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, 1999

(  )     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 (July 31, 1999).

             Class A Common Stock, $.01 par value: 5,372,683 shares
              Class B Common Stock, $.01 par value: 913,751 shares

                                                     Exhibit Index is on Page 13


<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 June 30, 1999 and September 30, 1998          3

             Condensed consolidated statements of earnings
                for the three months and nine months ended
                June 30, 1999 and 1998                                        4

             Condensed consolidated statements of cash flows
                for the nine months ended June 30, 1999 and 1998              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                                               13

Item 2.      Changes in Securities                                           13

Item 3.      Defaults Upon Senior Securities                                 13

Item 4.      Submission of Matters to a Vote of Security Holders             13

Item 5.      Other Information                                               13

Item 6.      Exhibits and Reports on Form 8-K                                13


<PAGE>



<TABLE>
<CAPTION>
                                            SIMON TRANSPORTATION SERVICES INC.
                                  CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

                                                          ASSETS

<S>                                                                        <C>                           <C>
                                                                            June 30, 1999                September 30, 1998
                                                                            -------------                ------------------
                                                                             (Unaudited)
Current Assets:
         Cash                                                              $         5,510,677            $       7,826,365
         Receivables, net of allowance for doubtful accounts of
         $260,000 and $189,000, respectively                                        24,065,991                   20,250,931
         Operating supplies                                                          1,044,760                    1,069,095
         Prepaid expenses and other                                                  7,185,471                    5,537,548
                                                                       ------------------------     ------------------------
                  Total current assets                                              37,806,899                   34,683,939
                                                                       ------------------------     ------------------------

Property and Equipment, at cost:
         Land                                                                        8,387,972                    8,589,422
         Revenue equipment                                                          44,876,488                   47,702,977
         Buildings and improvements                                                 18,460,492                   18,350,370
         Office furniture and equipment                                              8,786,592                    8,573,389
                                                                       ------------------------     ------------------------
                                                                                    80,511,544                   83,216,158
         Less accumulated depreciation and amortization                            (21,556,466)                 (18,598,221)
                                                                       ------------------------     ------------------------
                                                                                    58,955,078                   64,617,937
                                                                       ------------------------     ------------------------
Other Assets                                                                           329,397                      223,823
                                                                       ========================     ========================
                                                                            $       97,091,374            $      99,525,699
                                                                       ========================     ========================

                                           LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
         Current portion of long-term debt                                  $       14,474,550            $       7,627,142
         Current portion of capitalized lease obligations                              532,349                    2,030,988
         Accounts payable                                                            6,138,990                    5,015,049
         Accrued liabilities                                                         3,431,171                    3,188,404
         Accrued claims payable                                                      1,598,423                    1,260,827
                                                                       ------------------------     ------------------------
                  Total current liabilities                                         26,175,483                   19,122,410
                                                                       ------------------------     ------------------------

Long-Term Debt, net of current portion                                               3,309,145                    9,102,649
                                                                       ------------------------     ------------------------
Capitalized Lease Obligations, net of current portion                                2,020,299                    2,444,856
                                                                       ------------------------     ------------------------
Deferred Income Taxes                                                                9,156,843                    9,156,843
                                                                       ------------------------     ------------------------

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, 5,372,683 shares issued                                            53,727                       53,727
         Class B common stock, $.01 par value, 5,000,000 shares
         authorized, 913,751 shares issued                                               9,138                        9,138
         Treasury stock, 176,600 and 81,100 shares
                  held at cost, respectively                                        (1,053,147)                    (531,547)
         Additional paid-in capital                                                 48,277,256                   48,277,256
         Retained earnings                                                           9,142,630                   11,890,367
                                                                       ------------------------     ------------------------
                  Total stockholders' equity                                        56,429,604                   59,698,941
                                                                       ------------------------     ------------------------
                                                                            $       97,091,374            $      99,525,699
                                                                       ========================     ========================
<FN>


