SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934 for the fiscal year ended
December 31, 1997
Commission File Number 333-562
KNIGHT TRANSPORTATION, INC.
401(k) PLAN AND TRUST AGREEMENT
(Full title of the plan)
KNIGHT TRANSPORTATION, INC.
5601 West Buckeye Road
Phoenix, Arizona 85043
(602) 269-2000
(Name of issuer of the securities held pursuant to the plan
and the address of the issuer's principal executive office)
<PAGE>
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Year Ended December 31, 1997
Table of Contents
-----------------
Page No.
--------
Auditor's Report 1 - 2
Statement of Net Assets Available for Plan Benefits
December 31, 1997 and 1996 3
Statement of Changes in Net Assets Available for Plan
Benefits With Fund Information
For the Year Ended December 31, 1997 4
Notes to Financial Statements 5 - 10
Supplementary Information
Schedule of Assets Held for Investment Purposes
December 31, 1997 11
Schedule of Reportable Transactions
December 31, 1997 12 - 13
<PAGE>
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500, Item 26b(1)
Year Ended December 31, 1997
July 6, 1998
INDEPENDENT AUDITOR'S REPORT
Trustees
Knight Transportation, Inc. 401(k) Plan
Phoenix, Arizona
We have audited the accompanying statement of net assets available for plan
benefits of Knight Transportation, Inc. 401(k) Plan and Trust Agreement as of
December 31, 1997 and 1996, and the related statement of changes in net assets
available for plan benefits with fund information for the year ended December
31, 1997. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of Knight
Transportation, Inc. 401(k) Plan and Trust Agreement as of December 31, 1997 and
1996, and the changes in net assets available for plan benefits for the year
ended December 31, 1997, in conformity with generally accepted accounting
principles.
<PAGE>
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500, Item 26b(1)
Year Ended December 31, 1997
July 6, 1998
INDEPENDENT AUDITOR'S REPORT
-continued-
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedule of assets held for
investment purposes and the schedule of reportable transactions are presented
for the purposes of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. These supplemental
schedules are the responsibility of the Plan's management. These supplemental
schedules have been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
/s/ Tull Forsberg & Olson
<PAGE>
-3-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500, Item 31
Statement of Net Assets Available for Plan Benefits
December 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
ASSETS
Investments
At fair value:
Shares of registered investment companies:
Investment Co. of America - Equity
Growth Fund $ 0 $ 683,901
The Bond Fund of America - Corporate
Bond Fund 0 134,641
Growth Fund of America - Growth Fund 0 32,173
Putnam New Opportunities Fund 349,421 0
Putnam OTC Emerging Growth Fund 270,852 0
Templeton Foreign Fund 111,989 0
Prudential Jennison Growth Fund 418 0
Fidelity Advisor Equity Growth Fund1 60,999 0
Prudential High Yield Fund, Inc. 77,637 0
Prudential Equity Fund, Inc. 102,667 0
Prudential Jennison Growth and Income
Fund, Inc. 113,300 0
Prudential Government Securities Trust 24,178 0
Knight Transportation, Inc., Company Stock 86,477 0
Participant loans receivable 89,307 35,875
Smith Barney Cash Portfolio - Money Fund 0 182,164
Cash - noninterest bearing account 0 30,490
---------- ----------
1,387,245 1,099,244
At Contract Value (Note 3)
Prudential Insurance Company Contract #GA-6126
of America 272,065 0
---------- ----------
Total investments 1,659,310 1,099,244
---------- ----------
Receivables
Employer's contributions 93,048 57,277
Participants' contributions 29,903 0
---------- ----------
Total receivables 122,951 57,277
---------- ----------
TOTAL ASSETS 1,782,261 1,156,521
LIABILITIES
Total Liabilities 0 0
---------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $1,782,261 $1,156,521
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
-4-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500, Item 32
Statement of Changes in Net Assets Available
for Plan Benefits With Fund Information
For the Year Ended December 31, 1997
<TABLE>
<CAPTION>
Prud. Prud. Fidelity Putnam
Guar. Govt. Prud. High Advisor New
Interest Sec. Equity Yield Equity Opt.
