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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 11-K
(Mark One)
[X] Annual Report Pursuant to Section 15(d) of
the Securities and Exchange Act of 1934 (Fee Required)
For the fiscal year ended December 31, 1994
OR
[ ] Transition Report Pursuant to Section 15(d) of
Securities Act of 1934 (No Fee Required)
For the transition period from _____ to _____
Commission File No. 0-14746
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Health Images, Inc.
Profit Sharing and Savings Plan
(Full title of the Plan)
HEALTH IMAGES, INC.
(Exact name of issuer of the securities held pursuant to the Plan)
8601 Dunwoody Place
Bldg. 200
Atlanta, Georgia 30350
(Address of principal executive offices)
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HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
FINANCIAL STATEMENTS AND ACCOUNTANTS' REPORT
December 31, 1994
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HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
CONTENTS
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<TABLE>
<S> <C>
REPORT OF INDEPENDENT ACCOUNTANTS 1
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION 2/3
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION 4
NOTES TO FINANCIAL STATEMENTS 5/7
SUPPLEMENTAL SCHEDULES
Schedule of Assets Held for Investment Purposes at Year End 9
Schedule of Assets Held for Investment Purposes That Were
Acquired and Disposed of During the Year 10
Schedule of Reportable Transactions 11
</TABLE>
<PAGE> 4
JOSEPH DECOSIMO
AND COMAPNY
CERTIFIED PUBLIC ACCOUNTANTS
[LOGO]
MEMBER AICPA DIVISION FOR CPA FIRMS
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PRIVATE COMPANIES PRACTICE SECTION SEC PRACTICE SECTION
REPORT OF INDEPENDENT ACCOUNTANTS
The Plan Committee
Health Images, Inc. Profit Sharing
and Savings Plan
Atlanta, Georgia
We were engaged to audit the financial statements of Health Images, Inc. Profit
Sharing and Savings Plan (the Plan) as of December 31, 1994 and 1993, and for
the year ended December 31, 1994, and the supplemental schedules as of and for
the year ended December 31, 1994, as listed on the contents page. These
financial statements and supplemental schedules are the responsibility of the
Plan Committee.
As permitted by 29 CFR 2520.103-8 of the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, the Plan Committee instructed us not to perform, and we
did not perform, any auditing procedures with respect to the information
summarized in the unaudited information footnote to the financial statements,
which was certified by First Union National Bank of North Carolina, the trustee
of the Plan, except for comparing such information with the related information
included in the financial statements and supplemental schedules. We have been
informed by the Plan Committee that the trustee holds the Plan's investment
assets and executes investment transactions. The Plan Committee has obtained
certification from the trustee as of and for the years ended December 31, 1994
and 1993, that the information provided to the Plan Committee by the trustee is
complete and accurate.
Because of the significance of the information that we did not audit, we are
unable to, and do not, express an opinion on the accompanying financial
statements and supplemental schedules taken as a whole. The form and content
of the information included in the financial statements and supplemental
schedules, other than that derived from the information certified by the
trustee, have been audited by us in accordance with generally accepted auditing
standards and, in our opinion, are presented in compliance with the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974.
/s/ Joseph Decosimo and Company
Atlanta, Georgia
June 5, 1995
1
<PAGE> 5
HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
December 31, 1994
(see accountants' report)
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<TABLE>
<CAPTION>
HEALTH IMAGES, STABLE FUNB
INC. INVESTMENT FUNB VALUE FUNB FIXED BALANCED
COMMON STOCK FUND FUND INCOME FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value -
Health Images, Inc.