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

<PAGE>

<TABLE>
<CAPTION>

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

                                                                  For the Three Months Ended           For the Nine Months Ended
                                                          --------------------------------------------------------------------------
<S>                                                       <C>                    <C>                <C>              <C>
                                                               June 30, 1999      June 30, 1998      June 30, 1999     June 30, 1998
                                                               -------------      -------------      -------------     -------------

Operating Revenue                                             $   53,599,181     $   50,054,991     $  155,862,817   $  143,210,822
                                                          --------------------------------------------------------------------------

Operating Expenses:
         Salaries, wages, and benefits                            23,197,573         21,552,353         67,933,038       58,915,495
         Fuel & fuel taxes                                         9,614,285          9,275,404         26,916,966       26,635,452
         Operating supplies and expenses                           7,446,816          6,656,953         21,634,545       20,237,124
         Taxes and licenses                                        1,629,903          1,516,404          5,545,865        4,872,748
         Insurance and claims                                      1,849,620          1,232,362          4,966,929        4,152,060
         Communications and utilities                              1,121,009          1,079,165          3,271,198        2,924,327
         Depreciation and amortization                             1,110,584          1,330,842          3,189,634        3,669,524
         Rent                                                      8,687,677          7,501,373         25,809,447       20,613,548
                                                          --------------------------------------------------------------------------
                  Total operating expenses                        54,657,467         50,144,856        159,267,622      142,020,278
                                                          --------------------------------------------------------------------------
                  Operating earnings (loss)                       (1,058,286)           (89,865)        (3,404,805)       1,190,544
         Net interest expense                                       (334,745)          (344,811)        (1,012,779)      (1,164,056)
                                                          --------------------------------------------------------------------------
Earnings (loss) before income taxes                               (1,393,031)          (434,676)        (4,417,584)          26,488
Provision (benefit) for income taxes                                (526,566)          (164,308)        (1,669,847)          10,012
                                                          ==========================================================================
Net earnings (loss)                                           $     (866,465)    $     (270,368)    $   (2,747,737)  $      16,476
                                                          ==========================================================================


Net earnings (loss) per common share
         Basic                                                $        (0.14)    $        (0.04)    $        (0.45)  $        0.00
                                                          ==========================================================================
         Diluted                                              $        (0.14)    $        (0.04)    $        (0.45)  $        0.00
                                                          ==========================================================================

Weighted average common shares outstanding
         Basic                                                     6,109,834          6,286,427          6,119,167       6,285,582
                                                          ==========================================================================
         Diluted                                                   6,109,834          6,286,427          6,119,167       6,285,582
                                                          ==========================================================================

<FN>

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

<PAGE>


<TABLE>
<CAPTION>
                                            SIMON TRANSPORTATION SERVICES INC.
                                      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                        (Unaudited)

                                                                                              For the Nine Months Ended
                                                                                ---------------------------------------------
<S>                                                                                <C>                    <C>
                                                                                       June 30, 1999          June 30, 1998

Cash Flows From Operating Activities:
     Net (loss) earnings                                                           $       (2,747,737)    $           16,476
     Adjustments to reconcile net earnings to net cash provided by (used
     in) operating activities
              Depreciation and amortization                                                 3,189,634              3,669,524
              Changes in operating assets and liabilities:
                  (Increase) decrease in receivables, net                                  (3,283,805)               760,781
                  Decrease (increase) in operating supplies                                    24,335               (108,935)
                  Increase in prepaid expenses and other                                   (1,724,438)            (1,798,356)
                  Increase in other assets                                                   (105,574)               (80,320)
                  Increase in accounts payable                                              1,123,941                849,914
                  Increase (decrease) in accrued liabilities                                  319,282            (1,494,815)
                  Increase (decrease) in accrued claims payable                               337,596               (90,572)
                                                                                ---------------------------------------------
                      Net cash (used in) provided by operating activities                  (2,866,766)             1,723,697
                                                                                ---------------------------------------------

