financial comment capital expenditures during the past five years for the development of major new mining projects the expansion of nearly all existing mines and for normal replacements have exceeded 300 mil lion financing such a program has required substantial increases in stockholders equity accounts and in long-term liabilities equity capital has been provided by retained earnings and the issuance and later conversion of subordinated debentures and the company's net worth has grown from 96 million at the beginning of 1968 to 271 million at the close of 1972 utah has also employed leverage through a borrowing program which has increased long-term debt from 53 million to 219 million during the same period additional fund requirements have been provided from other internal sources particularly non-cash charges and deferred taxes in 1972 increases in the equity and long-term debt accounts were 29 million and 12 million respectively capital expenditures were 60 million in 1972 and are scheduled at 76 million in 1973 and 56 million in 1974 while these figures include amounts for completion of current expansion programs and for normal replacements and additions most of the budgeted expenditures are for the new saraji coking coal project new financing program during 1972 financing was arranged for the saraji project and for the first phase of the navajo gasification project in new mexico the 1972-1974 financing program is comprised of a eurobond issue an extension of current eurodollar revolving credits and a new eurodollar revolving credit agreement utah international finance corp a wholly owned finance subsidiary issued 20 million in seven-year notes and 20 million in 15-year debentures to euro pean investors in an underwritten public offering on march 23 1972 later in the year maturity schedules of all existing eurodollar revolving credits involving 102 million in bank commitments to utah were extended two years utah also entered into a new 50 million eurodollar revolving credit agreement with a group of six united states banks effective june 1 1972 this latter agree ment was established with the understanding that all or some portion of the revolving credit might be replaced with fixed-term borrowings at an appropriate time several such replacements are now under active consideration including the possibility of a loan from a syndicate of japanese banks with the new borrowing arrangements utah now has available from banks institutions and the public sector a flexible program of medium and long-term financing which will provide total borrowings of approximately 300 million by early 1975 these amounts are considered more than adequate to meet peak borrowing requirements for projects now under development interest income and expense it has been utah's practice to capitalize interest charges associated with projects in their development and construction stages several such projects involving cap italization of sizable interest charges in previous years commenced operations in 1972 at which time current interest costs became an expense item as a result of this factor and greater average borrowings interest expenses for the year rose to 13,072,000 from 2,943,000 in 1971 as utah continues to seek and develop new projects charges for interest should remain at high levels interest income in 1972 was 4,816,000 up from 2,779,000 in the preceding year loans to the queensland government to finance the construction of railroad facilities required for utah's coking coal mines are the most significant of the company's interest-bearing receivables in 1972 these loan balances were increased to complete the railroad facilities for peak downs and for additional blackwater railroad improvements it was this activity that provided the added interest income convertible debentures some 1 8 million of the 53a subordinated guaranteed debentures of utah international finance corp due september 15 1983 were converted during this year into common stock of utah international inc as of october 31 1972 only 4.5 million of these deben tures of an original issue of 30 million were outstanding and future conversions should result in issuance of the additional 121,000 common shares reserved for this purpose shareholders at the close of the 1972 fiscal year there were 14,376,244 shares of the company's common stock outstanding the stock was held by 6300 shareholders residing in 50 states and the district of columbia and 12 foreign countries 22 statement of consolidated income years ended october 31 1972 amount income gross revenues from operations note 7 costs and expenses gross profit from operations equity in net income loss of — affiliates note 1 joint ventures and partnerships note 2 interest other net gross profit and other income , expenses general and administrative interest note 3 provision for employees retirement plan minority interest in net income of subsidiaries income before income taxes discontinued operations and extraordinary item provision for income taxes note 8 income before discontinued operations and extraordinary item . income from discontinued operations net of income taxes note 9 income before extraordinary item extraordinary item net of income taxes note 9 net income earnings per common share note 1 0 income before discontinued operations and extraordinary item . income from discontinued operations extraordinary item net income earnings per common share assuming full dilution note 10 income before discontinued operations and extraordinary item . income from discontinued operations extraordinary item net income 209,770 147,134 1 04,436 70,829 the accompanying a