<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------
FORM 11-K
PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
-----------------------
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 [FEE REQUIRED]
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
FOR THE TRANSITION PERIOD FROM TO
-----------------------
COMMISSION FILE NO. 0-25078
A. FULL TITLE OF THE PLAN
PHAMIS INC. SALARY SAVINGS AND DEFERRAL PLAN
B. NAME OF THE ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE
ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE:
PHAMIS, INC.
1001 4TH AVENUE PLAZA
SUITE 1500
SEATTLE, WA 98154-1144
1
<PAGE>
REQUIRED INFORMATION
FINANCIAL STATEMENTS AND EXHIBIT
ITEM (4) (A) INDEPENDENT AUDITORS' REPORT
FINANCIAL STATEMENTS:
STATEMENTS OF ASSETS AVAILABLE FOR BENEFITS,
DECEMBER 31, 1995 AND 1994
STATEMENTS OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS,
YEARS ENDED DECEMBER 31, 1995 AND 1994
NOTES TO FINANCIAL STATEMENTS
SCHEDULE 1-LINE 27A - SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES, DECEMBER 31, 1995
SCHEDULE 2-LINE 27D - SCHEDULE OF REPORTABLE
TRANSACTIONS, YEAR ENDED DECEMBER 31, 1995
(B) EXHIBIT:
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
TRUSTEES HAVE DULY CAUSED THIS ANNUAL REPORT TO BE SIGNED BY THE UNDERSIGNED ON
THEIR BEHALF HEREUNTO DULY AUTHORIZED.
PHAMIS INC. SALARY SAVINGS AND DEFERRAL PLAN
/s/ Gregg Blodgett
DATE: JUNE 28, 1996 BY:__________________________________________
GREGG BLODGETT
VICE PRESIDENT, FINANCE, CFO AND TREASURER
2
<PAGE>
INDEX OF FINANCIAL STATEMENTS AND EXHIBIT
<TABLE>
<CAPTION>
SEQUENTIALLY
ITEM DESCRIPTION NUMBERED PAGE
- ------- --------------------------------------------------- -------------
<S> <C> <C>
4 (A) INDEPENDENT AUDITORS' REPORT 4
FINANCIAL STATEMENTS:
STATEMENTS OF ASSETS AVAILABLE FOR BENEFITS, 5
DECEMBER 31, 1995 AND 1994
STATEMENTS OF CHANGES IN ASSETS AVAILABLE 6
FOR BENEFITS, YEARS ENDED DECEMBER 31, 1995
AND 1994
NOTES TO FINANCIAL STATEMENTS 7-15
SCHEDULE 1-LINE 27A-SCHEDULE OF ASSETS HELD 16
FOR INVESTMENT PURPOSES, DECEMBER 31, 1995
SCHEDULE 2-LINE 27D-SCHEDULE OF REPORTABLE 17
TRANSACTIONS, YEAR ENDED DECEMBER 31, 1995
(B) EXHIBIT:
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 18
</TABLE>
3
<PAGE>
[KPMG LOGO APPEARS HERE]
[PEAT MARWICK LLP LETTERHEAD APPEARS HERE]
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
Plan Administration Committee
PHAMIS Inc.
Salary Savings and Deferral Plan:
We have audited the accompanying statements of assets available for benefits of
PHAMIS Inc. Salary Savings and Deferral Plan (Plan) as of December 31, 1995 and
1994, and the related statements of changes in assets available for benefits for
the years then ended. 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 assets available for benefits as of December 31, 1995
and 1994, and the changes in assets available for benefits for the years then
ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes at December 31, 1995 and reportable transactions for the
year ended December 31, 1995 are presented for the purpose 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. The supplemental schedules have been subjected to the
auditing procedures applied in the audit 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.
