UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549-1004
------------------------------------
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 0-27208
Simon Transportation Services Inc.
(Exact name of registrant as specified in its charter)
Nevada 87-0545608
(State or other jurisdiction of I.R.S. employer identification number)
incorporation or organization)
5175 West 2100 South
West Valley City, Utah 84120
(801) 924-7000
(Address, including zip code, and telephone number,
including area code, of registrant's
principal executive office)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to the filing
requirements for at least the past 90 days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date (June 30, 1997).
Class A Common Stock, $.01 par value: 5,328,497 shares
Class B Common Stock, $.01 par value: 952,161 shares
<PAGE>
SIMON TRANSPORTATION SERVICES INC.
TABLE OF CONTENTS
PART I
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
<S> <C>
PAGE
NUMBER
Item 1. Financial Statements:
Condensed consolidated statements of financial position as of
June 30, 1997 and September 30, 1996 3
Condensed consolidated statements of earnings for the three months and nine
months ended June 30, 1997 and 1996 4
Condensed consolidated statements of cash flows for the nine months ended June
30, 1997 and 1996 5
Notes to condensed consolidated financial statements 6
Item 2. Management's discussion and analysis of financial condition and results of
operations 7
PART II
OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3. Defaults Upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
</TABLE>
<PAGE>
SIMON TRANSPORTATION SERVICES INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
June 30, 1997 September 30, 1996
------------- ------------------
(Unaudited)
Current Assets:
Cash and cash equivalents (Note 2) $ 16,309,843 $ 5,571,431
Receivables, net of allowance for doubtful accounts of
$42,000 and $66,000, respectively 16,184,690 13,261,974
Operating supplies 753,234 428,123
Prepaid expenses and other 2,705,432 1,930,375
-------------- --------------
Total current assets 35,953,199 21,191,903
-------------- --------------
Property and Equipment, at cost:
Land 4,935,574 2,918,804
Revenue equipment 64,286,716 58,779,032
Buildings and improvements 16,314,892 8,639,875
Office furniture and equipment 2,907,612 2,766,218
-------------- --------------
88,444,794 73,103,929
Less accumulated depreciation and amortization (16,162,693) (16,390,209)
-------------- --------------
72,282,101 56,713,720
-------------- ---------------
Other Assets 125,450 317,645
============== ===============
$ 108,360,750 $ 78,223,268
============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $ 3,005,341 $ 2,892,300
Current portion of capitalized lease obligations 4,862,986 3,760,250
Accounts payable 2,886,376 1,691,900
Accrued liabilities 5,175,836 4,516,902
Accrued claims payable 1,363,013 1,602,344
-------------- ---------------
Total current liabilities 17,293,552 14,463,696
-------------- ---------------
Long-Term Debt, net of current portion 19,010,752 15,433,145
-------------- ---------------
Capitalized Lease Obligations, net of current portion 10,446,942 15,342,293
-------------- ---------------
Deferred Income Taxes 3,880,653 3,880,653
-------------- ---------------
Stockholders' Equity:
Preferred stock, $.01 par value, 5,000,000 shares
authorized, none issued -- --
Class A common stock, $.01 par value, 20,000,000 shares
authorized, 5,328,497 and 2,870,507 shares issued,
respectively 53,285 28,705
Class B common stock, $.01 par value, 5,000,000 shares
authorized, 952,161 and 1,872,161 shares issued,
respectively 9,522 18,722
Additional paid-in capital 48,212,787 25,282,496
Retained earnings 9,453,257 3,773,558
-------------- --------------
Total stockholders' equity 57,728,851 29,103,481
--------------- --------------
$ 108,360,750 $ 78,223,268
============== ==============
</TABLE>
The accompanying notes to condensed consolidated
financial statements are an integral part of these
condensed consolidated financial statements.
