<PAGE>   1
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549


                                  FORM 10-Q

           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934



For the quarterly period ended  September 30, 1995
                               --------------------------------------

Commission file number     0-11404
                       ----------------------------------------------


                     PACIFIC INTERNATIONAL SERVICES CORP.
            (Exact name of registrant as specified in its charter)


          California                                          95-2877371
          ----------                                          ----------
(State or other jurisdiction of                           (I.R.S. employer
incorporation or organization)                            identification no.)


1600 Kapiolani Blvd., Suite 825, Honolulu, Hawaii
-------------------------------------------------
     (Address of principal executive office)

Registrant's telephone number, including area code (808) 926-4242
                                                   --------------

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 such
filing requirements for the past 90 days.    Yes  X   No
                                                 ---     ---

Indicate the number of shares outstanding for each of the issuer's classes of
common stock, as of the latest practicable date.


          Class                       Shares outstanding at November 14, 1994
      ------------                    ---------------------------------------
      Common Stock                                    8,079,800




                                                                 Page 1 of 14

<PAGE>   2
                     PACIFIC INTERNATIONAL SERVICES CORP.

                                    INDEX



PART I.         FINANCIAL INFORMATION                                    Page
                                                                         ----
Item 1.         Condensed Consolidated Balance Sheets..................    3
                Condensed Consolidated Statements of Operations........    4
                Condensed Consolidated Statements of Operations........    5
                Condensed Consolidated Statements of Cash Flows........    6
                Note to Condensed Consolidated Financial Statements....    8

Item 2.         Management's Discussion and Analysis of Financial
                Condition and Results of Operations....................    9

PART II.        OTHER INFORMATION

Item 6.         Exhibits and Reports on Form 8-K.......................   13
                Computation of Earnings Per Common Share...............   14
                Signatures.............................................   15




                                                                       Page 2
<PAGE>   3
                     PACIFIC INTERNATIONAL SERVICES CORP.

                    CONDENSED CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                            September 30, 1995       December 31, 1994
                                                            -------------------      ------------------
                                                               (Unaudited)
<S>                                                             <C>                     <C>
ASSETS
Cash and cash equivalents                                      $  1,082,853             $   831,952
Receivables, net                                                 10,570,176              10,023,512
Automobile dealership vehicle  
 inventories                                                      7,922,345               4,961,600
Inventories and prepaid expenses                                  1,216,688                 899,453
Rental vehicles, at cost, less     
  accumulated depreciation                                        6,773,343              42,367,410
Furniture, equipment and
  leasehold improvements, net
  of accumulated depreciation
  and amortization                                                7,530,374               8,149,846
Other assets                                                      2,001,423               2,088,462
                                                               ------------             -----------
        Total assets                                           $ 37,097,202             $69,272,235
                                                               ============             ===========
LIABILITIES AND SHAEHOLDERS' EQUITY

Accounts payable                                               $  8,761,148             $ 5,744,507
Accrued expenses and other liabilities                            6,148,293               8,152,270
Senior debt                                                      17,285,221              48,034,463
Convertible subordinated debentures                               5,250,000               5,250,000
                                                                -----------             -----------
        Total liabilities                                        37,444,662              67,181,240
                                                                -----------             -----------
Preferred stock with no par value,
  authorized 15,000,000 shares; none is                                  --                      --
Common stock, stated value
  $0.10 pe share, authorized
  50,000,000 shares, issued and
  outstanding 8,079,800 shares                                      807,980                 807,980
Additional paid-in capital                                        9,102,181               9,102,181
Accumulated deficit                                            (10,257,621)             (7,819,166)
                                                               ------------             -----------
        Total shareholders' equity                                 (347,460)              2,090,995
                                                               ------------             -----------
        Total liabilities and shareholders'
          equity                                               $ 37,097,202             $69,272,235
                                                               ============             ===========
</TABLE>

See accompanying Note to Condensed Consolidated Financial Statements.     Page 3


                                                                                


<PAGE>   4
                     PACIFIC INTERNATIONAL SERVICES CORP.