Account Trust Fund Fund Fund Fund
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income
Unrealized appreciation in
fair value of assets $ 13,770 $ 7,926 $ 1,396 $ 5,869 $ 46,574
Interest
Dividends 0 $ 973 6,642 5,141 16,996 7,593
----------- ----------- ----------- ----------- ----------- -----------
13,770 973 $ 14,568 6,537 22,865 54,167
----------- ----------- ----------- ----------- ----------- -----------
Contributions
Employer
Participants 36,456 6,206 24,877 18,803 37,883 68,819
Rollover 8,131 1,162 14,621 385 10,519 26,632
----------- ----------- ----------- ----------- ----------- -----------
44,587 7,368 39,498 19,188 48,402 95,451
----------- ----------- ----------- ----------- ----------- -----------
Total Additions 58,357 8,341 54,066 25,725 71,267 149,618
----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED TO:
Benefits Paid to Participants 48,695 4,514 3,069 1,090 2,740 12,615
Administrative Expenses 0
----------- ----------- ----------- ----------- ----------- -----------
Total Deductions 48,695 4,514 3,069 1,090 2,740 12,615
----------- ----------- ----------- ----------- ----------- -----------
Net increase prior to
interfund transfers 9,662 3,827 50,997 24,635 68,527 137,003
Interfund transfers 262,403 20,351 51,670 53,002 92,472 212,418
----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) 272,065 24,178 102,667 77,637 160,999 349,421
Net assets available for benefits:
Beginning of year 0 0 0 0 0 0
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 272,065 $ 24,178 $ 102,667 $ 77,637 $ 160,999 $ 349,421
=========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Prud.
Putnam Prud. Jennison Knight
Emerging Jennison Templ. Growth Trans.
Growth Growth Foreign and Inc. Inc. Partic.
Fund Fund Fund Fund Stock Loans
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income
Unrealized appreciation in
fair value of assets $ 36,589 $ 7,962 ($ 8,279) $ 3,349 $ 15,134
Interest $ 2,739
Dividends 25 10,860 6,084
----------- ----------- ----------- ----------- ----------- -----------
36,589 7,987 2,581 9,433 15,134 2,739
----------- ----------- ----------- ----------- ----------- -----------
Contributions
Employer
Participants 55,162 9,262 26,438 17,862 15,359
Rollover 17,261 0 10,733 80 615
----------- ----------- ----------- ----------- ----------- -----------
72,423 9,262 37,171 17,942 15,974 0
----------- ----------- ----------- ----------- ----------- -----------
Total Additions 109,012 17,249 39,752 27,375 31,108 2,739
----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED TO:
Benefits Paid to Participants 4,529 9,029 3,223 390 1,137 789
Administrative Expenses
----------- ----------- ----------- ----------- ----------- -----------
Total Deductions 4,529 9,029 3,223 390 1,137 789
----------- ----------- ----------- ----------- ----------- -----------
Net increase prior to
interfund transfers 104,483 8,220 36,529 26,985 29,971 1,950
Interfund transfers 166,369 (7,802) 75,460 86,315 56,506 51,482
----------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) 270,852 418 111,989 113,300 86,477 53,432
Net assets available for benefits:
Beginning of year 0 0 0 0 0 35,875
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 270,852 $ 418 $ 111,989 $ 113,300 $ 86,477 $ 89,307
=========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Other Total
----------- -----------
<S> <C> <C>
ADDITIONS
ADDITIONS TO NET ASSETS
ATTRIBUTED TO:
Investment income
Unrealized appreciation in
fair value of assets $ 130,290
Interest 2,739
Dividends 54,314
----------- -----------
$ 0 187,343
----------- -----------
Contributions
Employer 93,048 93,048
Participants 29,903 347,030
Rollover 90,139
----------- -----------
122,951 530,217
----------- -----------
Total Additions 122,951 717,560
----------- -----------
DEDUCTIONS
DEDUCTIONS FROM NET
ASSETS ATTRIBUTED TO:
Benefits Paid to Participants 91,820
Administrative Expenses 0
----------- -----------
Total Deductions 0 91,820
----------- -----------
Net increase prior to
interfund transfers 122,951 625,740
Interfund transfers (1,120,646) 0
----------- -----------
Net Increase (Decrease) (997,695) 625,740
Net assets available for benefits:
Beginning of year 1,120,646 1,156,521
----------- -----------
End of year $ 122,951 $ 1,782,261
=========== ===========
</TABLE>
See Note 8 for information relating to amounts included in interfund transfers -
other and net assets available for benefits - beginning of year - other.