<PAGE>
SIMON TRANSPORTATION SERVICES INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
For the Three Months Ended For the Nine Months Ended
--------------------------------------------------------------------------
June 30, 1997 June 30, 1996 June 30, 1997 June 30, 1996
------------- ------------- ------------- -------------
Operating Revenue $ 41,190,623 $ 27,225,337 $ 111,121,642 $ 70,021,189
--------------------------------------------------------- ----------------
Operating Expenses:
Salaries, wages, and benefits 16,304,641 10,590,265 43,346,986 27,531,249
Fuel & fuel taxes 7,946,623 5,816,970 21,566,883 14,084,079
Operating supplies and expenses 4,919,653 3,359,073 13,753,234 9,908,650
Taxes and licenses 1,263,791 788,843 3,752,421 2,122,445
Insurance and claims 911,213 652,108 2,371,691 1,424,976
Communications and utilities 679,245 457,378 1,813,962 1,160,368
Depreciation and amortization 1,290,488 1,573,263 4,090,554 4,731,310
Rent 4,597,370 1,419,760 12,252,776 2,594,689
--------------------------------------------------------- ----------------
Total operating expenses 37,913,024 24,657,660 102,948,507 63,557,766
--------------------------------------------------------- ----------------
Operating earnings 3,277,599 2,567,677 8,173,135 6,463,423
Gain on sale of real property 1,896,025 - 1,896,025 -
Net interest expense (254,435) (755,327) (938,356) (2,200,133)
--------------------------------------------------------- ----------------
Earnings before provision for income taxes 4,919,189 1,812,350 9,130,804 4,263,290
Provision for income taxes (Note 3) 1,859,361 717,691 3,451,351 4,606,807
========================================================= ================
Net earnings (loss) $ 3,059,828 $ 1,094,659 $ 5,679,453 $ (343,517)
========================================================= ================
Pro Forma Information (Note 4):
Earnings before provision for income taxes $ 4,919,189 $ 1,812,350 $ 9,130,804 $ 4,263,290
Provision for income taxes 1,859,361 717,691 3,451,351 1,688,263
========================================================= ================
Net earnings $ 3,059,828 $ 1,094,659 $ 5,679,453 $ 2,575,027
========================================================= ================
Net earnings per common share $ 0.49 $ 0.23 $ 1.03 $ 0.60
========================================================= ================
Weighted average common
shares outstanding 6,280,371 4,741,968 5,514,386 4,308,583
========================================================= ================
</TABLE>
The accompanying notes to condensed consolidated
financial statements are an integral part of these
condensed consolidated financial statements.
<PAGE>
SIMON TRANSPORTATION SERVICES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
For the Nine Months Ended
---------------------------------------------
June 30, 1997 June 30, 1996
Cash Flows From Operating Activities:
Net earnings (loss) $ 5,679,453 $ (343,517)
5,679,453
Adjustments to reconcile net earnings (loss) to net cash provided
by operating activities
Depreciation and amortization 4,090,555 4,731,310
Gain on sale of real property (1,896,025) --
Changes in operating assets and liabilities:
Increase in receivables, net (2,783,574) (2,548,168)
(Increase) decrease in operating supplies (325,111) 203,685
Increase in prepaid expenses and other (775,057) (1,462,986)
Decrease in other assets 192,195 161,440
Increase in accounts payable 1,194,477 707,106
Increase in accrued liabilities 658,934 1,599,210
(Decrease) increase in accrued claims payable (239,331) 246,732
Increase in deferred income taxes -- 3,351,427
---------------------------------------------
Net cash provided by operating activities 5,796,516 6,646,239
---------------------------------------------
Cash Flows From Investing Activities:
Purchase of property and equipment (27,399,088) (20,131,049)
Proceeds from the sale of property and equipment 9,497,034 10,803,091
---------------------------------------------
Net cash used in investing activities (17,902,054) (9,327,958)
---------------------------------------------
Cash Flows From Financing Activities:
Proceeds from issuance of long-term debt 5,827,740 17,496,979
Principal payments on long-term debt (2,137,092) (12,041,822)
Net payments under line-of-credit agreement -- (4,279,741)
Principal payments under capitalized lease obligations (3,792,615) (14,390,799)
Net proceeds from issuance of Class A common stock 22,945,917 19,720,737
Distributions to stockholders -- (605,060)
---------------------------------------------
Net cash provided by financing activities 22,843,950 5,873,294
---------------------------------------------
Net Increase In Cash 10,738,412 3,191,575
Cash at Beginning of Period 5,571,431 350,380
---------------------------------------------
Cash at End of Period $ 16,309,843 $ 3,541,955
=============================================
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest $ 1,375,803 $ 2,244,980
Cash paid during the period for income taxes 3,345,181 --
Supplemental Schedule of Noncash Investing and Financing Activities:
Equipment acquired through capitalized lease obligations -- 5,784,405
Sale of equipment in exchange for receivable paid after
period end 139,142 4,267,167
</TABLE>
The accompanying notes to condensed consolidated
financial statements are an integral part of these
condensed consolidated financial statements.