               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)

<TABLE>
<CAPTION>           
                                               Three Months Ended September 30,
                                               --------------------------------
                                                  1995                 1994
                                               -----------          -----------
<S>                                            <C>                  <C>
Operating revenues:
  Vehicle rental                               $13,316,356          $14,871,537
  Vehicle sales                                 11,560,818            9,983,088
                                               -----------          -----------
      Total operating revenues                  24,877,174           24,854,625
                                               -----------          -----------
                                               
Operating costs and expenses:                  
  Cost of vehicles sold                          8,722,269            7,333,551
  Depreciation of rental vehicles                1,547,141            1,907,942
  Interest on fleet debt                           330,459              665,125
  Other direct fleet                             4,222,125            2,545,219
  Personnel                                      3,310,346            3,506,238
  Occupancy                                      2,293,928            2,294,794
  Other direct operating                         2,810,230            3,879,971
  Other selling, general and                   
    administrative                               1,867,433            1,901,147
                                               -----------          -----------
      Total operating costs and expenses        25,103,931           24,033,987
                                               -----------          -----------
        Income from operations                    (226,757)             820,638
                                               
Interest income                                      5,974               14,418
Other interest expense                            (240,057)            (225,085)
Other, net                                               -              (29,853)
                                               -----------          -----------
  Net income                                      (460,840)             580,118
                                               ===========          ===========
Earnings per common share:                     $     (0.06)         $      0.07
                                               ===========          ===========
</TABLE>



See accompany Note to Condensed Consolidated Financial Statement          Page 4







<PAGE>   5
                     PACIFIC INTERNATIONAL SERVICES CORP.

               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)

<TABLE>
<CAPTION>
                                                    Nine Months Ended
                                                       September 30,
                                                ---------------------------
                                                   1995            1994
                                                -----------     -----------
<S>                                             <C>             <C>
Operating revenues:
  Vehicle rental                                $37,851,906     $42,056,236
  Vehicle sales                                  34,258,179      30,917,012
                                                -----------     -----------
      Total operating revenues                   72,110,085      72,973,248
                                                -----------     -----------

Operating costs and expenses:
  Cost of vehicles sold                          25,916,541      23,180,748
  Depreciation of rental vehicles                 4,755,283       4,809,280
  Interest on fleet debt                          1,723,454       1,807,566
  Other direct fleet                             11,142,895       7,995,644
  Personnel                                      10,046,428      10,822,994
  Occupancy                                       6,605,209       6,597,923
  Other direct operating                          8,253,730      10,476,860
  Other selling, general and
    administrative                                5,579,768       5,506,375
                                                -----------     -----------
      Total operating costs and expenses         74,023,308      71,197,390
                                                -----------     -----------

        Income from operations                   (1,913,223)      1,775,858

Interest income                                      26,042          39,685
Other interest expense                             (683,312)       (655,576)
Other, net                                          132,040         (65,865)
                                                -----------     -----------

  Net income                                    $(2,438,453)    $ 1,094,102
                                                ===========     ===========

Earnings per common share:                      $     (0.30)    $      0.13
                                                ===========     ===========
</TABLE>






See accompanying Note to Condensed Consolidated Financial Statements     Page 5





<PAGE>   6
                     PACIFIC INTERNATIONAL SERVICES CORP.

               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)

<TABLE>
<CAPTION>
                                                    Nine Months Ended
                                                       September 30,
                                                ---------------------------
                                                   1995            1994
                                                -----------     -----------
<S>                                             <C>             <C>
Cash flows from operating activities:
  Net income (loss)                             $(2,438,453)    $ 1,094,102
  Adjustments to reconcile net
    income to net cash provided
    by operating activities:
      Loss on sale of rental vehicles               692,941         294,227
      Depreciation of rental vehicles and
        amortization of related costs             5,055,561       6,488,919
      Depreciation and amortization, other          881,414         789,313
      Provision for losses on rental vehicles       830,255         984,918
      Provision for losses on receivables           453,821         218,039
      Provision for self-insurance                  103,994       1,676,067
      Change in assets and liabilities:
        Receivables                              (1,000,485)     (1,556,161)
        Automobile dealership vehicle
          inventories                            (2,960,745)      1,117,755
        Inventories, prepaid exp. and other
          assets                                   (280,196)       (336,072)
        Accounts payable                          3,016,641       1,035,836
        Accrued expenses and other liabilities   (2,107,921)     (2,881,208)
        Notes payable for automobile
          dealership vehicle inventories         16,246,957      11,215,588
                                                -----------     -----------
            Net cash provided by
              operating activities               18,493,784      20,141,323
                                                -----------     -----------
Cash flows from investing activities:
  Proceeds from the sale of rental vehicles      11,955,943       8,954,302
  Purchases of rental vehicles                     (536,879)     (1,446,985)
  Proceeds from the sale of furniture,
    equipment, and leasehold improvement            160,476              --
  Additions to furniture, equipment and
    leasehold improvements                         (326,433)     (1,277,623)
                                                -----------     -----------
            Net cash used in
              investing activities               11,253,107       6,229,694
                                                -----------     -----------
Cash flows from financing activities:
  Principal payments of senior debt             (29,495,990)    (26,566,287)
                                                -----------     -----------
            Net cash used in
              financing activities              (29,495,990)    (26,566,287)
                                                -----------     -----------
            Net increase (decrease) in cash         250,901        (195,270)