The accompanying notes are an integral part of these financial statements.
<PAGE>
-5-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500 - Year Ended December 31, 1997
Notes to Financial Statements
NOTE 1. DESCRIPTION OF PLAN
The following description of the Knight Transportation, Inc. (Company)
401(k) Plan and Trust Agreement (Plan) provides only general
information. Participants should refer to the Plan agreement for a
more complete description of the Plan's provisions.
General The Plan is a defined contribution plan covering basically all
full time employees of the Company who have one year of service and
are age nineteen or older. It is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
Contributions Each year, participants may contribute a portion of
their compensation to the Plan. For 1997 the maximum amount that can
be contributed is $9,500. Participants may also contribute amounts
representing distributions from other qualified plans. The Company
matches 50 percent of the participant's salary reduction contributions
for the year, not to exceed $625. The Company may also make a
discretionary contribution at the option of the Company's Board of
Directors. For 1997, there were no discretionary Company contributions
made.
Participant Accounts Each participant's account is credited with the
participant's contribution, company matching contribution, company
discretionary contribution, if any, and plan earnings on participant's
account balance. Forfeited balances of terminated participants'
nonvested accounts are used to reduce future Company contributions.
The benefit to which a participant is entitled is the benefit that can
be provided from the participant's vested account.
Vesting Participants are immediately vested in their contributions
plus earnings. Vesting in the Company's matching and discretionary
portion of their accounts plus earnings is based on years of service.
A participant is 100 percent vested after five years of service.
Investment Options Upon enrollment in the Plan, a participant may
direct his contributions in any of ten investment options:
Guaranteed Interest Account
---------------------------
Funds are invested in a guaranteed investment contract with an
insurance company.
-continued-
<PAGE>
-6-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500 - Year Ended December 31, 1997
Notes to Financial Statements
-Continued-
NOTE 1. DESCRIPTION OF PLAN (Continued)
Prudential Government Securities Trust
--------------------------------------
Funds are invested mainly in shares of U. S. Government
securities.
Putnam New Opportunities Fund
-----------------------------
Funds are invested in shares of a registered investment company
that invests mainly in common stocks.
Putnam OTC Emerging Growth Fund
-------------------------------
Funds are invested in shares of a registered investment company
that invests mainly in common stocks.
Templeton Foreign Fund
----------------------
Funds are invested in shares of a registered investment company
that invests mainly in common stocks and corporate bonds.
Prudential Jennison Growth and Income Fund
------------------------------------------
Funds are invested in shares of a registered investment company
that invests mainly in common stocks.
Fidelity Advisor Equity Growth Fund
-----------------------------------
Funds are invested in shares of a registered investment company
that invests mainly in common and preferred stock.
Prudential High Yield Fund, Inc.
--------------------------------
Funds are invested in shares of a registered investment company
that invests mainly in lower-rated corporate bonds.
Prudential Equity Fund, Inc.
----------------------------
Funds are invested in shares of a registered investment company
that invests mainly in common stocks.
Knight Transportation, Inc. Company Stock
-----------------------------------------
Funds are invested in common stock of Knight Transportation, Inc.
Participants may change their investment options daily.
Payment of Benefits Upon the participant's separation from service as a
result of death, disability or retirement at age 65, the employee's account
balance from employer contributions will be 100% nonforfeitable and paid in
a lump-sum or in the form of periodic payments. The Plan has provisions for
hardship distributions.
-continued-
<PAGE>
-7-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500 - Year Ended December 31, 1997
Notes to Financial Statements
-Continued-
NOTE 1. DESCRIPTION OF PLAN (Continued)
Participant Loans Participants may borrow from their fund accounts a
minimum of $1,000 and to a maximum equal to the lessor of $50,000 or
50% of their nonforfeitable account balances. Repayments are made
through payroll deductions. The loans are secured by 50% of the
nonforfeitable balance in the participant's account. All loans are
considered a directed investment of the participant.
Plan Expenses The Company incurs all major expenses associated with
the Plan.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting The financial statements are prepared on the
accrual basis of accounting.
Estimates The preparation of financial statements in conformity with
generally accepted accounting principles requires the Plan
Administrator to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results may
differ from those estimates.
Investment Valuation and Income Recognition Investments in the Plan
are stated at fair value except for an investment contract which is
valued at contract value (Note 3). Shares of registered investment
companies are valued at quoted market prices which represent the net
asset value of shares held by the plan at year end. The Company stock
is valued at its quoted market price. Participants notes receivable
are valued at cost which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date.
