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 March 31, 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.
- -----------------------
<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
<PAGE>
I. Development of Energy Efficiency Technology and
Manufacturing Processes of Systems & Service International,
Inc. (SASI)
During the first quarter of 1996, SASI continued to make
significant progress in lowering overall Product costs, largely
by reducing administrative and overhead expenses. With respect
to the automation of SASI's production process, manufacturing
operations for the Electronic Ballast Device have already been
substantially automated. However, SASI has determined that
anticipated production levels do not justify the expense
associated with further automation of its assembly lines at this
time.
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 Savings
Installations kw's kwh's
------------- ---------- -------------
296 1,840.42 10,544,856.76
III. Summary of Total Assets and Revenues of EIS By Type of
Activity
Funding of
Energy Management other
& DSM Consulting Contractors
------------------- ---------- -------------
Total Assets * $67,755,731.37
Total Revenues $4,057,465.00
* 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
World
U.S. (excluding (excluding
Base Region Base Region) U.S.)
-------------- ---------------- ----------
Total Assets ** $19,824,390.30 $29,602,587.01
Total Revenues $1,531,613.64 $2,525,851.36
** 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 March 31, 1996, and as
of the reporting date, respectively, and Income Statements for
the three month periods ending March 31, 1996, and for the
calendar year to date, respectively, are attached hereto.
<PAGE>
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed this 15th day of August, 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
Entergy Systems and Service, Inc.
Statement of Operations
Quarter Ended March 31, 1996
(Unaudited)
________________________________________________
Revenue $ 4,057,465.00
Operating Expense 4,288,692.00
--------------
Gross Margin (231,227.00)
Selling Expense 3,840,556.00
Marketing 441,822.00
Administrative & General Expense 4,578,411.00
Other Expense/Income 1,463,978.00
--------------
Net Operating Profit (Loss) Before Taxes (10,555,994.00)
Income taxes (3,694,598.00)
--------------
Net Profit (Loss) $ (6,861,396.00)
==============
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
March 31, 1996
(Unaudited)
________________________________________________
ASSETS
Current assets:
Cash and cash equivalents $ 16,925,994.01
Accounts receivable 1,506,610.38
Other current assets 209,334.93
--------------
Total current assets 18,641,939.32
--------------
Investments:
Investment in SASI, Inc. -
Note receivable - SASI, Inc. 2,430,000.00
HES service contracts, net 3,897,912.54
--------------
Total investments 6,327,912.54
--------------
Fixed Assets:
Furniture and equipment, net 9,859,627.72
Intangible assets, net 589,951.63
Equipment inventory held for installation 18,328,754.06
Installations in process 8,637,158.57
Installed equipment 35,385,295.82
--------------
Total fixed assets 72,800,787.80
--------------
Deferred Debits:
Miscellaneous deferred debits 7,355,177.67
SASI technology 8,721,010.55
Deferred income taxes 9,944,889.88
Other assets, net 6,593,296.44
--------------
Total deferred debits 32,614,374.54
--------------
TOTAL ASSETS $ 130,385,014.20
================
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
March 31, 1996
(Unaudited)
________________________________________________
LIABILITIES AND CAPITAL
Current & accrued liabilities:
Accounts payable $ 462,865.26
Accrued liabilities 6,041,779.74
Current portion of capital lease obligations 157,873.22
--------------
Total current & accrued liabilities 6,662,518.22
--------------
Long-term liabilities:
Note payable - Entergy Corp. -
Capital lease obligations 170,999.67
Other long-term liabilities 7,348,850.00
--------------
Total long-term liabilities 7,519,849.67
--------------
Deferred Credits:
Service contract revenue 31,268,105.82
--------------
Total deferred credits 31,268,105.82
--------------
Capital:
Common stock, no par value, 50,000 shares authorized,
13,500 shares issued and outstanding 13,500,000.00
Paid in capital 125,000,000.00
Accumulated deficit (53,565,459.51)
--------------
Total capital 84,934,540.49
--------------
Total liabilities and capital $ 130,385,014.20
================
<PAGE>
Entergy Systems and Service, Inc.
Total Assets & Revenues by Activity
March 31, 1996
(Unaudited)
________________________________________________
Assets by Activity:
Energy Management & DSM Services $ 67,755,731.37
================
Revenues by Activity:
Energy Management & DSM Services $ 4,057,465.00
================
<PAGE>
Entergy Systems and Service, Inc.
Total Assets & Revenues by Geographic Region
March 31, 1996
(Unaudited)
________________________________________________
Assets by Region:
Inside Base Region $ 19,824,390.30
Outside Base Region 29,602,587.01
--------------
Total Assets 49,426,977.31
==============
Revenues by Region:
Inside Base Region $ 1,531,613.64
Outside Base Region 2,525,851.36
--------------
Total Revenues 4,057,465.00
==============
Entergy Systems and Service, Inc.
Statement of Operations
Year-to-Date July 31, 1996
(Unaudited)
______________________________________________________
Revenue $ 11,999,825.00
Operating Expense 11,645,391.00
---------------
Gross Margin 354,434.00
Selling Expense 9,003,696.00
Marketing 1,256,014.00
Administrative & General Expense 11,264,508.00
Other Expense/Income 3,887,701.00
---------------
Net Operating Profit (Loss) Before Taxes (25,057,485.00)
Income taxes (8,662,877.00)
---------------
Net Profit (Loss) $ (16,394,608.00)
===============
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
July 31, 1996
(Unaudited)
______________________________________________________
ASSETS
Current assets:
Cash and cash equivalents $ 3,295,157.23
Accounts receivable 2,451,280.34
Other current assets 527,443.03
---------------
Total current assets 6,273,880.60
---------------
Investments:
Investment in SASI, Inc. -
Note receivable - SASI, Inc. 2,430,000.00
HES service contracts, net 3,554,157.82
---------------
Total investments 5,984,157.82
---------------
Fixed Assets:
Furniture and equipment, net 10,764,948.77
Intangible assets, net 465,751.27
Equipment inventory held for installation 24,858,630.61
Installations in process 8,559,469.62
Installed equipment 46,181,750.34
---------------
Total fixed assets 90,830,550.61
---------------
Deferred Debits:
Miscellaneous deferred debits 8,759,489.87
SASI technology 8,658,214.55
Deferred income taxes 8,794,168.57
Other assets, net 2,698,982.36
---------------
Total deferred debits 28,910,855.35
---------------
TOTAL ASSETS $ 131,999,444.38
===============
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
July 31, 1996
(Unaudited)
_______________________________________________________
LIABILITIES AND CAPITAL
Current & accrued liabilities:
Accounts payable $ 958,850.06
Accrued liabilities 5,753,751.26
Current portion of capital lease obligations 120,944.42
---------------
Total current & accrued liabilities 6,833,545.74
---------------
Long-term liabilities:
Note payable - Entergy Corp. -
Capital lease obligations 125,918.42
Other long-term liabilities 6,386,586.00
---------------
Total long-term liabilities 6,512,504.42
---------------
Deferred Credits:
Service contract revenue 30,679,065.58
---------------
Total deferred credits 30,679,065.58
---------------
Capital:
Common stock, no par value, 50,000 shares authorized,
13,500 shares issued and outstanding 13,500,000.00
Paid in capital 137,573,000.00
Accumulated deficit (63,098,671.36)
---------------
Total capital 87,974,328.64
---------------
Total liabilities and capital $ 131,999,444.38
<PAGE> ===============