<PAGE>
SIMON TRANSPORTATION SERVICES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
The condensed consolidated financial statements include the
accounts of Simon Transportation Services Inc., a Nevada
holding company, and its wholly owned subsidiary, Dick Simon
Trucking, Inc. (together, the "Company"). All significant
intercompany balances and transactions have been eliminated in
consolidation.
The financial statements have been prepared, without audit, in
accordance with generally accepted accounting principles,
pursuant to the rules and regulations of the Securities and
Exchange Commission. In the opinion of management, the
accompanying financial statements include all adjustments
which are necessary for a fair presentation of the results for
the interim periods presented, such adjustments being of a
normal recurring nature. Certain information and footnote
disclosures have been condensed or omitted pursuant to such
rules and regulations. The September 30, 1996 condensed
consolidated statement of financial position was derived from
the audited balance sheet of the Company for the year then
ended. It is suggested that these condensed consolidated
financial statements and notes thereto be read in conjunction
with the consolidated financial statements and notes thereto
included in the Form 10-K of Simon Transportation Services
Inc. for the year ended September 30, 1996. Results of
operations in interim periods are not necessarily indicative
of results to be expected for a full year.
Note 2. Cash and Cash Equivalents
The Company considers all highly liquid investments with an
original maturity of three months or less to be cash
equivalents. As of June 30, 1997, approximately $7.0 million
is invested in commercial paper through an investment advisor.
Note 3. Income Taxes
The provision for income taxes for the nine months ended June
30, 1996 includes a one-time, non-cash charge for deferred
taxes totaling approximately $3.0 million relating to the
Company's termination of its S corporation election on
November 17, 1995.
Note 4. Pro Forma Net Earnings Per Common Share
Pro forma net earnings per common share is determined by
dividing pro forma net earnings (loss) by the weighted average
number of common shares (considering common stock equivalents)
outstanding during the periods. Net earnings (loss) for the
nine-month period ended June 30, 1996 has been adjusted to
reflect the results of operations as if the Company had been a
C corporation and therefore subject to income taxes in the
period, and, to eliminate the effect of the $3.0 million
one-time, non-cash charge discussed in Note 3.
Forward Looking Statements
This quarterly report and statements by the Company in reports to its
stockholders and public filings, as well as oral public statements by Company
representatives may contain certain forward looking information that is subject
to certain risks and uncertainties that could cause actual results to differ
materially from those projected. Without limitation, these risks and
uncertainties include economic recessions or downturns in customers' business
cycles, excessive increases in capacity with the truckload markets, decreased
demand for transportation services offered by the Company, rapid inflation and
fuel price increases, increases in interest rates, and the availability and
compensation of qualified drivers. Readers should review and consider the
various disclosures made by the Company in this quarterly statement and in its
reports to its stockholders and periodic reports on Forms 10-K and 10-Q.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Overview
The Company's fiscal year ends on September 30 of each year. Thus, the
fiscal quarters discussed in this report represent the Company's third fiscal
quarters of its 1997 and 1996 fiscal years, respectively. The Company completed
its initial public offering of approximately 2.4 million shares of Class A
Common Stock during November 1995 and its follow-on offering of approximately
1.5 million company shares of Class A Common Stock during February 1997.
The Company operated as an S corporation prior to November 17, 1995. As
a result, the Company's net taxable earnings prior to that date were taxed
directly to the Company's then-existing stockholders rather than to the Company.
The pro forma statement of earnings data included in the financial statements
contained herein set forth the Company's net earnings (loss) for the periods
presented as if the Company had been subject to federal and state income taxes
for all periods. The termination of the Company's S corporation status
contemporaneously with its initial public offering resulted in a one-time,
non-cash charge of approximately $3.0 million in recognition of deferred income
taxes, and the Company distributed approximately $605,000 in S corporation
earnings to its existing shareholders prior to the offering.
Results of Operations
Three months ended June 30, 1997 and 1996
Operating revenue increased 51.3% to $41.2 million for the three months
ended June 30, 1997, from $27.2 million for the corresponding period of 1996.
The increase in operating revenue was primarily attributable to a 44.8% increase
in weighted average tractors, to 1,205 in the 1997 period from 832 in the
corresponding 1996 period, and a 4.8% increase in average revenue per tractor
per week, to $2,652 in the 1997 period from $2,530 in the 1996 period.