Cash and cash equivalents at beginning of
  period                                            831,952       1,719,123
                                                -----------     -----------

Cash and cash equivalents at end of period      $ 1,082,853     $ 1,523,853
                                                ===========     ===========
</TABLE>





See accompanying Note to Condensed Consolidated Financial Statements     Page 6








<PAGE>   7
                   PACIFIC INTERNATIONAL SERVICES CORP.
          Condensed Consolidated Statements of Cash Flows, continued


Supplemental schedule of noncash investing and financing activities:

<TABLE>
<CAPTION>
                                                Nine Months Ended September 30,
                                                -------------------------------
                                                    1995              1994
                                                -------------     -------------
<S>                                             <C>               <C>
Senior debt incurred for additions
  to rental vehicles                            $    373,869      $ 27,456,175
                                                                  
Senior debt incurred from conversion of
  lease obligations                             $          -      $  1,400,000

Rental vehicle purchases not
  yet financed                                  $     58,592      $          -

Reduction of senior debt resulting from
  turnback of rental vehicles                   $(18,026,070)     $(24,801,476)

Capital lease obligation incurred
  from purchase of equipment                    $     93,400      $     72,911
</TABLE>



                                                                         Page 7

<PAGE>   8
                     PACIFIC INTERNATIONAL SERVICES CORP.


             NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)



1.      Basis of Presentation

        In the opinion of management, the unaudited financial information
        included in this report contains all adjustments, consisting of normal
        recurring adjustments only, necessary for a fair presentation of the
        results of operations for the interim periods covered and the financial
        condition of the Company at the dates of the balance sheets.  The
        operating results for the interim periods are not necessarily
        indicative of the results to be expected for the full fiscal year.  The
        accounting policies followed by the Company are set forth in Note 1 to
        the financial statements included in the Company's Annual Report on
        Form 10-K for the year ended December 31, 1994.
        
        Certain prior year amounts have been reclassified to conform to 1995
        presentation.
        







                                                                          Page 8




<PAGE>   9
         Management's Discussion and Analysis of Financial Condition
                          and Results of Operations




Pacific International Services Corp., the ("Company"), reported a consolidated
net loss of $460,840 or $0.06 per share for the third quarter of 1995, compared
to net income of $580,118 or $0.07 per share for the same quarter last year. 
For the nine months ended September 30, 1995, the Company reported a net loss
of $2,438,453 or $0.30 per share, compared to net income of $1,094,102 or $0.13
per share for the same period last year.

Operating revenues from the Company's vehicle rental division for the three
months ended September 30, 1995, totaled $13,316,356, a decrease of 10.46% from
revenues of $14,871,537 for the third quarter of 1994.  The decrease in revenue
for the quarter resulted from lower rental day volume compared to the same
period in 1994, continuing a decline that also affected the first and second
quarter.  Rental division operating revenues totaled $37,851,906 for the nine
month period ended September 30, 1995, versus $42,056,236 for the prior year
comparable period.  Although the reduction in unit volume was in part a result
of reduced average fleet levels, which affected most of the Company's markets,
the sharpest declines were in the Company's business generated through
reservations from Dollar Systems, Inc. on the U.S. mainland, and from the local
impulse market.  The Company continued to make progress in increasing its
average daily rental yield, however the increase of approximately 6.4% in third
quarter yield was not sufficent to offset lower unit volume.

Total direct fleet holding costs, which include lease payments, depreciation,
interest, car sales and other fleet expenses (freight, dealer profit and
license) increased by 8% for the third quarter of 1995 compared to the same
period in 1994, based on an average fleet size 18% lower than in 1994,
reflecting the continuing significant increase in holding costs on a per unit
basis.  Total direct fleet holding costs were $18,179,491 and $16,559,857 for
the nine months ended September 30, 1995 and 1994, respectively.

Other operating costs and expenses, including personnel, occupancy and other
direct operating costs decreased by almost $930,000 for the three months ended
September 30, 1995 compared to the same period in 1994.  Legal & accounting
expense for the three months ended September 30, 1995 were $554,208 as compared
to $188,846 in the same period of last year, primarily due to expenses incurred
for the proposed sale of the Company's vehicle rental division to Dollar
Systems, Inc.