KPMG PEAT MARWICK LLP
Seattle, Washington
April 4, 1996
4
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
STATEMENTS OF ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
1995 1994
- -----------------------------------------------------------------
<S> <C> <C>
Investments at fair value:
Money market funds $ 186,806 33,187
Certificates of deposit - 125,000
Common stock 3,795,029 659,232
Mutual funds 2,984,572 1,664,943
Self-directed investments of
participants 1,242,024 926,973
Loans to participants 120,562 132,174
----------- ---------
8,328,993 3,541,509
----------- ---------
Receivables:
Sponsor 23,209 12,856
Participants 37,100 31,544
Other 3,227 2,367
----------- ---------
63,536 46,767
----------- ---------
Accrued interest - 664
- -----------------------------------------------------------------
Assets available for benefits $ 8,392,529 3,588,940
- -----------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
STATEMENTS OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
1995 1994
- -----------------------------------------------------------------
Additions to assets available for
benefits attributed to:
Investment income:
<S> <C> <C>
Dividends $ 230,279 100,389
Interest 35,068 13,135
Net appreciation (depreciation) in
fair value of investments:
Common stock 806,756 464,696
Mutual funds 367,555 (85,984)
Self-directed investments of
participants 213,519 85,113
---------- ---------
1,387,830 463,825
---------- ---------
1,653,177 577,349
---------- ---------
Contributions:
Sponsor 164,885 94,248
Participants 1,072,110 740,069
Rollovers 134,989 73,926
---------- ---------
1,371,984 908,243
---------- ---------
Transfer from PHAMIS Inc. Employee
Stock Ownership Plan 1,930,445 -
---------- ---------
Total additions 4,955,606 1,485,592
---------- ---------
Deductions from assets available for
benefits attributed to benefits paid
to participants 152,017 73,079
---------- ---------
Net increase in assets
available for benefits 4,803,589 1,412,513
Assets available for benefits at
beginning of year 3,588,940 2,176,427
---------- ---------
Assets available for benefits at end of $8,392,529 3,588,940
year
- -----------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995 AND 1994
- --------------------------------------------------------------------------------
(1) PLAN DESCRIPTION
(A) GENERAL
The following description of the PHAMIS Inc. Salary Savings and
Deferral Plan (Plan) provides only general information. Participants
should refer to the Plan document for a more complete description of
the Plan's provisions.
The Plan is a defined contribution plan established in 1984 to provide
a deferred income savings plan for employees of PHAMIS, Inc. (Sponsor).
The Plan's provisions permit tax deferred contributions by participants
pursuant to section 401(k) of the Internal Revenue Code. The Plan is
subject to the provisions of the Employee Retirement Income Security
Act of 1974 (ERISA).
Effective October 1, 1995, the PHAMIS Inc. Employee Stock Ownership
Plan (ESOP) merged with the Plan.
(B) PLAN ADMINISTRATION
The Sponsor is the Plan administrator and has appointed an
administrative committee to administer the Plan. The members of the
administrative committee also serve as trustees of the Plan. The assets
of the Plan are held by Smith Barney, Inc. Certain services are
performed by Howard Johnson & Company based upon information provided
by the Plan administrator. Administrative expenses of the Plan are paid
by the Sponsor.
On January 1, 1996, the assets of the Plan were transferred from Smith
Barney, Inc. to Northwestern Trust and Investors Advisory Company, the
new trustee of the Plan.
(C) ELIGIBILITY, CONTRIBUTIONS AND PARTICIPANT ACCOUNTS
All non-union employees of the Sponsor are eligible to participate in
the Plan after completing one hour of service, and become eligible for
the employer matching contribution on the first day of the calendar
quarter immediately following completion of one year of service
(defined as a Plan year during which a participant completes at least
1,000 hours of service). All eligible employees of the Sponsor are
participants in the Plan whether or not actual contributions are made.
Participants may contribute between 1% and 15% of their pretax salary,
limited by the Internal Revenue Code to $9,240 in 1995 and 1994.
Through December 31, 1994, pretax contributions were matched by the
employer at 25% up to $1,000 per employee per year.
Participants have the option of directing their contributions into any
one or more of the Plan's investment accounts. Through December 31,
1994, the employer matching contribution was allocated among the
investment accounts in the same manner as the participant contributions
or entirely to the PHAMIS, Inc. Stock Fund as elected by the
participant.