Cash Flows From Investing Activities:
     Purchase of property and equipment                                                    (3,921,776)            (8,403,107)
     Proceeds from the sale of property and equipment                                       6,395,000             11,140,800
                                                                                ---------------------------------------------
                      Net cash provided by investing activities                             2,473,224              2,737,693
                                                                                ---------------------------------------------

Cash Flows From Financing Activities:
     Proceeds from issuance of long-term debt                                                      --              2,900,000
     Principal payments on long-term debt                                                  (5,646,096)            (5,331,862)
     Borrowings under line-of-credit agreement                                              6,700,000                     --
     Principal payments under capitalized lease obligations                                (1,923,196)            (7,075,117)
     (Increase) decrease in receivable from sale of equipment                                (531,255)             1,088,500
     Purchase of treasury stock                                                              (521,600)                    --
     Net proceeds from issuance of Class A common stock                                             1                 31,139
                                                                                ---------------------------------------------
                      Net cash used in financing activities                                (1,922,146)            (8,387,340)
                                                                                ---------------------------------------------

Net Decrease In Cash                                                                       (2,315,688)            (3,925,950)
Cash at Beginning of Period                                                                 7,826,365             12,766,001
                                                                                ---------------------------------------------

Cash at End of Period                                                              $        5,510,677     $        8,840,051
                                                                                =============================================

Supplemental Disclosure of Cash Flow Information:
         Cash paid during the period for interest                                  $        1,103,149     $        1,440,353
         Cash paid during the period for income taxes                                          32,486                688,868

Supplemental Schedule of Noncash Investing and Financing Activities:
         Sale of equipment in exchange for receivable paid after
              Period end                                                                      531,255                     --



<FN>

                         The  accompanying   notes  to  condensed   consolidated
                         financial  statements  are an  integral  part of these
                         condensed consolidated financial statements.
</FN>
</TABLE>
<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,  1998  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,  1998.  Results  of
                  operations in interim periods are not  necessarily  indicative
                  of results to be expected for a full year.

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 within 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  periods  discussed in this report  represent the Company's  third fiscal
quarters and nine months of its 1999 and 1998 fiscal years, respectively.

         Effective July 16, 1999, the Company  reduced its non-driver  workforce
by approximately 25%. Management concluded that the number of administrative and
shop personnel exceeds near-term growth plans.  Management  anticipates that the
workforce  reduction will decrease salary and benefit costs by  approximately $4
million  annually.  After the  reduction,  the  Company's  ratio of  tractors to
non-drivers is approximately 4-to-1.(*)

Results of Operations

Three months ended June 30, 1999 and 1998

         Operating  revenue  increased  $3.5 million (7.1%) to $53.6 million for
the three months ended June 30, 1999,  from $50.1 million for the  corresponding
period of 1998. The increase in operating revenue was primarily  attributable to
a 6.8% increase in weighted average  tractors,  to 1,658 in the 1999 period from
1,552 in the  corresponding  1998 period and a 0.4% increase in average  revenue
per  tractor  per week,  to $2,512 in the 1999  period  from  $2,503 in the 1998
period.

         Salaries,  wages,  and benefits  increased $1.6 million (7.6%) to $23.2
million  during the quarter  ended June 30, 1999 from $21.6  million in the 1998
period. As a percentage of revenue,  salaries,  wages, and benefits increased to
43.3% of revenue for the three months  ended June 30,  1999,  from 43.1% for the
corresponding  period of 1998.  The increase was primarily  attributable  to the
fixed  cost  of  wages  and  benefits  for  non-driver  personnel.  The  Company
eliminated  the positions of over 140  non-driver  personnel  effective July 16,
1999, and expects a decrease as a percentage of revenue in future periods.(*)

         Fuel and fuel  taxes  increased  $0.3  million  (3.7%) to $9.6  million
during the quarter ended June 30, 1999 from $9.3 million in the 1998 period.  As
a percentage of revenue,  fuel and fuel taxes  decreased to 17.9% of revenue for
the three months ended June 30, 1999, from 18.5% for the corresponding period of
1998,  principally  as a result  of lower  fuel  prices  in the 1999  period  as
compared with the 1998 period.