The Company's vehicle sales operations generated revenues of $34,258,179 and
$11,560,818 for the nine months and three months ended September 30, 1995, as
compared with $30,917,012 and $9,983,088 for the same respective periods in
1994.  The increase in revenues from vehicle sales reflects price increases on
new vehicle sales and higher sales of used vehicles.  Operating expenses
related to the Company's vehicle sales division increased from prior year
levels in proportion to the revenue increases.




                                                                          Page 9


<PAGE>   10
                             Financial Condition


Due to the Company's continuing financial difficulties, in March of 1995 after
lengthy negotiations, the Company obtained a commitment in principle from
Dollar for certain assistance for 1995 (the "1995 Assistance Commitment"). 
Under this commitment, the Company would have received substantial economic
benefits and certain disputes between the Company and Dollar would have been
resolved.  However, the parties were unable to agree upon the final
documentation with respect to the 1995 Assistance Commitment.

Pending further negoitations, the Company withheld certain payments asserted by
Dollar to be owing to Dollar under the License Agreement (the "License
Agreement").  Dollar filed a legal action in U.S. District Court to compel the
Company to execute the documentation proposed by Dollar to embody its
understanding of the 1995 Assistance Commitment.  Shortly thereafter, Dollar
sent the Company notices purporting to terminate the License Agreement and the
Master Lease Agreement dated October 22, 1993 between Dollar and the Company. 
The Company subsequently commenced its own legal action against Dollar for
damages and injunctive relief based on violations of the License Agreement and
Hawaii law which had been the subject of extensive discussions between the
Company and Dollar.  Subsequent discussions led to execution of a standstill
agreement, later amended and extended, and, finally to negotiation of the
Settlement Agreement (the "Settlement Agreement").  The parties have agreed to
suspend all litigation without prejudice but may choose to recommence
proceedings should the Transactions (the "Transactions") fail to close.

Under the terms of the Settlement Agreement, dated July 17, 1995 and as amended
by the Sixth Amendment to Settlement Agreement dated October 27, 1995, the
parties agreed to stay the litigation and signed documents under which Dollar
Systems, Inc. will acquire substantially all of the assets and certain
liabilities of the Company's vehicle rental division.  This transaction is
subject to due diligence review and other conditions and to consents and
approvals of certain persons, including the Company's shareholders and/or
bondholders.  In addition, Dollar Systems, Inc. has the unqualified right not
to close the transaction at any time prior to the actual closing.  The assets
and liabilities of the Company's vehicle sales division, as well as certain
other liabilities and obligations, will remain with the Company.  The parties
will also release various claims against each other.  The transaction is
scheduled to close by November 30, 1995.  In the meantime, the Company
continues to operate the vehicle rental division, including efforts to increase
revenue, utilization and yield per rental day, and to control its operating
costs.

While the transaction is pending, the Company is incurring and will continue to
incur substantial transaction costs including legal and accounting and other
professional fees.  Although Dollar Systems, Inc. has agreed to certain interim
financial assistance, there is no assurance of continuing support from Dollar
Systems, Inc. if the transaction dos not close as planned.  If the transaction
does not close, and further assistance from Dollar Systems, Inc. is not made
available, it is doubtful that the vehicle rental operations and PISC could
continue as going concerns, although the Company's vehicle sales subsidiary
should continue to be viable.

In connection with the Sale, the Company announced that is has commenced an
Exchange Offer (the "Exchange Offer") for $5,250,000 in principal amount of the
Company's 10% Convertible Subordinated Debentures due September 1, 2007 (the
"Old Debentures").


                                                                        Page 10


<PAGE>   11
Under the Exchange Offer, the Company will invite the holders of its Old
Debentures to tender $1.00 in face amount of Old Debentures for (i) $0.50 in
cash (the "Cash Payment"), (ii) 0.769505 shares of the Company's common stock;
and (iii) a pro rata share of new debentures (the "New Debentures") of the
Company in an aggregate principal amount equal to $1,050,000 less the face
amount of any Old Debentures not tendered and less the original principal
amount, if any, of a new promissory note which may be issued to Dollar as part
of the Sale (the "Dollar Note"), upon and subject to the terms and conditions
set forth in the Exchange Offer and in the related Letter of Transmittal.

Accrued interest will not be paid on the Old Debentures tendered and accepted
for exchange.  The Company will not accept for exchange less than $4,988,000 in
face amount of outstanding Old Debentures and will accept up to 100% of the
outstanding Old Debentures.  The Exchange Offer prorations period and
withdrawal rights will expire at midnight New York City time on November 29,
1995, unless the Exchange Offer is extended by the Company.

The Company has been advised that Scott H. Lang is the only director of the
Company that owns any Old Debentures.  Mr. Lang owns $73,000 in principal
amount of Old Debentures and has indicated to the Company that he will tender
the full amount of such Old Debentures.

