604,713           348,659          1,134,717           702,990
         Depreciation and amortization                             1,286,521         1,429,847          2,800,066         3,158,047
         Rent                                                      4,208,799           756,137          7,655,406         1,174,929
                                                          --------------------------------------------------------------------------
                  Total operating expenses                        33,302,559        19,972,573         65,035,483        38,900,106
                                                          --------------------------------------------------------------------------
                  Operating earnings                               2,462,267         2,235,178          4,895,536         3,895,746
         Net interest expense                                        237,298           639,209            683,921         1,444,806
                                                          --------------------------------------------------------------------------
Earnings before provision for income taxes                         2,224,969         1,595,969          4,211,615         2,450,940
Provision for income taxes (Note 3)                                  841,038           632,004          1,591,990         3,889,116
                                                          ==========================================================================
Net earnings (loss)                                          $     1,383,931   $       963,965     $    2,619,625     $  (1,438,176)
                                                          ==========================================================================

Pro Forma Information (Note 4):
         Earnings before provision for income taxes          $     2,224,969   $     1,595,969     $    4,211,615     $   2,450,940
         Provision for income taxes                                  841,038           632,004          1,591,990           970,572
                                                          ==========================================================================
         Net earnings                                        $     1,383,931      $    963,965     $    2,619,625     $   1,480,368
                                                          ==========================================================================

         Net earnings per common share                       $          0.25      $       0.20     $         0.51     $        0.36
                                                          ==========================================================================

         Weighted average common
              shares outstanding                                   5,528,261         4,741,968          5,131,394         4,093,074
                                                          ==========================================================================
</TABLE>
The accompanying notes to condensed consolidated financial statements are
an integral part of these condensed consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>


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

                                                                                               For the Six Months Ended
                                                                                   ---------------------------------------------
<S>                                                                                    <C>                     <C>     
                                                                                        March 31, 1997         March 31, 1996
                                                                                       ---------------         --------------       
Cash Flows From Operating Activities:
     Net earnings (loss)                                                               $    2,619,625           $ (1,438,176)
     Adjustments to reconcile net earnings (loss) to net cash provided
          by operating activities

              Depreciation and amortization                                                 2,800,066              3,158,047
              Changes in operating assets and liabilities:
                  Increase in receivables, net                                               (220,905)            (1,310,104)
                  (Increase) decrease in operating supplies                                  (354,523)               109,165
                  Increase in prepaid expenses and other                                   (1,109,585)            (1,878,956)
                  Decrease in other assets                                                    193,195                373,306
                  Increase in accounts payable                                                585,624                533,755
                  (Decrease) increase in accrued liabilities                                 (600,770)               693,273
                  (Decrease) increase in accrued claims payable                               (80,149)               204,826
                  Increase in deferred income taxes                                                --              3,351,427
                                                                                ---------------------------------------------
                      Net cash provided by operating activities                             3,832,578              3,796,563
                                                                                ---------------------------------------------

Cash Flows From Investing Activities:
     Purchase of property and equipment                                                   (12,901,451)           (12,842,479)
     Proceeds from the sale of property and equipment                                       5,147,150              6,060,000
                                                                                ---------------------------------------------
                      Net cash used in investing activities                                (7,754,301)            (6,782,479)
                                                                                ---------------------------------------------

Cash Flows From Financing Activities:
     Proceeds from issuance of long-term debt                                               5,757,244              9,656,928
     Principal payments on long-term debt                                                  (1,398,301)           (11,350,846)
     Net payments under line-of-credit agreement                                                   --             (4,279,741)
     Principal payments under capitalized lease obligations                                (2,127,529)            (7,330,149)
     Net proceeds from issuance of Class A common stock                                    22,941,531             19,720,736
     Distributions to stockholders                                                                 --               (605,060)
                                                                                ---------------------------------------------
                      Net cash provided by financing activities                            25,172,945              5,811,868
                                                                                ---------------------------------------------

Net Increase In Cash                                                                       21,251,222              2,825,952
Cash at Beginning of Period                                                                 5,571,431                350,380
                                                                                ---------------------------------------------

Cash at End of Period                                                                  $   26,822,653           $  3,176,332
                                                                                =============================================

Supplemental Disclosure of Cash Flow Information:
         Cash paid during the period for interest                                      $      957,861           $  1,475,780
         Cash paid during the period for income taxes                                       2,122,344                     --

Supplemental Schedule of Noncash Investing and Financing Activities:
         Equipment acquired through capitalized lease obligations                                  --              5,784,406
         Sale of equipment in exchange for receivable paid after
              period end                                                                      227,850                     --


</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 March 31, 1997, approximately $19.9 million
                  is invested in commercial paper through an investment advisor.

Note 3.           Income Taxes

                  The  provision for income taxes for the six months ended March
                  31, 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
                  six-month  period  ended March 31,  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 second 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 March 31, 1997 and 1996

         Operating revenue increased 61.0% to $35.8 million for the three months
ended March 31, 1997, from $22.2 million for the  corresponding  period of 1996.
The increase in operating revenue was primarily attributable to a 49.4% increase
in  weighted  average  tractors,  to 1,065 in the  1997  period  from 713 in the
corresponding  1996 period,  an 8.4% increase in average revenue per tractor per
week,  to $2,614  in the 1997  period  from  $2,412  in the 1996  period,  and a
decrease in empty miles percentage to 11.9% from 12.2%.

         Salaries,  wages,  and  benefits  decreased to 38.8% of revenue for the
three months ended March 31, 1997,  from 39.2% 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.