         Operating  supplies and expenses increased $0.7 million (11.9%) to $7.4
million  during the quarter  ended June 30,  1999 from $6.7  million in the 1998
period. As a percentage of revenue, operating supplies and expenses increased to
13.9% of revenue for the three months  ended June 30,  1999,  from 13.3% for the
corresponding  period  of 1998,  primarily  as a result  of  increased  costs of
accident repairs not covered under vehicle warranties.  Substantially all of the
Company's tractors are covered by three-year, 500,000-mile warranties.

         Taxes and licenses increased $0.1 million (7.5%) to $1.6 million during
the quarter ended June 30, 1999 from $1.5 million for the  corresponding  period
of 1998. As a percentage of revenue,  taxes and licenses  remained  unchanged at
3.0% of revenue for the three months ended June 30, 1999 and 1998.

         Insurance  and claims  increased  $0.6 million  (50.1%) to $1.8 million
during the quarter  ended June 30, 1999 from $1.2 million for the  corresponding
period of 1998.  As a percentage of revenue,  insurance and claims  increased to
3.5% of revenue  for the three  months  ended June 30,  1999,  from 2.5% for the
corresponding  period of 1998  because of an increase in the number of accidents
experienced by the Company during the quarter.

------------------------------------------
(*) May contain forward looking statements

<PAGE>

         Communications  and utilities  remained constant at $1.1 million during
each of the quarters  ended June 30, 1999 and 1998.  As a percentage of revenue,
communications and utilities remained  essentially  unchanged at 2.1% of revenue
for  the  three  months  ended  June  30,  1999,  compared  with  2.2%  for  the
corresponding period of 1998.

         Depreciation  and  amortization  decreased $0.2 million (16.6%) to $1.1
million  during the  quarter  ended June 30, 1999 from $1.3  million  during the
quarter  ended June 30,  1998.  As a  percentage  of revenue,  depreciation  and
amortization  (adjusted for the net gain on the sale of property and  equipment)
decreased to 2.1% of revenue for the three months ended June 30, 1999, from 2.7%
for the corresponding period of 1998. 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 $527,387 on the sale of
property and revenue  equipment  during the 1999 period compared with a $384,832
net gain during the 1998 period.

         Rent increased $1.2 million  (15.8%) to $8.7 million during the quarter
ended June 30, 1999 from $7.5 million for the corresponding period of 1998. As a
percentage of revenue,  rent  increased to 16.2% of revenue for the three months
ended  June 30,  1999,  from 15.0% for the  corresponding  period of 1998 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 will  continue  to 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 102.0%  for the  three  months  ended  June 30,  1999,  from  100.2%  for the
corresponding period of 1998.

         Net interest  expense  decreased  $10,000 (2.9%) to $335,000 during the
quarter ended June 30, 1999 from $345,000 for the corresponding  period of 1998.
As a percentage of revenue, net interest expense remained essentially  unchanged
at 0.6% of revenue for the three months ended June 30, 1999,  compared with 0.7%
for the corresponding period in 1998.

         The Company's  effective combined federal and state income tax rate for
the three months ended June 30, 1999 and 1998 was 37.8%.

         As a result of the factors  described above, the Company  experienced a
net loss of $866,465 for the three months ended June 30, 1999,  compared  with a
net loss of $270,368 for the corresponding period of 1998.

Nine months ended June 30, 1999 and 1998

         Operating  revenue increased $12.7 million (8.8%) to $155.9 million for
the nine months ended June 30, 1999,  from $143.2 million for the  corresponding
period of 1998. The increase in operating revenue was primarily  attributable to
a 10.1% increase in weighted average tractors,  to 1,617 in the 1999 period from
1,468 in the 1998 period.  This increase was partially offset by a 0.9% decrease
in average  revenue  per  tractor  per week,  to $2,492 in the 1999  period from
$2,514 in the 1998 period.