Payment of Benefits Benefit payments are recorded when paid.
NOTE 3. INVESTMENT CONTRACT WITH INSURANCE COMPANY
In 1997, the plan entered into an investment contract with Prudential
Insurance Company of America (Prudential). Prudential maintains the
contributions in a pooled account. The account is credited with
earnings on the underlying investments (principally private placement
bonds, mortgage loans, public securities, corporate bonds, and
preferred stocks), and charged for plan withdrawls and administrative
expenses charged by
-continued-
<PAGE>
-8-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500 - Year Ended December 31, 1997
Notes to Financial Statements
-Continued-
NOTE 3. INVESTMENT CONTRACT WITH INSURANCE COMPANY - Continued
Prudential. The contract is included in the financial statements at
contract value, which approximates fair value as reported to the Plan
by Prudential. Contract value represents contributions made under the
contract, plus earnings, less plan withdrawls, and administrative
expenses because it is fully benefit responsive. There are no reserves
against contract value for credit risk of the contract issue or
otherwise. The fair value of the investment contract at December 31,
1997 was $272,065. The average yield and crediting interest rates were
approximately 6.2% for 1997. Interest rate is reset on a quarterly
basis.
NOTE 4. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to terminate the Plan at any time. In the event
of Plan termination, participants will become 100 percent vested in
their accounts.
NOTE 5. TAX STATUS
As of January 1, 1997, the Plan has adopted the PruArray Prototype
401(k) Plan and Trust sponsored by Prudential Mutual Fund Management,
Inc. which received a favorable determination letter on March 11,
1994. The Plan has applied for, but has not received an individual
determination letter. However, the Plan administrator and the Plan's
tax counsel believe that the Plan is designed and is currently being
operated in compliance with the applicable requirements of the
Internal Revenue Code.
NOTE 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits
per the financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31,
-----------------------------
1997 1996
----------- -----------
<S> <C> <C>
Net assets available for benefits per the
financial statements: $ 1,782,261 $ 1,156,521
Accrued 1997 employer's contributions (93,048) 0
Accrued 1997 employee contributions (29,903) 0
Accrued 1996 employer's contributions 0 (57,277)
Other 4,338 0
----------- -----------
Net assets available for benefits of
the Form 5500 $ 1,663,648 $ 1,099,244
=========== ===========
</TABLE>
-continued-
<PAGE>
-9-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500 - Year Ended December 31, 1997
Notes to Financial Statements
-Continued-
NOTE 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 - Continued
The following is a reconciliation of net increase in net assets
available for Plan benefits per the financial statements to net income
per Form 5500.
Year Ended
December 31, 1997
-----------------
Net increase in net assets available for plan
benefits per the financial statements $ 625,740
ADD: Employer's contributions receivable
at December 31, 1996 57,277
Other 4,338
LESS: Employer's contributions receivable
at December 31, 1997 (93,048)
Participants' contributions receivable
at December 31, 1997 (29,903)
---------
Net income per Form 5500 $ 564,404
=========
NOTE 7. INVESTMENT FUNDS - PRUDENTIAL JENNISON GROWTH FUND
During the year ended December 31, 1997 assets were deposited into the
Prudential Jennison Growth Fund and subsequently transferred to the
Prudential Jennison Growth and Income Fund. The amount of $418
included in the end of year net assets available for plan benefits
represents the untransferred assets, which will be transferred
subsequent to year end.