Common Stock $ 237,000 $ - $ - $ - $ -
Mutual Funds - 634,999 404,994 223,840 479,334
Participant Notes
Receivable - - - - -
---------- --------- --------- --------- ---------
237,000 634,999 404,994 223,840 479,334
Employer's Contribution
Receivable - - - - -
---------- --------- --------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS $ 237,000 $ 634,999 $ 404,994 $ 223,840 $ 479,334
========= ========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE> 6
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<TABLE>
<CAPTION>
INVESCO
INDUSTRIAL FIDELITY TEMPLETON
INCOME FIDELITY MAGELLAN FOREIGN PARTICIPANT
FUND CONTRAFUND FUND FUND NOTES OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C>
$ - $ - $ - $ - $ - $ - $ 237,000
9,280 75,177 32,908 46,753 - - 1,907,285
- - - - 56,532 - 56,532
-------- -------- -------- -------- -------- --------- -----------
9,280 75,177 32,908 46,753 56,532 - 2,200,817
- - - - - 136,975 136,975
-------- -------- -------- -------- -------- --------- -----------
$ 9,280 $ 75,177 $ 32,908 $ 46,753 $ 56,532 $ 136,975 $ 2,337,792
======== ======== ======== ======== ======== ========= ===========
</TABLE>
<PAGE> 7
HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
December 31, 1993
(see accountants' report)
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<TABLE>
<CAPTION>
HEALTH IMAGES,
INC. STABLE FUNB VALUE
COMMON STOCK INVESTMENT FUND FUND
<S> <C> <C> <C>
ASSETS
Investments, at fair value -
Health Images, Inc. Common Stock $ 160,879 $ - $ -
Mutual Funds - 532,554 297,987
Participant Notes Receivable - - -
----------- ----------- -----------
160,879 532,554 297,987
Employer's Contribution Receivable - - -
----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 160,879 $ 532,554 $ 297,987
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 8
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<TABLE>
<CAPTION>
FUNB FIXED FUNB BALANCED PARTICIPANT
INCOME FUND FUND NOTES OTHER TOTAL
<S> <C> <C> <C> <C>
$ - $ - $ - $ - $ 160,879
176,016 349,901 - - 1,356,458
- - 36,986 - 36,986
----------- ----------- ----------- ----------- -----------
176,016 349,901 36,986 - 1,554,323
- - - 125,096 125,096
----------- ----------- ----------- ----------- -----------
$ 176,016 $ 349,901 $ 36,986 $ 125,096 $ 1,679,419
=========== =========== =========== =========== ===========
</TABLE>
<PAGE> 9
HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
Year Ended December 31, 1994
(see accountants' report)
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<TABLE>
<CAPTION>
HEALTH IMAGES, STABLE FUNB
INC. INVESTMENT FUNB VALUE FUNB FIXED BALANCED
COMMON STOCK FUND FUND INCOME FUND FUND
<S> <C> <C> <C> <C> <C>
ADDITIONS
Investment Income -
Net Appreciation
(Depreciation) in Fair
Value of Investments $ 53,701 $ 27,315 $ 8,256 $( 5,629) $( 11,510)
Interest 424 1,019 614 362 926
--------- ---------- ---------- --------- ---------
54,125 28,334 8,870 ( 5,267) ( 10,584)
--------- ---------- ---------- --------- ---------
Contributions -
Participants 68,519 96,660 130,398 87,279 174,489
Employer 15,604 28,644 25,636 19,346 35,829
--------- ---------- ---------- --------- ---------
84,123 125,304 156,034 106,625 210,318
--------- ---------- ---------- --------- ---------
Total Additions 138,248 153,638 164,904 101,358 199,734
--------- ---------- ---------- --------- ---------
DEDUCTIONS
Benefits Paid to
Participants 10,246 81,994 15,111 16,271 22,347
Administrative Expenses 88 259 133 90 233
--------- ---------- ---------- --------- ---------
Total Deductions 10,334 82,253 15,244 16,361 22,580
--------- ---------- ---------- --------- ---------
NET INCREASE (DECREASE)
BEFORE INTERFUND
TRANSFERS 127,914 71,385 149,660 84,997 177,154
INTERFUND TRANSFERS ( 51,793) 31,060 ( 42,653) ( 37,173) ( 47,721)
--------- ---------- ---------- --------- ---------
NET INCREASE 76,121 102,445 107,007 47,824 129,433
NET ASSETS AVAILABLE
FOR BENEFITS -
BEGINNING OF YEAR 160,879 532,554 297,987 176,016 349,901
--------- ---------- ---------- --------- ---------
END OF YEAR $ 237,000 $ 634,999 $ 404,994 $ 223,840 $ 479,334
========= ========== ========== ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 10
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<TABLE>
<CAPTION>
INVESCO
INDUSTRIAL FIDELITY TEMPLETON
INCOME FIDELITY MAGELLAN FOREIGN PARTICIPANT
FUND CONTRAFUND FUND FUND NOTES OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C>
$( 80) $( 739) $( 281) $( 1,548) $ - $ - $ 69,485
9 63 34 9 - - 3,460
--------- --------- --------- --------- --------- --------- -----------
( 71) ( 676) ( 247) ( 1,539) - - 72,945
--------- --------- --------- --------- --------- --------- -----------
3,655 14,476 6,711 13,047 - - 595,234
- - - - - 11,916 136,975
--------- --------- --------- --------- --------- --------- -----------
3,655 14,476 6,711 13,047 - 11,916 732,209
--------- --------- --------- --------- --------- --------- -----------
3,584 13,800 6,464 11,508 - 11,916 805,154
--------- --------- --------- --------- --------- --------- -----------
- - - - - - 145,969
- 9 - - - - 812
--------- --------- --------- --------- --------- --------- -----------
- 9 - - - - 146,781
--------- --------- --------- --------- --------- --------- -----------
3,584 13,791 6,464 11,508 - 11,916 658,373
5,696 61,386 26,444 35,245 19,546 ( 37) -
--------- --------- --------- --------- --------- --------- -----------
9,280 75,177 32,908 46,753 19,546 11,879 658,373
- - - - 36,986 125,096 1,679,419
--------- --------- --------- --------- --------- --------- -----------
$ 9,280 $ 75,177 $ 32,908 $ 46,753 $ 56,532 $ 136,975 $ 2,337,792
========= ========= ========= ========= ========= ========= ===========
</TABLE>
<PAGE> 11
HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(see accountants' report)
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies and practices followed by the Plan are as
follows:
INVESTMENT VALUATION - Investments in marketable securities (temporary
investments, common and preferred stocks and pooled funds) traded on a national
securities exchange are valued at the last reported sales price on the
valuation date. Investments in mutual funds are valued at the quoted market
value of the underlying investments held by the fund. Loans to participants
are stated at the present value of loan payments to be collected.
