UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
In the Matter of .
.
Entergy Corporation .
Entergy Enterprises, Inc. .
Entergy Integrated Solutions, Inc. .
(formerly Entergy Systems and Service, Inc. .
and prior thereto Systems and .
Service U.S.A., Inc.) . CERTIFICATE PURSUANT
. TO RULE 24
File No. 70-7947 .
File No. 70-8509 .
.
(Public Utility Holding Company .
Act of 1935) .
Pursuant to Rule 24 promulgated by the Securities and
Exchange Commission (SEC) under the Public Utility Holding
Company Act of 1935, as amended, modified by the application(s)-
declaration(s) in the above referenced files and the related
orders dated December 28, 1992 and July 27, 1995 (collectively,
the "Orders"), this is to certify that the following paragraphs
report transactions carried out by Entergy Integrated Solutions,
Inc. (EIS)<FN1> during the three (3) months ended June 30, 1996
pursuant to the authorization of the SEC and provide such other
information as is required to be reported in accordance with the
provisions of the Orders.
I. Development of Energy Efficiency Technology and
Manufacturing Processes of Systems & Service International,
Inc. (SASI)
During the second quarter of 1996, SASI failed to make
additional progress in lowering overall production costs. Given
anticipated production levels and the cost reduction measures
previously implemented by SASI, EIS does not anticipate that any
additional significant cost reductions will be achieved by SASI
in the foreseeable future.
II. Use of SASI's Products Within the BASE Region
EIS has utilized the Monitor and the Ballast in energy
service applications in the "Base Region." The following is a
summary which indicates such installations and projected energy
conservation which will result in savings of generating capacity.
Number of Annual Projected
Installations Savings
kw's kwh's
261 1,709.60 8,271,315.19
III. Summary of Total Assets and Revenues of EIS By Type of
Activity
Energy Management Funding of other
& DSM Consulting Contractors
Total Assets * $78,175,815.25
Total Revenues $5,801,201.00
* Excludes assets that are not appropriately allocated to any
specific business activity, but which support EIS's general
business operations.
IV. Summary of Total Assets and Revenues of EIS By Geographic
Region
Base Region U.S. (excluding World (excluding
Base Region) U.S.)
Total Assets ** $21,780,768.60 $35,116,978.57
Total Revenues $2,061,206.02 $3,739,994.98
** Excludes assets that are not dedicated to EIS's business
activities in any specific geographic region.
V. Financial Statements
EIS's unaudited Balance Sheets, as of June 30, 1996, and as
of the reporting date, respectively, and Income Statements for
the three month periods ending June 30, 1996, and for the
calendar year to date, respectively, are attached hereto.
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed this 14th day of November, 1996.
Entergy Corporation
Entergy Enterprises, Inc.
Entergy Integrated Solutions, Inc.
By: /s/ Michael G. Thompson
Michael G. Thompson
Senior Vice President, General Counsel
and Secretary
_______________________________
<FN1> By amendment to its Certificate of Incorporation, Entergy
Systems and Service, Inc. changed its name to "Entergy Integrated
Solutions, Inc.", effective May 7, 1996
<TABLE>
<CAPTION>
Entergy Systems and Service, Inc.
Statement of Operations
Quarter Ended June 30, 1996
(Unaudited)
<S> <C>
Revenue $ 5,801,201.00
Operating Expense 5,445,886.00
---------------
Gross Margin 355,315.00
Selling Expense 3,890,621.00
Marketing 693,562.00
Administrative & General Expense 4,792,551.00
Other Expense/Income 1,813,244.00
---------------
Net Operating Profit (Loss) Before Taxes (10,834,663.00)
Income taxes (3,792,132.00)
---------------
Net Profit (Loss) $ (7,042,531.00)
===============
</TABLE>
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
June 30, 1996
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 9,882,355.24
Accounts receivable 1,884,179.37
Other current assets 3,902,950.70
---------------
Total current assets 15,669,485.31
---------------
Investments:
Investment in SASI, Inc. -
Note receivable - SASI, Inc. 2,430,000.00
HES service contracts, net 3,640,096.50
---------------
Total investments 6,070,096.50
---------------
Fixed Assets:
Furniture and equipment, net 10,745,104.29
Intangible assets, net 496,801.36
Equipment inventory held for installation 21,278,068.08
Installations in process 8,843,457.83
Installed equipment 42,530,013.47
Total fixed assets 83,893,445.03
---------------
Deferred Debits:
Miscellaneous deferred debits 8,076,513.53
SASI technology 8,673,913.55
Deferred income taxes 7,618,021.80
Other assets, net 2,723,982.36
---------------
Total deferred debits 27,092,431.24
---------------
TOTAL ASSETS $ 132,725,458.08
===============
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
June 30, 1996
(Unaudited)
LIABILITIES AND CAPITAL
Current & accrued liabilities:
Accounts payable $ 739,936.41
Accrued liabilities 5,476,231.40
Current portion of capital lease obligation 123,155.93
---------------
Total current & accrued liabilities 6,339,323.74
---------------
Long-term liabilities:
Note payable - Entergy Corp. -
Capital lease obligations 137,293.30
Other long-term liabilities 6,568,752.00
---------------
Total long-term liabilities 6,706,045.30
---------------
Deferred Credits:
Service contract revenue 31,088,079.25
---------------
Total deferred credits 31,088,079.25
---------------
Capital:
Common stock, no par value,
50,000 shares authorized
13,500 shares issued and outstanding 13,500,000.00
Paid in capital 135,700,000.00
Accumulated deficit (60,607,990.21)
---------------
Total capital 88,592,009.79
---------------
Total liabilities and capital $ 132,725,458.08
===============
<PAGE>
Entergy Systems and Service, Inc.