(Continued)
7
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
Effective January 1, 1995, the employer matching contributions
increased to 50% of the participant's contributions up to $1,000 per
employee per year and consist of PHAMIS, Inc. company stock only. The
employer matching contributions will be required to remain in the
PHAMIS, Inc. Stock Fund until termination of employment, disability or
death.
Effective January 1, 1996, the maximum matching contribution will
increase to $1,500 per employee.
A description of each of the available funds as of December 31, 1995
follows:
. MONEY MARKET FUND--Invests in certificates of deposit and the
Smith Barney, Inc. Money Funds Inc. Cash Portfolio.
. PHAMIS, INC. STOCK FUND--Invests in PHAMIS, Inc. common stock.
Effective January 1, 1995, participants are allowed to allocate up
to 100% of their contributions to this fund. In 1994, participants
were allowed to allocate up to 10% of total contributions to this
fund.
. BOND FUND OF AMERICA--Invests at least 60% of its assets in
securities rated A or better by Moody's or Standard & Poor's bond
rating services and can invest in lower rated, higher risk
securities when appropriate, as well as in non-U.S. bonds.
. GROWTH FUND OF AMERICA--Invests in cyclical companies, depressed
industries, turnarounds and value situations as well as growth
stocks seeking to offer superior opportunities for growth of
capital. These investments generally assume higher risks in
exchange for the opportunity for higher returns.
. WASHINGTON MUTUAL INVESTORS FUND--Seeks current income and an
opportunity for growth of principal consistent with sound common
stock investing. The fund invests only in companies which satisfy
certain specifications regarding earnings, dividends, capital and
liquidity.
. SELF-DIRECTED FUND--Investments are made at the direction of the
participant. Participants may invest in a wide range of
investments, generally limited to publicly traded securities. All
contributions to the fund are invested through Smith Barney, Inc.
. LOAN FUND--Allows participants to borrow up to 50% of their
total account balance subject to certain limitations.
(Continued)
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Effective April 1, 1996, the Sponsor removed the Money Market Fund and
the Growth Fund of America and added the AIM Limited Maturity Treasury
Shares Fund, the AIM Value Fund, the Kaufmann Fund, and the Templeton
Foreign Fund. Participants may allocate their existing Money Market Fund
and Growth Fund of America balances to any one or more of the available
investment funds.
In addition, effective April 1, 1996, the Sponsor eliminated the self-
directed investment option. Participants with self-directed investments
must transfer their investments into one or more of the remaining
available funds by December 31, 1996.
The ESOP Fund represents the assets transferred from the PHAMIS Inc.
Employee Stock Ownership Plan. No contributions may be made to this Fund.
On a quarterly basis, each participant's account is credited for an
allocation of each investment fund's earnings based on the participant's
weighted average account balance in each fund for the quarter. Self-
directed accounts are credited with the actual earnings from the
participant's investments.
(D) VESTING AND PAYMENT OF BENEFITS
Participants are 100% vested at all times in their contributions, the
employer matching contributions and the earnings thereon.
Amounts forfeited by participants in the ESOP who had terminated
employment prior to the merger of the ESOP with the Plan may be
reinstated upon reemployment by the Sponsor within five years of the date
of termination or withdrawal from the Plan as provided by the Plan.
Otherwise, the forfeitures will be reallocated to the remaining
participants. Forfeitures subject to reinstatement under this provision
are $13,007 at December 31, 1995.
Participants are eligible to receive distributions upon termination of
employment, upon becoming permanently disabled, upon retirement, or upon
request for a hardship withdrawal prior to termination. Distributions are
paid in a single lump sum or, if the account balance exceeds $3,500 and
at the participant's election, by payment in monthly, quarterly or annual
installments over a fixed reasonable period of time not to exceed the
combined life expectancy of the participant and beneficiary.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A) BASIS OF PRESENTATION
The accompanying financial statements have been prepared on the accrual
basis of accounting.
(B) INVESTMENTS
Investments other than loans to participants are stated at fair value
based on quoted market prices. Loans to participants are valued at cost,
which approximates fair value.