         Salaries,  wages, and benefits  increased $9.0 million (15.3%) to $67.9
million  during the nine months  ended June 30,  1999 from $58.9  million in the
1998 period. As a percentage of revenue, salaries, wages, and benefits increased
to 43.6% of revenue for the nine months ended June 30, 1999,  from 41.1% for the
corresponding  period of 1998. The change is primarily  attributable to a driver
wage increase and the cost of employer provided benefits tied to the gross wages
paid to employees. In order to remain competitive in its compensation package to
drivers, the Company raised driver base pay two cents per mile effective January
1, 1998 and again on April 15, 1998.  The Company  eliminated  the  positions of
over 140 non-driver personnel effective July 16, 1999, and expects a decrease as
a percentage of revenue in future periods.(*)

------------------------------------------
(*) May contain forward looking statements

<PAGE>
         Fuel and fuel taxes  increased  $0.3  million  (1.1%) to $26.9  million
during  the nine  months  ended  June 30,  1999 from  $26.6  million in the 1998
period.  As a percentage of revenue,  fuel and fuel taxes  decreased to 17.3% of
revenue  for  the  nine  months  ended  June  30,  1999,   from  18.6%  for  the
corresponding  period of 1998,  principally  as a result of a lower fuel  prices
during the 1999 period.

         Operating  supplies and expenses increased $1.4 million (6.9%) to $21.6
million  during the nine months  ended June 30,  1999 from $20.2  million in the
1998  period.  As a  percentage  of revenue,  operating  supplies  and  expenses
decreased  to 13.9% of revenue for the nine  months  ended June 30,  1999,  from
14.1% for the corresponding  period of 1998,  primarily as a result of decreased
costs of repairs not covered under vehicle  warranties and the cost of preparing
equipment for trade.

         Taxes and  licenses  increased  $0.6  million  (13.8%) to $5.5  million
during  the  nine  months  ended  June  30,  1999  from  $4.9  million  for  the
corresponding  period of 1998.  As a percentage  of revenue,  taxes and licenses
increased to 3.6% of revenue for the nine months ended June 30, 1999,  from 3.4%
of revenue for the  corresponding  period of 1998.  This  increase is consistent
with the corresponding  decrease in average revenue per tractor per week for the
nine months ended March 31, 1999 compared with the corresponding period of 1998.

         Insurance  and claims  increased  $0.8 million  (19.6%) to $5.0 million
during  the  nine  months  ended  June  30,  1999  from  $4.2  million  for  the
corresponding  period of 1998. As a percentage of revenue,  insurance and claims
increased to 3.2% of revenue for the nine months ended June 30, 1999,  from 2.9%
for the corresponding period of 1998,  principally as a result of an increase in
the number and  severity of  accidents  experienced  by the  Company  during the
period.

         Communications  and utilities  increased  $0.4 million  (11.9%) to $3.3
million  during the nine months  ended June 30,  1999 from $2.9  million for the
corresponding  period of 1998.  As a percentage of revenue,  communications  and
utilities  increased to 2.1% of revenue for the nine months ended June 30, 1999,
compared  with 2.0% for the  corresponding  period of 1998.  The fixed  costs of
utilities  for the  Company's  terminals  and the cost of usage of the Company's
satellite  tracking  system did not remain  proportionate  with the  decrease in
revenue per tractor.

         Depreciation  and  amortization  decreased $0.5 million (13.1%) to $3.2
million  during the nine months  ended June 30,  1999 from $3.7  million for the
corresponding  period of 1998.  As a  percentage  of revenue,  depreciation  and
amortization  (adjusted for the net gain on the sale of property and  equipment)
decreased to 2.0% of revenue for the nine months ended June 30, 1999,  from 2.6%
for the corresponding period of 1998. 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 $1,775,036 on the sale
of  property  and  revenue  equipment  during the 1999  period  compared  with a
$1,707,327 net gain during the 1998 period.