Total Assets & Revenues by Activity
June 30, 1996
(Unaudited)
Assets by Activity:
Energy Management & DSM Services $ 67,755,731.37
===============
Revenues by Activity:
Energy Management & DSM Services $ 5,801,201.00
===============
<PAGE>
Entergy Systems and Service, Inc.
Total Assets & Revenues by Geographic Region
June 30, 1996
(Unaudited)
Assets by Region:
Inside Base Region $ 21,780,768.60
Outside Base Region 35,116,978.57
---------------
Total Assets 56,897,747.17
===============
Revenues by Region:
Inside Base Region $ 2,061,206.02
Outside Base Region 3,739,994.98
---------------
Total Revenues 5,801,201.00
===============
<PAGE>
Entergy Systems and Service, Inc.
Statement of Operations
Year-to-Date October 31, 1996
(Unaudited)
Revenue $ 19,611,651.00
Operating Expense 20,543,524.00
--------------
Gross Margin (931,873.00)
Selling Expense 12,661,111.00
Marketing 1,668,170.00
Administrative & General Expense 15,335,452.00
Other Expense/Income 5,683,362.00
--------------
Net Operating Profit (Loss) Before Taxes (36,279,968.00)
Income taxes (12,590,746.00)
--------------
Net Profit (Loss) $ (23,689,222.00)
==============
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
October 31, 1996
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 23,321,243.99
Accounts receivable 1,794,716.44
Other current assets 198,078.47
Total current assets 25,314,038.90
--------------
Investments:
Investment in SASI, Inc. -
Note receivable - SASI, Inc. 2,430,000.00
HES service contracts, net 3,296,341.75
--------------
Total investments 5,726,341.75
--------------
Fixed Assets:
Furniture and equipment, net 11,575,694.87
Intangible assets, net 372,601.02
Equipment inventory held for installation 25,905,013.48
Installations in process 6,022,360.95
Installed equipment 53,941,952.30
--------------
Total fixed assets 97,817,622.62
--------------
Deferred Debits:
Miscellaneous deferred debits 9,563,996.42
SASI technology 8,611,117.55
Deferred income taxes 5,653,038.16
Other assets, net 2,438,505.36
--------------
Total deferred debits 26,266,657.49
---------------
TOTAL ASSETS $ 155,124,660.76
<PAGE> ===============
Entergy Systems and Service, Inc.
Balance Sheet
October 31, 1996
(Unaudited)
LIABILITIES AND CAPITAL
Current & accrued liabilities:
Accounts payable $ 734,197.24
Accrued liabilities 5,791,464.81
Current portion of capital lease obligations 114,309.89
--------------
Total current & accrued liabilities 6,639,971.94
--------------
Long-term liabilities:
Note payable - Entergy Corp. -
Capital lease obligations 91,793.78
Other long-term liabilities 6,386,586.00
--------------
Total long-term liabilities 6,478,379.78
--------------
Deferred Credits:
Service contract revenue 48,899,595.36
--------------
Total deferred credits 48,899,595.36
--------------
Capital:
Common stock, no par value,
50,000 shares authorized,
13,500 shares issued and outstanding 13,500,000.00
Paid in capital 150,000,000.00
Accumulated deficit (70,393,286.32)
---------------
Total capital 93,106,713.68
---------------
Total liabilities and capital $ 155,124,660.76
===============
<PAGE>