-continued-
<PAGE>
-10-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500 - Year Ended December 31, 1997
Notes to Financial Statements
-Continued-
NOTE 8. NET ASSETS AVAILABLE FOR PLAN BENEFITS - OTHER
Included in the statement of changes in net assets available for plan
benefits other - for interfund transfer and net assets available for
benefits - beginning of year are amounts relating to funds in the plan
at the beginning of the year and transferred to existing funds. These
funds consisted of the following:
Net Asset Available
Interfund For Benefits:
Transfer Beginning of Year
----------- -------------------
The Bond Fund of America, Inc. $ (134,641) $ 134,641
Investment Company of America (683,901) 683,901
Growth Fund of America (32,173) 32,173
Smith Barney Cash Portfolio (182,164) 182,164
----------- -----------
$(1,032,879) $ 1,032,879
=========== ===========
<PAGE>
-11-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN
AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500, Item 27a
Schedule of Assets Held for Investment Purposes
Year Ended December 31, 1997
<TABLE>
<CAPTION>
====================================================================================================================================
(a) (b) Identity of issue, borrower, (c) Description of investment (d) Cost (e)Current
lessor, or similar party including maturity date, Value
rate of interest, collateral,
par or maturity value
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Guaranteed Interest Account Insurance Product $ 271,113 $ 272,065
- ------------------------------------------------------------------------------------------------------------------------------------
Prudential Government Securities Money Fund Account
Trust 28,519 24,178
- ------------------------------------------------------------------------------------------------------------------------------------
Prudential Equity Fund 5,172.09 shares @ $19.85 per share 96,017 102,667
- ------------------------------------------------------------------------------------------------------------------------------------
Prudential High Yield Fund 8,975.25 shares @ $8.65 per share 76,350 77,637
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity Advisor Equity Growth 3,481.81 shares @ $46.24 per share 156,236 160,999
Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Putnam New Opportunities Fund 7,182.34 shares @ $48.65 per share 303,388 349,421
- ------------------------------------------------------------------------------------------------------------------------------------
Putnam OTC Emerging Growth Fund 18,812.63 shares @ $14.40 per share 235,026 270,852
- ------------------------------------------------------------------------------------------------------------------------------------
Prudential Jennison Growth Fund 30.68 shares @ $13.66 per share 429 418
- ------------------------------------------------------------------------------------------------------------------------------------
Templeton Foreign Fund 11,255.16 shares @ $9.95 per share 120,719 111,989
- ------------------------------------------------------------------------------------------------------------------------------------
Prudential Jennison Growth and 9,593.67 shares @ $11.81 110,374 113,300
Income Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Knight Transportation Co., Inc. 3,116.24 shares @ $27.75 per share 74,027 86,477
Stock
- ------------------------------------------------------------------------------------------------------------------------------------
Participant loans 8.25% to 10%, 07/2004 0 89,307
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL $1,472,198 $1,659,310
====================================================================================================================================
</TABLE>
<PAGE>
-12-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500, Item 27d
Schedule of Reportable Transactions
Year Ended December 31, 1997
<TABLE>
<CAPTION>
===============================================================================================================
(a) Identity (b) Description (c)Purchase (d) Selling (e) Lease
of party of asset (include price price rental
involved interest rate and
maturity in case
of a loan)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Prudential Guaranteed Interest $ 269,899 $ $
Bank & Trust Account
- ---------------------------------------------------------------------------------------------------------------
Prudential Guaranteed Interest 330,897
Bank & Trust Account
- ---------------------------------------------------------------------------------------------------------------
Prudential Prudential Equity 111,760
Bank & Trust Fund
- ---------------------------------------------------------------------------------------------------------------
Prudential Prudential High 83,833
Bank & Trust Yield Fund
- ---------------------------------------------------------------------------------------------------------------
Prudential Fidelity Advisor 89,179
Bank & Trust Equity Growth Fund
- ---------------------------------------------------------------------------------------------------------------
Prudential Fidelity Advisor 165,791
Bank & Trust Equity Growth Fund
- ---------------------------------------------------------------------------------------------------------------
Prudential Putnam New 201,465
Bank & Trust Opportunities Fund
- ---------------------------------------------------------------------------------------------------------------
Prudential Putnam New 330,417
Bank & Trust Opportunities Fund
- ---------------------------------------------------------------------------------------------------------------
Prudential Putnam OTC Emerging 151,712
Bank & Trust Fund
===============================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================
(a) Identity (f) Expense (g) Cost of (h) Current (I) Net
of party incurred asset value of gain
involved with asset on or
transaction transaction (loss)
date
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Prudential $ $ 269,899 $ 269,899 $
Bank & Trust