         Rent  increased  $5.2 million  (25.2%) to $25.8 million during the nine
months ended June 30, 1999 from $20.6  million for the  corresponding  period of
1998.  As a percentage  of revenue,  rent  increased to 16.6% of revenue for the
nine months ended June 30, 1999, from 14.4% for the corresponding period of 1998
as the Company added new equipment and replaced equipment that had been financed
under capital lease arrangements with equipment financed under operating leases.
In addition,  the fixed monthly rental  payments were not as efficiently  spread
over lower revenue per tractor. 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 will continue to
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  102.2%  for the  nine  months  ended  June  30,  1999,  from  99.2%  for the
corresponding period of 1998.

------------------------------------------
(*) May contain forward looking statements

<PAGE>
         Net interest  expense  decreased  $0.2 million  (13.0%) to $1.0 million
during  the  nine  months  ended  June  30,  1999  from  $1.2  million  for  the
corresponding  period of 1998. As a percentage of revenue,  net interest expense
decreased to 0.6% of revenue for the nine months ended June 30, 1999,  from 0.8%
of revenue  for the  corresponding  period of 1998 as a result of lower  average
debt and  capitalized  lease balances in the 1999 period  compared with the 1998
period.

         The Company's  effective combined federal and state income tax rate for
the nine months ended June 30, 1999 and 1998 was 37.8%.

         As a result of the factors  described above, the Company  experienced a
net loss of $2,747,737 for the nine months ended June 30, 1999,  compared to net
earnings of $16,476 for the corresponding period of 1998.

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, and cash flow from operations. The
Company's primary sources of liquidity  currently are cash and cash equivalents,
and   borrowings   and  leases  with   financial   institutions   and  equipment
manufacturers.

         The Company's primary source of cash flow from operations  generally is
net earnings  adjusted for  depreciation and  amortization,  and deferred income
taxes. The Company's principal uses of cash flow from operations are to increase
prepaid expenses,  to service debt or lease payments associated with new revenue
equipment,  to purchase  property and  equipment  associated  with growth in the
business,  and to internally finance accounts receivable  associated with growth
in the business.  Net cash used in operating activities was $2.9 million for the
nine months ended June 30, 1999. The primary sources of funds were  depreciation
of $3.2 million,  increases of $1.1 million in accounts payable, $0.3 million in
accrued liabilities and $0.3 million in accrued claims payable. The primary uses
of funds were a net loss of $2.7 million,  an increase in accounts receivable of
$3.3 million,  $1.7 million to prepay licensing on revenue  equipment,  and $0.1
million to increase other assets.

         Net cash provided by investing activities was $2.5 million for the nine
months ended June 30, 1999, as the Company purchased $3.9 million of new revenue
equipment and  furniture  and fixtures.  The Company sold property and equipment
for $6.4 million.  The Company  expects  capital  expenditures  for purchased or
leased equipment  (primarily for revenue equipment and satellite  communications
units), net of revenue equipment sales and trade-ins,  to be approximately $17.6
million through calendar 1999.(*)

         Net cash used in  financing  activities  was $1.9  million  in the 1999
period,  consisting  primarily of a $6.7 million borrowing on the Company's line
of credit  offset by payments of $7.6 million of principal  under the  Company's
long-term  debt and  capitalized  lease  agreements,  $0.5 million to repurchase
95,500 shares of the Company's Class A Common Stock, and a $0.5 million increase
in receivables  from the sale of revenue  equipment.  In July 1998, the Board of
Directors  authorized  the  repurchase of up to 500,000 shares of Class A Common
Stock.  The  repurchases  may be made  in the  open  market  or  otherwise  from
time-to-time  through  September  1999.  To date,  the Company  has  repurchased
176,600 shares of Common Stock at an average market price of $5.96 per share for
a total cash outlay of $1.1 million.