(Continued)
9
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Net appreciation or depreciation includes both realized and unrealized
gains and losses. Purchases and sales of investments are recorded on a
trade-date basis.
(C) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles and the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974 requires the use of estimates and
assumptions that affect the reported amounts and disclosure of
contingent liabilities in the accompanying financial statements and
supplemental schedules. Actual results could differ from those
estimates.
(3) RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of assets available for benefits per the
financial statements to the Form 5500 at December 31:
<TABLE>
<CAPTION>
1995 1994
----------- ---------
<S> <C> <C>
Assets available for benefits per the
financial statements $8,392,529 3,588,940
Amounts allocated to withdrawing
participants (5,110) -
----------- ---------
Assets available for benefits
per the Form 5500 $8,387,419 3,588,940
----------- ---------
</TABLE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500 for the year ended December 31, 1995:
<TABLE>
<CAPTION>
<S> <C>
Benefits paid to participants per the
financial statements $ 152,017
Amounts allocated to withdrawing
participants 5,110
---------
Benefits paid to participants
per the Form 5500 $ 157,127
---------
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date.
(4) FEDERAL INCOME TAXES
The Internal Revenue Service has determined and informed the Sponsor by a
letter dated September 20, 1995 that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue
Code (IRC). The Plan administrator believes that the Plan is currently
being operated in compliance with the applicable requirements of the IRC.
(Continued)
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(5) PLAN TERMINATION
Although it has not expressed an intent to do so, the Sponsor reserves the
right to discontinue matching contributions or to terminate the Plan at any
time. If terminated, Plan assets would be distributed to participants
according to their account balances.
(6) INVESTMENTS
The following table presents the assets held for investment purposes at
December 31:
<TABLE>
<CAPTION>
1995 1994
--------------------------------------------------
Principal Principal
amount or Invest- amount or Invest-
number of ment number of ment
shares value shares value
--------------------------------------------------
<S> <C> <C> <C> <C>
Smith Barney, Inc. Money Funds Inc.
Cash Portfolio 186,806 $ 186,806 33,187 $ 33,187
--------------------------------------------------
Certificates of deposit:
AT&T Universal Financial Corp, 5.20%,
due February 22, 1995 - - 40,000 40,000
First Federal of Michigan, 5.45%, due
March 15, 1995 - - 40,000 40,000
First Heights Bank, FSB, 4.80%, due
January 25, 1995 - - 45,000 45,000
--------------------------------------------------
Total certificates of deposit - - 125,000 125,000
--------------------------------------------------
Common stock - PHAMIS, Inc. 127,564 3,795,029 36,624 659,232
--------------------------------------------------
Mutual funds:
Bond Fund of America 21,433 297,488 13,561 172,093
Growth Fund of America 55,362 1,690,764 38,543 984,006
Washington Mutual Investors Fund 45,349 996,320 30,216 508,844
--------------------------------------------------
Total mutual funds 122,144 2,984,572 82,320 1,664,943
--------------------------------------------------
Self-directed investments of
participants 1,242,024 926,973
Loans to participants 120,562 132,174
----------- -----------
Total investments $ 8,328,993 $ 3,541,509
----------- -----------
</TABLE>
(Continued)
11
<PAGE>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
(7) ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN ASSETS AVAILABLE FOR BENEFITS
BY FUND
Assets available for benefits as of December 31 and changes in assets
available for benefits for the years then ended are allocated by fund as
follows:
<TABLE>
<CAPTION>
1995
------------------------------------------------------------------------------------------------------
PHAMIS, Washington
Money Inc. Bond Growth Mutual Self-
Market Stock Fund of Fund of Investors Directed Loan ESOP
Fund Fund America America Fund Fund Fund Fund Total
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value:
Money market funds $177,886 8,888 - 7 10 - - 15 186,806
Common stock - 1,697,118 - - - - - 2,097,911 3,795,029
Mutual funds - - 297,488 1,690,764 996,320 - - - 2,984,572