- -----------------------------------------------------------------------------------------------------
Prudential 330,897 330,897
Bank & Trust
- -----------------------------------------------------------------------------------------------------
Prudential 111,760 111,760
Bank & Trust
- -----------------------------------------------------------------------------------------------------
Prudential 83,833 83,833
Bank & Trust
- -----------------------------------------------------------------------------------------------------
Prudential 89,179 89,179
Bank & Trust
- -----------------------------------------------------------------------------------------------------
Prudential 165,791 165,791
Bank & Trust
- -----------------------------------------------------------------------------------------------------
Prudential 201,465 201,465
Bank & Trust
- -----------------------------------------------------------------------------------------------------
Prudential 330,417 330,417
Bank & Trust
- -----------------------------------------------------------------------------------------------------
Prudential 151,712 151,712
Bank & Trust
=====================================================================================================
</TABLE>
-continued-
<PAGE>
-13-
KNIGHT TRANSPORTATION, INC. 401(k) PLAN AND TRUST AGREEMENT
PN 001
EIN: 86-0649974
Form 5500, Item 27d
Schedule of Reportable Transactions - Continued
Year Ended December 31, 1997
<TABLE>
<CAPTION>
================================================================================================================
(a) Identity (b) Description (c) Purchase (d) Selling (e) Lease
of of asset (include price price rental
party interest rate and
involved maturity in case
of a loan)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Prudential Putnam OTC Emerging $ 248,186 $ $
Bank & Trust Fund
- ----------------------------------------------------------------------------------------------------------------
Prudential Prudential Jennison 86,507
Bank & Trust Growth Fund
- ----------------------------------------------------------------------------------------------------------------
Prudential Prudential Jennison 88,529
Bank & Trust Growth Fund
- ----------------------------------------------------------------------------------------------------------------
Prudential Prudential Jennison 96,073
Bank & Trust Growth Fund
- ----------------------------------------------------------------------------------------------------------------
Prudential Templeton Foreign 129,695
Bank & Trust Fund
- ----------------------------------------------------------------------------------------------------------------
Prudential Prudential Jennison 86,507
Bank & Trust Growth and Income
Fund
- ----------------------------------------------------------------------------------------------------------------
Prudential Prudential Jennison 113,655
Bank & Trust Growth and Income
Fund
- ----------------------------------------------------------------------------------------------------------------
Prudential Knight Transporta- 88,945
Bank & Trust tion Common Stock
- ----------------------------------------------------------------------------------------------------------------
Smith Barney Bond Fund of 133,422 134,249
America
- ----------------------------------------------------------------------------------------------------------------
Smith Barney Investment Company 570,236 680,551
of America
================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================
(a) Identity (f) Expense (g) Cost of (h) Current (I) Net
of incurred asset value of gain
party with asset on or
involved transaction transaction (loss)
date
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Prudential $ $ 248,186 $ 248,186 $
Bank & Trust
- --------------------------------------------------------------------------------------------------
Prudential 78,953 86,507 7,554
Bank & Trust
- --------------------------------------------------------------------------------------------------
Prudential 88,529 88,529
Bank & Trust
- --------------------------------------------------------------------------------------------------
Prudential 88,100 96,073 7,973
Bank & Trust
- --------------------------------------------------------------------------------------------------
Prudential 129,695 129,695
Bank & Trust
- --------------------------------------------------------------------------------------------------
Prudential 86,507 86,507
Bank & Trust
- --------------------------------------------------------------------------------------------------
Prudential 113,655 113,655
Bank & Trust
- --------------------------------------------------------------------------------------------------
Prudential 88,945 88,945
Bank & Trust
- --------------------------------------------------------------------------------------------------
Smith Barney 133,422 134,249 827
- --------------------------------------------------------------------------------------------------
Smith Barney 570,236 680,551 110,315
==================================================================================================
</TABLE>
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
KNIGHT TRANSPORTATION, INC. 401(k)
PLAN AND TRUST AGREEMENT
Dated: July 8, 1998 By: KNIGHT TRANSPORTATION, INC.
------------ Plan Sponsor and Plan Administrator
By: /s/ Clark A. Jenkins
------------------------------------
Clark A. Jenkins
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No. Description
- ----------- -----------
Exhibit 23 Consent of Tull, Forsberg & Olson, independent public accountants.
Consent of Independent Public Accountants
We hereby consent to the use of our report dated July 6, 1998,
on the net assets available for Plan benefits of the Knight Transportation, Inc.
401(k) Plan and Trust Agreement as of December 31, 1997 and 1996, and the
related statement of changes in net assets available for Plan benefits with fund
information for the year ended December 31, 1997, included in this report on
Form 11-K for the Knight Transportation, Inc. 401(k) Plan and Trust Agreement.
/s/ Tull Forsberg & Olson
Phoenix, Arizona
July 8, 1998