         The Company's  borrowings consist of $6.0 million for revenue equipment
debt and capitalized leases, and $5.1 million for the Company's  headquarters in
Salt Lake City and the Atlanta  facility.  The Company  maintains a $10 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  outstanding
borrowings of $6.7 million against the line of credit at June 30, 1999.

------------------------------------------
(*) May contain forward looking statements

<PAGE>
         Management believes that available borrowings under the line of credit,
and future borrowings under installment notes payable or lease  arrangements for
revenue equipment will allow the Company to continue to meet its working capital
requirements,  anticipated capital expenditures,  and obligations under debt and
capitalized and operating leases at least through calendar year 1999.(*)

Year 2000 Compliance

         The  Company  has  completed  a review of each of its core  systems  to
determine year 2000 compliance.  The Company's billing,  dispatch, EDI, fueling,
payroll,  telephone,  vehicle  maintenance,  and  yard and  equipment  inventory
systems and all other critical hardware and software systems were designed to be
year 2000  compliant from  inception.  The Company has also completed its review
and  assessment  of the  year  2000  compliance  status  of its  facilities  and
equipment.  All facilities and systems are year 2000 compliant with the possible
exception of some older personal computers.  These computers do not perform date
critical job functions.  The Company will continue to replace these units during
the normal course of business.(*)

         In April 1999, the Company installed a new mainframe to handle its core
operating  systems.  The Company acquired the new computer as part of its normal
course of business.  The prior  machine  continues to serve as a backup  system.
Both  computers,  peripherals and all operating  software have been  extensively
tested by Company personnel and we believe all are year 2000 compliant.(*)

         The Company relies on Qualcomm to provide the satellite tracking system
necessary to track the location of its  equipment,  and to provide  dispatch and
routing  information  to its  drivers.  The Company has been  informed  that the
software utilized by Qualcomm and the Company is fully year 2000 compliant.  The
Company  utilizes  Comdata to transmit payroll funds to its drivers and to allow
drivers to  purchase  fuel  outside of the  Company's  terminal  locations.  The
Company has been informed that the software and systems  utilized by Comdata and
the Company is fully year 2000  compliant.  The Company also interacts with many
of its vendors through electronic data interchange  (EDI).  Although the Company
is year 2000 compliant in its EDI  applications,  we cannot and do not guarantee
the year 2000 compliance of our business partners' systems.(*)

         The Company has incurred  internal staff costs  necessary to review and
further year 2000 compliance of its core operating systems.  Because the systems
were designed to be year 2000 compliant since inception,  the costs have not had
a material effect on the Company's  financial position or results of operations.
The  Company  also  incurred  additional  internal  staff time to  complete  its
compliance  review of non-core  systems  embedded in facilities  and  equipment.
These non-core systems include microcontrollers contained in tractor engines and
other components,  refrigeration  units, and terminal  facilities.  The costs of
such review were not  incremental  since they  represented  the  redeployment of
existing information technology resources. (*)

         The Company  believes  that the most likely worse case  scenario is the
failure of some third party provided services.  The Company anticipates that the
risks  related to its core and  non-core  systems  will be  mitigated by ongoing
assessment  and  correction  of the systems.  The primary risk to  operations is
service   disruption   from   third-party   providers   that  supply   satellite
communication,  telephone,  fueling and financial  services.  Any  disruption of
these critical services would hinder the Company's  ability to receive,  process
and track its freight or communicate with its customers and drivers.(*)

         A failure of the satellite communication system could have a materially
adverse effect on the Company's business and results of operations.  The Company
is relying on the  contingency  plan  established  by  Qualcomm  to prevent  the
interruption of business.  As an additional backup, the Company plans to use its
existing  telephone systems to dispatch its equipment and provide support to its
drivers in the event of a complete satellite system failure. In the event of EDI
failures on the part of our  customers,  the Company  plans to use its telephone
and  facsimile  system to receive load tenders from its  customers.  The Company
would switch to paper invoices for its customers  unable to use EDI.  Management
believes  that the  Company's  current  state of  readiness,  the  nature of the
Company's business, and the availability of the contingency plans minimizes year
2000 risks.  Management does not foresee significant  liability to third parties
if the Company's systems are not year 2000 compliant.(*)