Self-directed
investments of
participants - - - - - 1,242,024 - - 1,242,024
Loans to participants - - - - - - 120,562 - 120,562
-------- --------- ------- --------- --------- --------- ------- --------- ---------
177,886 1,706,006 297,488 1,690,771 996,330 1,242,024 120,562 2,097,926 8,328,993
-------- --------- ------- --------- --------- --------- ------- --------- ---------
Receivables:
Sponsor - 23,209 - - - - - - 23,209
Participants 1,909 5,944 3,601 14,040 9,213 2,393 - - 37,100
Other 19 1,181 72 783 224 948 - - 3,227
-------- --------- ------- --------- --------- --------- ------- --------- ---------
1,928 30,334 3,673 14,823 9,437 3,341 - - 63,536
-------- --------- ------- --------- --------- --------- ------- --------- ---------
Assets available
for benefits $179,814 1,736,340 301,161 1,705,594 1,005,767 1,245,365 120,562 2,097,926 8,392,529
-------- --------- ------- --------- --------- --------- ------- --------- ---------
(Continued)
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
1995
------------------------------------------------------------------------------------------------------
PHAMIS, WASHINGTON
MONEY INC. BOND GROWTH MUTUAL SELF-
MARKET STOCK FUND OF FUND OF INVESTORS DIRECTED LOAN ESOP
FUND FUND AMERICA AMERICA FUND FUND FUND FUND TOTAL
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to assets
available for benefits
attributed to:
Investment income:
Dividends $ - - 19,083 129,501 69,915 11,780 - - 230,279
Interest 8,083 2,417 - - - 11,420 13,148 - 35,068
Net appreciation in
fair value of
investments:
Common stock - 639,275 - - - - - 167,481 806,756
Mutual funds - - 21,409 173,247 172,899 - - - 367,555
Self-directed
investments of
participants - - - - - 213,519 - - 213,519
-------- --------- ------- --------- --------- --------- ------ --------- ---------
- 639,275 21,409 173,247 172,899 213,519 - 167,481 1,387,830
-------- --------- ------- --------- --------- --------- ------ --------- ---------
8,083 641,692 40,492 302,748 242,814 236,719 13,148 167,481 1,653,177
-------- --------- ------- --------- --------- --------- ------ --------- ---------
Contributions:
Sponsor - 164,885 - - - - - - 164,885
Participants 62,004 202,889 97,865 381,499 222,905 104,948 - - 1,072,110
Rollovers 7,588 11,272 5,254 44,498 54,122 12,255 - - 134,989
-------- --------- ------- --------- --------- --------- ------ --------- ---------
69,592 379,046 103,119 425,997 277,027 117,203 - - 1,371,984
Transfer from PHAMIS
Inc. Employee Stock
Ownership Plan - - - - - - - 1,930,445 1,930,445
-------- --------- ------- --------- --------- --------- ------ --------- ---------
Total additions 77,675 1,020,738 143,611 728,745 519,841 353,922 13,148 2,097,926 4,955,606
-------- --------- ------- --------- --------- --------- ------ --------- ---------
Net interfund transfers (6,498) 48,376 (17,202) (7,765) (33,178) 41,027 (24,760) - -
-------- --------- ------- --------- --------- --------- ------ --------- ---------
Deductions from assets
available for benefits
attributed to benefits
paid to participants 41,662 11,344 - 13,578 4,134 81,299 - - 152,017
-------- --------- ------- --------- --------- --------- ------ --------- ---------
Net increase
(decrease) in
assets available
for benefits 29,515 1,057,770 126,409 707,402 482,529 313,650 (11,612) 2,097,926 4,803,589
Assets available for
benefits at beginning of
year 150,299 678,570 174,752 998,192 523,238 931,715 132,174 - 3,588,940
-------- --------- ------- --------- --------- --------- ------ --------- ---------
Assets available for
benefits at end of year $179,814 1,736,340 301,161 1,705,594 1,005,767 1,245,365 120,562 2,097,926 8,392,529
-------- --------- ------- --------- --------- --------- ------ --------- ---------
(Continued)
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
NOTES TO FINANCIAL STATEMENTS
-----------------------------------------------------------------------------------------------------------------------------------
1994
------------------------------------------------------------------------------------------------------
PHAMIS, Bond Growth Washington
Money Inc. Fund Fund Mutual Self-
Market Stock of of Investors Directed Loan
Fund Fund America America Fund Fund Fund Total
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value:
Money market funds $ 22,322 10,834 2 20 9 - - 33,187
Certificates of deposit 125,000 - - - - - - 125,000
Common stock - 659,232 - - - - - 659,232
Mutual funds - - 172,093 984,006 508,844 - - 1,664,943
Self-directed