         Fuel and fuel taxes  increased to 19.5% of revenue for the three months
ended  March  31,  1997,  from  19.0%  for the  corresponding  period  of  1996,
principally  as a result of higher  fuel  prices in the 1997  period as compared
with the 1996 period.  These costs were  partially  offset by 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.

         Operating  supplies and expenses  decreased to 12.5% of revenue for the
three months ended March 31, 1997,  from 15.2% 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  remained  essentially  unchanged at 2.9% of revenue
for the three months ended March 31,  1997,and for the  corresponding  period of
1996.

         Insurance and claims  increased to 2.3% of revenue for the three months
ended March 31, 1997, from 2.2% for the corresponding  period of 1996 because of
increased claims expense.

         Communications and utilities increased to 1.7% of revenue for the three
months ended March 31,  1997,  from 1.6% for the  corresponding  period of 1996,
primarily as a result of increased  usage of the  Company's  satellite  tracking
system.

         Depreciation and amortization (adjusted for the net gain on the sale of
property and equipment)  decreased to 3.6% of revenue for the three months ended
March 31, 1997, from 6.4% 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 $321,050 on the sale of property and revenue equipment during the 1997 period
compared with a $799,180 net gain during the 1996 period.

         Rent increased to 11.8% of revenue for the three months ended March 31,
1997,  from 3.4% 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 93.1%  for the  three  months  ended  March  31,  1997,  from  89.9%  for the
corresponding period of 1996.

         Net interest expense  decreased to 0.7% of revenue for the three months
ended March 31, 1997, from 2.9% 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  March 31,  1997 was  37.8%,  compared  with a combined
federal and state income tax rate of 39.6% used for the three months ended March
31, 1996.

         As a result of the factors  described above, net earnings  increased to
$1,383,931  for the three months ended March 31, 1997,  compared  with pro forma
net earnings of $963,965 for the corresponding period of 1996.

Six months ended March 31, 1997 and 1996

         Operating  revenue  increased 63.4% to $69.9 million for the six months
ended March 31, 1997, from $42.8 million for the  corresponding  period of 1996.
The increase in operating revenue was primarily attributable to a 52.7% increase
in weighted average  tractors,  to 1,028 in the 1997 period from 673 in the 1996
period,  and a 10.0% increase in average revenue per tractor per week, to $2,639
in the 1997 period from $2,400 in the 1996 period.

         Salaries, wages, and benefits decreased to 38.7% of revenue for the six
months ended March 31, 1997,  from 39.6% 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.

         Fuel and fuel taxes  increased  to 19.5% of revenue  for the six months
ended  March  31,  1997,  from  19.3%  for the  corresponding  period  of  1996,
principally  as a result of higher  fuel  prices in the 1997  period as compared
with the 1996 period.  These costs were  partially  offset by 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.

         Operating  supplies and expenses  decreased to 12.6% of revenue for the
six months  ended March 31,  1997,  from 15.3% 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 3.6% of  revenue  for the six months
ended March 31, 1997, from 3.1% 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  increased  to 2.1% of revenue for the six months
ended March 31, 1997, from 1.8% for the corresponding  period of 1996 because of
increased claims expense.

         Communications and utilities remained essentially  unchanged at 1.6% of
revenue  for the six months  ended  March 31,  1997,  and for the  corresponding
period of 1996.

         Depreciation and amortization (adjusted for the net gain on the sale of
property  and  equipment)  decreased to 4.0% of revenue for the six months ended
March 31, 1997, from 7.4% 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 $477,980 on the sale of property and revenue equipment during the 1997 period
compared with a $1,262,180 net gain during the 1996 period.

         Rent  increased  to 10.9% of revenue for the six months ended March 31,
1996,  from 2.7% 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  six  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  93.0%  for  the  six  months  ended  March  31,  1997,  from  90.9%  for the
corresponding period of 1996.

         Net  interest  expense  decreased to 1.0% of revenue for the six months
ended March 31, 1997, from 3.4% 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 six months  ended  March 31,  1997 was  37.8%,  compared  with an  estimated
combined  federal  and state  income  tax rate of 39.6%  used for the six months
ended March 31, 1996.

         As a result of the factors  described above, net earnings  increased to
$2,619,625 for the six months ended March 31, 1997,  compared with pro forma net
earnings of $1,480,368 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.  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  $3,832,578 for the six months ended March 31, 1997. The primary
sources  of  funds  were  net  earnings  of  $2,619,625  increased  by  non-cash
adjustments of $2,800,066 in  depreciation,  $585,624 in accounts  payable,  and
$193,195 in other  assets.  The primary uses of funds were  $1,109,585 to prepay
licensing  on revenue  equipment,  $680,919 to reduce  accrued  liabilities  and
claims payable,  an increase in accounts  receivable of $220,905 and $354,523 to
increase operating supplies.

         Net cash used in investing activities was $7,754,301 for the six months
ended  March 31,  1997,  as the  Company  purchased  $12,901,451  of new revenue
equipment,  and  continued  construction  of  its  new  corporate  headquarters,
terminal and  maintenance  facilities in Salt Lake City,  Utah. The Company sold
revenue  equipment for  $5,147,150.  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  $34.0 million in calendar
1997.

         Net cash provided by financing  activities was  $25,172,945 in the 1997
period,  consisting  primarily of net proceeds of $22,941,531 from the Company's
follow-on  offering in  February  1997,  $5,757,244  of new  borrowings  for the
construction  of the new corporate  headquarters  and terminal  facilities,  and
payments of  $3,525,830  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 March 31, 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:    April 29, 1997                    By:   /s/ Alban B. Lang
         -------------------------               -----------------
                                                   (Signature)
                                           Alban B. Lang
                                           Treasurer and Chief Financial Officer