PLAN DESCRIPTION
The following brief description of the Health Images, Inc. Profit Sharing and
Savings Plan is provided for general information purposes only. Participants
should refer to the Plan agreement for more complete information.
The Plan is a defined contribution profit sharing plan with a cash or deferred
arrangement covering substantially all employees of Health Images, Inc. (the
sponsor) meeting minimum service requirements. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974. Under the
profit sharing feature of the Plan, the sponsor may make annual contributions
at the discretion of the Board of Directors. The Plan also allows
contributions by participating employees of an amount equal to not less than 1%
and not greater than 15% of their compensation. Although it has not expressed
any intent to do so, the company has the right under the Plan to discontinue
its contributions at any time and to terminate the Plan subject to the
provisions of ERISA. In the event of Plan termination, participants will
become 100% vested in their accounts.
Each participant has a fully vested, nonforfeitable right to all amounts
credited to his account under the elective salary reduction portion of the
Plan. Each participant's right in company contributions vests ratably over a
five year period.
Upon service or disability retirement, death or termination, the participant or
beneficiary will receive a lump-sum amount equal to the value of the fund
allocated to his account.
TAX STATUS
The Plan Committee for the sponsor believes the Plan meets the requirements for
tax qualification described in Section 401(a) of the Internal Revenue Code of
1986 (the Code). Accordingly, the Plan's related trust is exempt from tax
under Section 501(a) of the Code. A favorable determination letter has been
received from the Internal Revenue Service on the tax qualification of the Plan
as amended on June 5, 1992. Continued qualification of the Plan will depend
upon its operation in accordance with appropriate tax regulations.
5
<PAGE> 12
HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(see accountants' report)
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UNAUDITED INFORMATION
The following information has been summarized from the trustee's report of the
Plan, which the trustee has certified as complete and accurate, and has not
been subjected to audit procedures:
(1) Assets
(2) Liabilities
(3) Changes in net assets arising from investment activities
(4) Reportable transactions
PLAN AMENDMENT
Effective January 1, 1992, the Plan was amended to change the service
requirement for eligibility from 1,000 hours of service to 1 year of service.
This provision applies to employees hired subsequent to August 1, 1992.
INVESTMENTS
Under the terms of an agreement between First Union National Bank of North
Carolina and the Plan, the bank manages a trust fund on behalf of the Plan.
The assets of the Plan are managed by the bank as a nondiscretionary trustee,
giving the bank authority to purchase and sell investment assets within the
framework of the trust instrument.
The following table presents the fair value of investments as reported by First
Union National Bank. Investments that represent 5 percent or more of the
Plan's net assets are separately identified.
<TABLE>
<CAPTION>
1994 1993
NUMBER OF NUMBER OF
SHARES/UNITS FAIR VALUE SHARES/UNITS FAIR VALUE
<S> <C> <C> <C> <C>
COMMON STOCKS
Health Images, Inc. 40,591 $ 237,000 34,046 $ 160,879
----------- -----------
MUTUAL FUNDS
Stable Investment Fund 46,829 634,999 41,243 532,554
FUNB Value Fund 24,383 404,994 16,902 297,987
FUNB Fixed Income Fund 23,513 223,840 16,876 176,016
FUNB Balanced Fund 42,913 479,334 28,989 349,901
Invesco Industrial Income Fund 831 9,280 - -
Fidelity Contrafund 2,484 75,177 - -
Fidelity Magellan Fund 474 32,908 - -
Templeton Foreign Fund 4,946 46,753 - -
----------- -----------
1,907,285 1,356,458
----------- -----------
$ 2,144,285 $ 1,517,337
=========== ===========
</TABLE>
6
<PAGE> 13
HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(see accountants' report)
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INVESTMENTS - continued
The Plan's investments (including investments bought, sold or held during the
year) appreciated by $69,485 during 1994.
ADMINISTRATIVE EXPENSES
The Plan sponsor paid $17,928 of administrative expenses incurred by the Plan
for 1994.