Salaries, wages, and benefits increased to 39.6% of revenue for the
three months ended June 30, 1997, from 38.9% for the corresponding period of
1996. The increase is primarily attributable to an increase in administrative
and shop personnel during the 1997 period, an increase in payroll costs
associated with the move to the Company's new headquarter facilities, and
executive incentive compensation based on net earnings before tax. Excluding the
portion of the incentive compensation associated with the non-recurring, net
gain on the sale of the Company's former headquarters facility, salaries, wages
and benefits were 39.4% of revenue for the three months ended June 30, 1997.
Fuel and fuel taxes decreased to 19.3% of revenue for the three months
ended June 30, 1997, from 21.4% for the corresponding period of 1996,
principally as a result of fuel surcharges in place with a substantial number of
customers during the 1997 period, lower fuel prices in the 1997 period as
compared with the 1996 period, and an increase in the overall fuel efficiency of
the Company's newer tractor fleet.
Operating supplies and expenses decreased to 11.9% of revenue for the
three months ended June 30, 1997, from 12.3% for the corresponding period of
1996, primarily as a result of lower parts and tire replacement costs, outside
repairs, and maintenance expense associated with a decrease in the average age
of the Company's tractor fleet. Most of the Company's tractors are covered by
three-year, 500,000-mile warranties.
Taxes and licenses increased to 3.1% of revenue for the three months
ended June 30, 1997, from 2.9% for the corresponding period of 1996 primarily as
a result of the timing of the addition of revenue equipment as compared to the
licensing year.
Insurance and claims decreased to 2.2% of revenue for the three months
ended June 30, 1997, from 2.4% for the corresponding period of 1996 because of
decreased claims expense.
Communications and utilities remained essentially constant at 1.6% of
revenue for the three months ended June 30, 1997, compared with 1.7% for the
corresponding period of 1996.
Depreciation and amortization (adjusted for the net gain on the sale of
property and equipment) decreased to 3.1% of revenue for the three months ended
June 30, 1997, from 5.8% for the corresponding period of 1996. The decrease was
primarily attributable to the use of operating leases rather than capital leases
to acquire new equipment during the last year. The Company realized a net gain
of $512,244 on the sale of property and revenue equipment during the 1997 period
compared with a $714,316 net gain during the 1996 period.
Rent increased to 11.2% of revenue for the three months ended June 30,
1997, from 5.2% for the corresponding period of 1996 as the Company added new
equipment and replaced equipment that had been financed under capital lease
arrangements with equipment financed under operating leases. The Company has
utilized operating leases in the most recent quarter because of more favorable
terms. If the Company continues to use operating lease financing, its operating
ratio may be affected in future periods because the implied financing costs of
such equipment are included as operating expenses instead of interest expense.
As a result of the foregoing, the Company's operating ratio increased
to 92.0% for the three months ended June 30, 1997, from 90.6% for the
corresponding period of 1996.
The Company realized a gain of $1,896,025 on the sale of its former
headquarter facilities to the municipality of Murray City during the three
months ended June 30, 1997. This non-recurring transaction increased pretax
earnings by 4.6% of revenue during the period.
Net interest expense decreased to 0.6% of revenue for the three months
ended June 30, 1997, from 2.8% for the corresponding period in 1996 as a result
of lower average debt and capitalized lease balances and a decrease in the
Company's average interest rate in the 1997 period compared with the 1996
period.
The Company's effective combined federal and state income tax rate for
the three months ended June 30, 1997 was 37.8%, compared with a combined federal
and state income tax rate of 39.6% used for the three months ended June 30,
1996.
As a result of the factors described above, net earnings increased to
$3,059,828 ($1,880,408 excluding the gain on sale of the Company's former
headquarters) for the three months ended June 30, 1997, compared with net
earnings of $1,094,659 for the corresponding period of 1996.
Nine months ended June 30, 1997 and 1996
Operating revenue increased 58.7% to $111.1 million for the nine months
ended June 30, 1997, from $70.0 million for the corresponding period of 1996.
The increase in operating revenue was primarily attributable to a 49.7% increase
in weighted average tractors, to 1,087 in the 1997 period from 726 in the 1996
period, and a 6.3% increase in average revenue per tractor per week, to $2,644
in the 1997 period from $2,487 in the 1996 period.