Goergeson & Company Inc. will serve as Information Agent for the Exchange
Offer, and First Fidelity Bank, N.A. will serve as Depository.

In order to expedite closing of the proposed Sale and Exchange Offer in the
event that the minimum lender of at least 95% of the face amount of Old
Debentures is not received, the Company is also soliciting (the "Solicitation")
from the holders of its Old Debentures, as of the close of business on October
27, 1995, acceptances (the "Plan Acceptances") of a prepackaged plan of
reorganization (the "Plan") of the Company pursuant to which the Old Debentures
would be exchanged for consideration described below.  Such Solicitation of
acceptances for the Plan is being made, and may only be made, pursuant to the
Solicitation and Disclosure Statement For Prepackaged Plan of Reorganization
issued by the Company dated October 31, 1995.

If the Exchange Offer is not consummated but the requisite Plan Acceptances are
obtained, the Company currently intends to commence promptly a case under
Chapter 11 of title 11 of the United States Code and rules and regulations
promulgated thereunder and to use such Plan Acceptances to obtain timely
confirmation of the Plan by a United States Bankruptcy Court of competent
jurisdiction (the "Bankruptcy Court").

Under the prepackaged plan of reorganization, the Company would, with the
court's approval, maintain its ordinary course of business, including normal
payment of its trade creditors.  If the Plan is confirmed by the Bankruptcy
Court, each holder of the Old Debentures (whether or not such holder voted to
accept the Plan) will receive for each $1.00 of face amount of Old Debentures
(i) its pro rata portion of the cash proceeds from the proposed Sale minus
certain allowed priority and all allowed claims, (ii) 769505 shares of the
Company's common stock and (iii) its pro rata portion of the New Debentures
less the original principal amount of the Dollar Note.  The Company anticipates
that the consideration received by a holder of an Old Debenture through the
Plan would be less than the consideration received by a holder of an Old
Debenture under the Exchange Offer.




                                                                         Page 11

<PAGE>   12
The Company is currently in negotiation with the Department of Transportation
(DOT) to settle certain asserted but unbilled claims for past rents and
proposed rent redeterminations.  The Company has disputed the DOT's claim
which, in aggregate, could be as much as $920,000.  Although management
anticipates a timely and favorable outcome, if not resolved these claims could
have an adverse impact on the closing of the proposed Sale and/or on the
consummation of the Prepackaged Plan.

On September 14, 1995, the Company was notified by the NASDAQ Stock Market,
Inc. that the Company was in non-compliance with its capital / surplus and bid
price requirements.  Failure to comply results in a delisting from the NASDAQ
Small Cap Market.  On October 5, 1995, the Company participated in a telephonic
conference requesting an exception to the above mentioned requirements. 
Subsequent to that conference, the Company was granted an exception to October
15, 1995.  Most recently, the Company has been granted an extension until
November 30, 1995.

The Company is currently under excise tax and various other tax audits for the
fiscal years 1986 to 1994.  General excise taxes for the fiscal years ending
1990 and 1991 are excluded.  A condition prior to closing is that the Company
has satisfied all its requirements for the above mentioned years and that a tax
clearance be issued by the State of Hawaii.  The Company has been working with
the State auditors and anticipates clearance prior to closing.

The Company has also obtained a verbal indication from FINOVA Capital
Corporation of its willingness to wave one principal payment in the amount of
approximately $225,000 in order for the Company to meet certain condition to
close.



                                                                        Page 12

<PAGE>   13
                         PART II.  OTHER INFORMATION



Item 6.         Exhibits and Reports on Form 8-K

                (a)     The Exhibits noted herein as previously filed are
                        hereby incorporated as an exhibit to this document by
                        this reference as though set forth herein:

                        Exhibit 11 - Statement re:  Computation of Earnings
                        Per Share

                (b)     None





                                                                        Page 13

<PAGE>   14
                                  SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this repot to be signed on
its behalf of the undersigned thereunto duly authorized.



                                    PACIFIC INTERNATIONAL SERVICES CORP.



                                    By:  /s/ Alan M. Robin
                                         ------------------------------------
                                         Alan M. Robin
                                         President and Chief Execuive Officer
                                  
                                  

                                    By:  /s/ Richard Bauman
                                         ------------------------------------
                                         Richard Bauman
                                         Chief Financial Officer
                                         (Principal Financial Officer)



                                   
                                    By:  /s/ Tyrus Kawashima
                                         ------------------------------------
                                         Tyrus Kawashima
                                         Controller and
                                         Chief Accounting Officer
 November 14, 1995



                                                                     Page 14