7
<PAGE> 14
SUPPLEMENTAL SCHEDULES
8
<PAGE> 15
HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT YEAR END
Item 27a of Form 5500
December 31, 1994
(see accountants' report)
<TABLE>
<CAPTION>
EMPLOYER IDENTIFICATION NUMBER: 58-1485618 PLAN NUMBER: 001
- -----------------------------------------------------------------------------------------
CURRENT
IDENTITY OF ISSUE DESCRIPTION OF INVESTMENT COST VALUE
<S> <C> <C> <C>
Health Images, Inc. Common Stock $ 271,788 $ 237,000
First Union National Bank FUNB Value Fund 425,701 404,994
First Union National Bank FUNB Fixed Income Fund 242,816 223,840
First Union National Bank FUNB Balanced Fund 504,221 479,334
First Union National Bank Stable Investment Fund 592,619 634,999
Invesco Industrial Income Fund 9,360 9,280
Fidelity Contrafund 75,906 75,177
Fidelity Magellan Fund 33,177 32,908
Templeton Foreign Fund 48,294 46,753
Participant Notes 7% - 9-1/2% Notes Receivable
from Participants 56,532 56,532
----------- -----------
$ 2,260,414 $ 2,200,817
=========== ===========
</TABLE>
9
<PAGE> 16
HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES THAT
WERE ACQUIRED AND DISPOSED OF DURING THE YEAR
Item 27a of Form 5500
Year Ended December 31, 1994
(see accountants' report)
<TABLE>
<CAPTION>
EMPLOYER IDENTIFICATION NUMBER: 58-1485618 PLAN NUMBER: 001
- -----------------------------------------------------------------------------------------
COST OF PROCEEDS OF
IDENTITY OF ISSUE DESCRIPTION OF INVESTMENT ACQUISITIONS DISPOSITIONS
<S> <C> <C> <C>
Health Images, Inc. Common Stock $ 146,360 $ 124,016
First Union National Bank First Union Money Market Fund $ 7,541 $ 7,545
First Union National Bank FUNB Balanced Fund $ 280,773 $ 114,212
First Union National Bank FUNB Fixed Income Fund $ 143,852 $ 76,540
First Union National Bank FUNB Value Fund $ 257,412 $ 127,298
First Union National Bank Stable Investment Fund $ 287,068 $ 211,654
Invesco Industrial Income Fund $ 9,360 $ -
Fidelity Contrafund $ 76,194 $ 279
Fidelity Magellan Fund $ 33,519 $ 331
Templeton Foreign Fund $ 48,451 $ 150
Participant Notes 7% - 9-1/2% Notes Receivable
from Participants $ 48,900 $ 29,354
</TABLE>
10
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HEALTH IMAGES, INC. PROFIT SHARING AND SAVINGS PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
Item 27d of Form 5500
Year Ended December 31, 1994
(see accountants' report)
EMPLOYER IDENTIFICATION NUMBER: 58-1485618 PLAN NUMBER: 001
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<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET
IDENTITY OF DESCRIPTION PURCHASE SELLING COST ON TRANSACTION NET GAIN
PARTY INVOLVED OF ASSET PRICE PRICE OF ASSET DATE (LOSS)
<S> <C> <C> <C> <C> <C> <C>
Health Images, Inc. Common Stock $ 146,360 $ 146,360
Health Images, Inc. Common Stock $ 124,016 $ 124,943 $( 927)
First Union National Bank FUNB Value Fund $ 257,412 $ 257,412
First Union National Bank FUNB Value Fund $ 127,298 $ 127,092 $ 206
First Union National Bank Stable Investment Fund $ 287,068 $ 287,068
First Union National Bank Stable Investment Fund $ 211,654 $ 201,627 $ 10,027
First Union National Bank FUNB Fixed Income Fund $ 143,852 $ 143,852
First Union National Bank FUNB Balanced Fund $ 280,773 $ 280,773
First Union National Bank FUNB Balanced Fund $ 114,212 $ 113,294 $ 918
</TABLE>
11
<PAGE> 18
SIGNATURES
The Plan. 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 report to be signed on its behalf
by the undersigned hereunto duly authorized.
HEALTH IMAGES, INC.
By:/s/James E. Waddle
----------------------------
Name: James E. Waddle
-----------------------
Title:Human Resources Manager
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As Administrator of Plan
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EXHIBIT 23
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Securities and Exchange Commission
Washington, DC 20549
Gentlemen:
As independent certified public accountants, we hereby consent to
the incorporation by reference in the Registration Statement on Form S-8 for
the Health Images, Inc. Profit Sharing and Savings Plan (Reg. No. 33-39216) of
our report dated June ___, 1994, included in Health Images, Inc. Profit Sharing
and Savings Plan's Annual Report on Form 11-K for the years ended December 31,
1994, and December 31, 1993.
Chattanooga, Tennessee
June __, 1995