Salaries, wages, and benefits decreased to 39.0% of revenue for the
nine months ended June 30, 1997, from 39.3% for the corresponding period of
1996. The change was attributable to a leveling of the fixed costs associated
with salaries paid to shop and administrative personnel. Salaries and wages for
administrative personnel did not increase proportionately with revenue. The
decrease was partially offset by executive incentive compensation accrued on net
earnings before taxes. During the third fiscal quarter of 1997, the Company
realized a non-recurring, net gain on the sale of its former headquarters
facility. In accordance with the terms of the executive incentive compensation
arrangement, the Company accrued incentive compensation on this gain. Exclusive
of the compensation on this gain, salaries, wages and benefits were 38.9% of
revenue for the nine months ended June 30, 1997.
Fuel and fuel taxes decreased to 19.4% of revenue for the nine months
ended June 30, 1997, from 20.1% for the corresponding period of 1996,
principally as a result of an increase in the overall fuel efficiency of the
Company's newer tractor fleet and fuel surcharges in place with a substantial
number of customers during the 1997 period, as well as a decrease in average
fuel prices during the third fiscal quarter of 1997.
Operating supplies and expenses decreased to 12.4% of revenue for the
nine months ended June 30, 1997, from 14.2% for the corresponding period of
1996, primarily as a result of lower parts and tire replacement costs, outside
repairs, and maintenance expense associated with a decrease in the average age
of the Company's tractor fleet. Most of the Company's tractors are covered by
three-year, 500,000-mile warranties.
Taxes and licenses increased to 3.4% of revenue for the nine months
ended June 30, 1997, from 3.0% for the corresponding period of 1996, primarily
as a result of the timing of the disposition of revenue equipment as compared to
the licensing year.
Insurance and claims remained essentially constant at 2.1% of revenue
for the nine months ended June 30, 1997, compared with 2.0% for the
corresponding period of 1996
Communications and utilities remained essentially constant at 1.6% of
revenue for the nine months ended June 30, 1997, compared with 1.7% for the
corresponding period of 1996.
Depreciation and amortization (adjusted for the net gain on the sale of
property and equipment) decreased to 3.7% of revenue for the nine months ended
June 30, 1997, from 6.8% for the corresponding period of 1996. The decrease was
primarily attributable to the use of operating leases rather than capital leases
to acquire new equipment during the last year. The Company realized a net gain
of $1,391,427 on the sale of property and revenue equipment during the 1997
period compared with a $1,976,476 net gain during the 1996 period.
Rent increased to 11.0% of revenue for the nine months ended June 30,
1997, from 3.7% for the corresponding period of 1996 as the Company added new
equipment and replaced equipment that had been financed under capital lease
arrangements with equipment financed under operating leases. The Company has
utilized operating leases in the most recent nine months because of more
favorable terms. If the Company continues to use operating lease financing, its
operating ratio may be affected in future periods because the implied financing
costs of such equipment are included as operating expenses instead of interest
expense.
As a result of the foregoing, the Company's operating ratio increased
to 92.6% for the nine months ended June 30, 1997, from 90.8% for the
corresponding period of 1996.
The Company realized a gain of $1,896,025 on the sale of its former
headquarter facilities to the municipality of Murray City during the nine months
ended June 30, 1997. This non-recurring transaction increased pretax earnings by
1.7% of revenue during the period.
Net interest expense decreased to 0.8% of revenue for the nine months
ended June 30, 1997, from 3.1% for the corresponding period in 1996 as a result
of lower average debt and capitalized lease balances and a decrease in the
Company's average interest rate in the 1997 period compared with the 1996
period.
The Company's effective combined federal and state income tax rate for
the nine months ended June 30, 1997 was 37.8%, compared with an estimated
combined federal and state income tax rate of 39.6% used for the nine months
ended June 30, 1996.
As a result of the factors described above, net earnings increased to
$5,679,453 ($4,500,033 excluding the gain on sale of the Company's former
headquarters) for the nine months ended June 30, 1997, compared with pro forma
net earnings of $2,575,027 for the corresponding period of 1996.
