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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 September 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 third 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 Savings
Installations kW kWh
25 156.68 669,884.37
III. Summary of Total Assets and Revenues of EIS By Type of
Activity
Energy Management Funding of other
& DSM Consulting Contractors
Total Assets * $89,210,193.03
Total Revenues $7,002,041.00
* 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
U.S. (excluding World
Base Region Base Region) (excluding U.S.)
Total Assets ** $22,652,755.09 $40,988,091.28
Total Revenues $2,362,612.45 $4,639,428.55
** 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 September 30, 1996,
and as of the reporting date, respectively, and Income Statements
for the three month periods ending September 30, 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 18th day of February, 1997.
Entergy Corporation
By: /s/ Michael G. Thompson
Michael G. Thompson
Senior Vice President,
General Counsel and Secretary
Entergy Enterprises, Inc.
By: /s/ Michael G. Thompson
Michael G. Thompson
Senior Vice President -
Law and Secretary
Entergy Integrated Solutions, Inc.
By: /s/ Michael G. Thompson
Michael G. Thompson
Vice President 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
Entergy Systems and Service, Inc.
Statement of Operations
Quarter Ended September 30, 1996
(Unaudited)
Revenue $ 7,002,041.00
Operating Expense 7,751,964.00
-------------------
Gross Margin (749,923.00)
Selling Expense 3,734,542.00
Marketing 471,591.00
Administrative & General Expense 4,596,862.00
Other Expense/Income 1,734,259.00
-------------------
Net Operating Profit (Loss) Before Taxes (11,287,177.00)
Income taxes (3,843,269.00)
-------------------
Net Profit (Loss) $ (7,443,908.00)
===================
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
September 30, 1996
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 29,663,710.84
Accounts receivable 1,932,057.78
Other current assets 210,702.01
-------------------
Total current assets 31,806,470.63
-------------------
Investments:
Investment in SASI, Inc. -
Note receivable - SASI, Inc. 2,430,000.00
HES service contracts, net 3,382,280.44
-------------------
Total investments 5,812,280.44
-------------------
Fixed Assets:
Furniture and equipment, net 11,133,011.02
Intangible assets, net 403,651.10
Equipment inventory held for installation 25,569,346.66
Installations in process 6,224,863.96
Installed equipment 52,101,644.19
-------------------
Total fixed assets 95,432,516.93
-------------------
Deferred Debits:
Miscellaneous deferred debits 9,368,526.53
SASI technology 8,626,816.55
Deferred income taxes 4,392,291.10
Other assets, net 2,463,505.36
-------------------
Total deferred debits 24,851,139.54
-------------------
TOTAL ASSETS $ 157,902,407.54
===================
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
September 30, 1996
(Unaudited)
LIABILITIES AND CAPITAL
Current & accrued liabilities:
Accounts payable $ 367,124.92
Accrued liabilities 5,571,808.98
Current portion of capital lease obligations 116,521.40
-------------------
Total current & accrued liabilities 6,055,455.30
-------------------
Long-term liabilities:
Note payable - Entergy Corp. -
Capital lease obligations 103,168.66
Other long-term liabilities 6,386,586.00
-------------------
Total long-term liabilities 6,489,754.66
-------------------
Deferred Credits:
Service contract revenue 49,909,096.50
-------------------
Total deferred credits 49,909,096.50
-------------------
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 (68,051,898.92)
-------------------
Total capital 95,448,101.08
-------------------
Total liabilities and capital $ 157,902,407.54
===================
<PAGE>
Entergy Systems and Service, Inc.
Total Assets & Revenues by Activity
September 30, 1996
(Unaudited)
Assets by Activity:
Energy Management & DSM Services $ 89,210,193.03
===================
Revenues by Activity:
Energy Management & DSM Services $ 7,002,041.00
===================
<PAGE>
Entergy Systems and Service, Inc.
Total Assets & Revenues by Geographic Region
September 30, 1996
(Unaudited)
Assets by Region:
Inside Base Region $ 22,652,755.09
Outside Base Region 40,988,091.28
-------------------
Total Assets 63,640,846.37
===================
Revenues by Region:
Inside Base Region $ 2,362,612.45
Outside Base Region 4,639,428.55
-------------------
Total Revenues 7,002,041.00
===================
Entergy Systems and Service, Inc.
Statement of Operations
Year-to-Date December 31, 1996
(Unaudited)
Revenue $ 26,848,824.00
Operating Expense 27,412,886.00
-------------------
Gross Margin (564,062.00)
Selling Expense 15,593,270.00
Marketing 2,715,863.00
Administrative & General Expense 17,605,231.00
Other Expense/Income 9,025,158.00
Restructuring Expenses 14,678,878.00
-------------------
Net Operating Profit (Loss) Before Taxes (60,182,462.00)
Income taxes (21,005,895.00)
-------------------
Net Profit (Loss) $ (39,176,567.00)
===================
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
December 31, 1996
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 16,183,050.62
Accounts receivable 2,946,133.16
Other current assets 165,794.73
-------------------
Total current assets 19,294,978.51
-------------------
Investments:
Investment in SASI, Inc. -
Note receivable - SASI, Inc. 2,430,000.00
HES service contracts, net 2,726,102.33
-------------------
Total investments 5,156,102.33
-------------------
Fixed Assets:
Furniture and equipment, net 11,171,644.00
Intangible assets, net 310,500.85
Equipment inventory held for installation 23,667,752.05
Installations in process 6,749,751.45
Installed equipment 54,812,970.14
-------------------
Total fixed assets 96,712,618.49
-------------------
Deferred Debits:
Miscellaneous deferred debits 9,238,003.39
SASI technology -
Deferred income taxes 9,099,544.66
Other assets, net 2,299,692.54
-------------------
Total deferred debits 20,637,240.59
-------------------
TOTAL ASSETS $ 141,800,939.92
===================
<PAGE>
Entergy Systems and Service, Inc.
Balance Sheet
December 31, 1996
(Unaudited)
LIABILITIES AND CAPITAL
Current & accrued liabilities:
Accounts payable $ 1,048,152.82
Accrued liabilities 10,591,174.34
Current portion of capital lease obligations 107,298.23
-------------------
Total current & accrued liabilities 11,746,625.39
-------------------
Long-term liabilities:
Note payable - Entergy Corp. -
Capital lease obligations 83,214.84
Other long-term liabilities 6,200,367.00
-------------------
Total long-term liabilities 6,283,581.84
-------------------
Deferred Credits:
Service contract revenue 46,151,364.94
-------------------
Total deferred credits 46,151,364.94
-------------------
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 (85,880,632.25)
-------------------
Total capital 77,619,367.75
-------------------
Total liabilities and capital $ 141,800,939.92
===================
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