investments of
participants - - - - - 926,973 - 926,973
Loans to participants - - - - - - 132,174 132,174
-------- -------- ------- ------- ------- ------- ------- ---------
147,322 670,066 172,095 984,026 508,853 926,973 132,174 3,541,509
-------- -------- ------- ------- ------- ------- ------- ---------
Receivables:
Sponsor 204 6,655 517 3,581 1,863 36 - 12,856
Participants 2,067 1,753 2,116 14,215 7,855 3,538 - 31,544
Other 42 96 24 864 173 1,168 - 2,367
-------- -------- ------- ------- ------- ------- ------- ---------
2,313 8,504 2,657 18,660 9,891 4,742 - 46,767
Interfund
receivable/payable - - - (4,494) 4,494 - - -
Accrued interest 664 - - - - - - 664
-------- -------- ------- ------- ------- ------- ------- ---------
Assets available
for benefits $150,299 678,570 174,752 998,192 523,238 931,715 132,174 3,588,940
-------- -------- ------- ------- ------- ------- ------- ---------
(Continued)
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
NOTES TO FINANCIAL STATEMENTS
-----------------------------------------------------------------------------------------------------------------------------------
1994
------------------------------------------------------------------------------------------------------
PHAMIS, Bond Growth Washington
Money Inc. Fund Fund Mutual Self-
Market Stock of of Investors Directed Loan
Fund Fund America America Fund Fund Fund Total
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to assets
available for benefits
attributed to:
Investment income:
Dividends $ 1,217 1,026 12,190 44,447 27,484 14,025 - 100,389
Interest 3,398 - - - - 875 8,862 13,135
Net appreciation
(depreciation) in
fair value of
investments:
Common stock - 464,696 - - - - - 464,696
Mutual funds - - (19,847) (40,841) (25,296) - - (85,984)
Self-directed
investments of
participants - - - - - 85,113 - 85,113
-------- ------- ------- ------- ------- ------- ------- ---------
- 464,696 (19,847) (40,841) (25,296) 85,113 - 463,825
-------- ------- ------- ------- ------- ------- ------- ---------
4,615 465,722 (7,657) 3,606 2,188 100,013 8,862 577,349
-------- ------- ------- ------- ------- ------- ------- ---------
Contributions:
Sponsor 1,899 45,819 4,970 22,479 12,912 6,169 - 94,248
Participants 44,246 39,114 58,624 355,450 169,650 72,985 - 740,069
Rollovers 374 883 - 17,048 13,978 41,643 - 73,926
-------- ------- ------- ------- ------- ------- ------- ---------
46,519 85,816 63,594 394,977 196,540 120,797 - 908,243
-------- ------- ------- ------- ------- ------- ------- ---------
Total additions 51,134 551,538 55,937 398,583 198,728 220,810 8,862 1,485,592
-------- ------- ------- ------- ------- ------- ------- ---------
Net interfund transfers (27,003) 18,327 (35,599) 57,037 (23,791) (27,233) 38,262 -
-------- ------- ------- ------- ------- ------- ------- ---------
Deductions from assets
available for benefits
attributed to benefits
paid to participants 2,699 - 1,274 38,716 11,334 19,056 - 73,079
-------- ------- ------- ------- ------- ------- ------- ---------
Net increase in
assets available
for benefits 21,432 569,865 19,064 416,904 163,603 174,521 47,124 1,412,513
Assets available for
benefits at beginning of
year 128,867 108,705 155,688 581,288 359,635 757,194 85,050 2,176,427
-------- ------- ------- ------- ------- ------- ------- ---------
Assets available for
benefits at end of year $150,299 678,570 174,752 998,192 523,238 931,715 132,174 3,588,940
-------- ------- ------- ------- ------- ------- ------- ---------
</TABLE>
15
<PAGE>
Schedule 1
----------
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
LINE 27a-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Description of
investment, including
maturity date, rate
Identity of issue, of interest,
borrower, lessor, or collateral, par or
similar party maturity value Cost Current value
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
* Smith Barney, Inc. Money Funds Inc. Cash
Portfolio $ 186,806 186,806
American Funds Bond Fund of America,
21,433 shares 292,198 297,488
American Funds Growth Fund of
America, 55,362 shares 1,537,616 1,690,764
American Funds Washington Mutual
Investors Fund,
45,349 shares 852,136 996,320
* PHAMIS, Inc. Common stock, 127,564
shares 896,042 3,795,029
Various Self-directed
investments of
participants 1,121,618 1,242,024
Various Participant loans, 7%
to 10% - 120,562
- --------------------------------------------------------------------------------
</TABLE>
* Party in interest of the Plan as defined by Section 3(14) of ERISA.