------------------------------------------
(*) May contain forward looking statements

<PAGE>

Quantitative and Qualitative Disclosures About Market Risk

         The  principal  market  risks to  which  the  Company  is  exposed  are
fluctuation in fuel prices and interest rates on our debt financing.

         We are not  engaged  in any fuel  hedging  transactions.  Thus,  we are
exposed to  fluctuations  in fuel  prices but are not exposed to any market risk
involving hedging costs.

         The principal market risks (i.e., the risk of loss arising from adverse
changes in market rates and prices) to which we are exposed are  interest  rates
on our debt  financing.  Our variable rate debt consists of a revolving  line of
credit,  an  unsecured  term loan and an equipment  finance  term loan  carrying
interest rates tied to LIBOR or the  Eurodollar  rate.  These variable  interest
rates  expose us to the risk that  interest  rates may rise.  At June 30,  1999,
assuming  borrowing  equal to the $6.7  million  drawn on the line of credit and
$5.9 million on other  outstanding  variable rate loans, a one percentage  point
increase in the LIBOR and  Eurodollar  rate would  increase our annual  interest
expense  by  approximately  $126,000.  The  balance of our  equipment  financing
carries fixed  interest  rates and includes  term notes payable and  capitalized
leases totaling approximately $7.8 million. These fixed interest rates expose us
to the risk that  interest  rates may fall. A one  percentage  point  decline in
interest  rates  would have the  effect of  increasing  the  premium we pay over
market interest rates by one percentage point or approximately $78,000 annually.

------------------------------------------
(*) May contain forward looking statements


<PAGE>

                                  PART II

                             OTHER INFORMATION


Item 1.           Legal Proceedings.

                  The Company and certain of its  officers  and  directors  have
         been named as  defendants  in a  securities  class  action filed in the
         United States District Court for the District of Utah,  Caprin v. Simon
         Transportation  Services, Inc., et al., No. 2:98CV 863K (filed December
         3,  1998).  Plaintiffs  in this  action  allege  that  defendants  made
         material  misrepresentations  and omissions  during the period February
         13, 1997 through April 2, 1998 in  violation  of Sections 11, 12(2) and
         15 of the Securities Act  of 1933  and  Sections 10(b) and 20(a) of the
         Securities Exchange Act of 1934 and Rule 10b-5  promulgated thereunder.
         The Company intends to vigorously defend this action.


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

Number            Description


        3.1    *  Articles of Incorporation
        3.2    *  Bylaws
        4.1    *  Articles of Incorporation
        4.2    *  Bylaws
       10.1    *  Outside Director Stock Option Plan.
       10.2    *  Incentive Stock Plan.
       10.3    *  401(k) Plan.
       10.4    #  Loan Agreement (Line of Credit) dated  April 29, 1996  between
                  U.S. Bank of Utah and Simon Transportation Services Inc.
       11         Schedule of Computation of Net Income Per Share
       27         Financial Data Schedule


          *       Incorporated  by  reference  from  the  Company's Registration
                  Statement on  Form S-1,  Registration  No. 33-96876, effective
                  November 17, 1995.

          #       Incorporated  by reference from the Company's Quarterly Report
                  on Form 10-Q for  the  period  ended June 30, 1996, Commission
                  File No. 0-27208, dated August 9, 1996.


                  (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:    August 6, 1999                      By:      /s/ Alban B. Lang
         ----------------------------------- -----------------------------------
                                             (Signature)

                                             Alban B. Lang
                                             Treasurer, Chief Operating Officer
                                             and Chief Financial Officer