Liquidity and Capital Resources
The growth of the Company's business has required significant
investment in new revenue equipment that the Company historically has financed
with borrowings under installment notes payable to commercial lending
institutions and equipment manufacturers, equipment leases from third-party
lessors, borrowings under its line of credit, funds provided by its initial
public offering in November 1995, funds provided by its follow-on offering in
February 1997, and cash flow from operations. The Company's primary sources of
liquidity currently are funds provided by the follow-on offering, cash flow from
operations, and borrowings and leases with financial institutions and equipment
manufacturers.
The Company's primary source of cash flow from operations is net
earnings adjusted for depreciation and amortization. During the third fiscal
quarter of 1997, the non-recurring gain on the sale of the Company's former
headquarter facilities also was a source of operating cash flow. The Company's
principal uses of cash flow from operations are to purchase property and
equipment, to service debt incurred to purchase new revenue equipment and to
provide working capital required by the growth of the Company. Net cash provided
by operating activities was $5,796,516 for the nine months ended June 30, 1997.
The primary sources of funds were net earnings of $5,679,453 increased by net
non-cash adjustments of $2,194,530 in depreciation and the non-recurring gain on
the sale of the Company's former headquarter facilities, $1,194,477 in accounts
payable, $658,934 in accrued liabilities and $192,195 in other assets. The
primary uses of funds were $775,057 to prepay licensing on revenue equipment,
$239,331 to reduce claims payable, an increase in accounts receivable of
$2,783,574 and $325,111 to increase operating supplies.
Net cash used in investing activities was $17,902,054 for the nine
months ended June 30, 1997, as the Company purchased $27,399,088 of new revenue
equipment, and continued construction of its new corporate headquarters,
terminal and maintenance facilities in Salt Lake City, Utah. The Company sold
property and equipment for $9,497,034. The Company expects capital expenditures
(primarily for revenue equipment, satellite communications units, and the
construction of a new main terminal and headquarters facility), net of revenue
equipment sales and trade-ins, to be approximately $26.3 million in calendar
1997.
Net cash provided by financing activities was $22,843,950 in the 1997
period, consisting primarily of net proceeds of $22,945,917 from the Company's
follow-on offering in February 1997 and the exercise of stock options,
$5,827,740 of new borrowings for the construction of the new corporate
headquarters and terminal facilities, and payments of $5,929,707 of principal
under the Company's long-term debt and capitalized lease agreements.
The Company maintains a $5 million, unsecured line of credit with a
financial institution. Borrowings on the line of credit bear interest at
one-half percent (.5%) above the 30-day London Interbank Offered Rate ("LIBOR")
in effect from time to time. The Company had not drawn against the line of
credit at June 30, 1997.
Other Matters
During 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards ("SFAS") No. 128, Earnings per Share. This
statement is effective for periods ending after December 15, 1997 and early
application is prohibited. This statement will require the Company to present
basic earnings per share and diluted earnings per share data to replace the
earnings per share information previously presented. All prior period data must
be restated. SFAS No. 128 provides new guidelines expected to simplify the
computation of diluted earnings per share. Based upon the Company's current
capital structure, this statement is not expected to have a material impact when
adopted.
.
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
No reportable events or material changes occurred during the
quarter for which this report is filed.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
None.
(b) Reports on Form 8-K.
None.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
SIMON TRANSPORTATION SERVICES INC.,
a Nevada corporation
Date: July 25, 1997 By: /s/ Alban B. Lang
-------------------------- -----------------
(Signature)
Alban B. Lang
Treasurer and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001000577
<NAME> Simon Transportation Services Inc.
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1.000
<CASH> 16,309,843
<SECURITIES> 0
<RECEIVABLES> 16,226,397
<ALLOWANCES> (41,707)
<INVENTORY> 218,517
<CURRENT-ASSETS> 35,953,199
<PP&E> 88,444,794
<DEPRECIATION> (16,162,693)
<TOTAL-ASSETS> 108,360,750
<CURRENT-LIABILITIES> 17,293,552
<BONDS> 0
0
0
<COMMON> 62,807
<OTHER-SE> 57,666,044
<TOTAL-LIABILITY-AND-EQUITY> 108,360,750
<SALES> 0
<TOTAL-REVENUES> 111,121,642
<CGS> 0
<TOTAL-COSTS> 102,948,507
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 938,356
<INCOME-PRETAX> 9,130,804
<INCOME-TAX> 3,451,351
<INCOME-CONTINUING> 5,679,453
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,679,453
<EPS-PRIMARY> 1.03
<EPS-DILUTED> 1.03
</TABLE>