16
<PAGE>
Schedule 2
----------
PHAMIS INC.
SALARY SAVINGS AND DEFERRAL PLAN
LINE 27d-SCHEDULE OF REPORTABLE TRANSACTIONS(1)
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
CURRENT VALUE
PURCHASE SELLING OF ASSET ON NET
IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE COST OF ASSET TRANSACTION DATE GAIN
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Smith Barney, Inc. Money Funds Inc. Cash $ 1,589,968 - 1,589,968 1,589,968 -
Portfolio
Smith Barney, Inc. Money Funds Inc. Cash - 1,436,349 1,436,349 1,436,349 -
Portfolio
American Funds Growth Fund of America 647,493 - 647,493 647,493 -
American Funds Growth Fund of America - 119,114 100,216 119,114 18,898
American Funds Washington Mutual 351,532 - 351,532 351,532 -
Investors Fund
American Funds Washington Mutual - 39,999 38,228 39,999 1,771
Investors Fund
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Reportable transactions as defined in the Department of Labor's reporting
regulations consist of (a) a single transaction in excess of 5% of the
current value of Plan assets, (b) a series of transactions with or in
conjunction with the same person, involving property other than securities,
which amount in the aggregate to more than 5% of the current value of Plan
assets, (c) a series of transactions with respect to securities of the same
issue which amount in the aggregate to more than 5% of the current value of
total Plan assets and (d) any transaction with respect to securities with or
in conjunction with a person if a prior or subsequent single transaction has
occurred with respect to securities with or in conjunction with that same
person in an amount in excess of 5% of the current value of Plan assets.
The current value of Plan assets, to apply the definition of reportable
transactions, is determined at the beginning of the Plan year.
17
<PAGE>
CONSENT OF INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
- -------------------------------------------------------------------------------
THE BOARD OF DIRECTORS:
PHAMIS, INC.:
WE CONSENT TO INCORPORATION BY REFERENCE IN THE REGISTRATION STATEMENT (NO. 33-
87798) ON FORM S-8 OF PHAMIS, INC. OF OUR REPORT DATED APRIL 4, 1996 RELATING TO
THE STATEMENTS OF ASSETS AVAILABLE FOR BENEFITS OF PHAMIS INC. SALARY SAVINGS
AND DEFERRAL PLAN AS OF DECEMBER 31, 1995 AND 1994, AND THE STATEMENTS OF
CHANGES IN ASSETS AVAILABLE FOR BENEFITS FOR THE YEARS THEN ENDED, AND THE
RELATED SUPPLEMENTARY SCHEDULES FOR THE YEAR ENDED DECEMBER 31, 1995, WHICH
REPORT APPEARS IN THE DECEMBER 31, 1995 ANNUAL REPORT ON FORM 11-K OF PHAMIS
INC. SALARY SAVINGS AND DEFERRAL PLAN.
/s/ KPMG Peat Marwick LLP
SEATTLE, WASHINGTON
June 25, 1996
18
