mexico against officials of the u.s government and the owners of the four corners power plant in new mexico concerning the environmental effects of the plant which is fueled by coal supplied from utah's navajo mine utah considers that these lawsuits are without merit but has not decided whether it should intervene to assure that its rights and interests are fully protected note 7 reserved common stock at october 31 1971 112,306 shares of common stock were reserved for future issuance to officers and key employees as restricted stock bonuses over an indefinite number of years and 168,871 shares were reserved for issuance upon conversion of the 5 subordinated guaranteed debentures note 8 revenue a substantial portion of utah's gross revenue from opera tions results from sales of iron ore and coal to japanese companies under long-term sales agreements in 1971 such sales were approximately one-half of total revenue a sub stantial portion of the output of certain mining projects recently completed or under development is expected to be sold to both japanese and european customers note 9 discontinued operations in 1971 utah sold substantially all of its dredging assets for 5,970,000 and recorded a net profit of 1,355,000 on the sale after applicable income taxes of 1,335,000 this trans action has been classified as an extraordinary item in the statement of consolidated income accordingly all reve nues and costs including applicable income taxes relating to dredging and other discontinued construction activities have been reclassified to income from discontinued op erations in the statement of consolidated income for both 1971 and 1970 the detail of the reclassification is as auditors report we have examined the consolidated balance sheet of utah inter national inc a delaware corporation formerly utah construction & mining co and subsidiaries as of october 31 1971 and 1970 and the related statements oi consolidated income stockholders equity and changes in financial position for each of the years then ended our examination was made in accordance with generally accepted audit ing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered neces sary in the circumstances we did not examine the financial state ments of certain affiliated companies the investments in which are recorded using the equity method of accounting see note 1 to the follows in thousands gross revenues from operations gross profit from operations income from joint ventures provision for income taxes income from discontinued operations note 10 earnings per share earnings per common share were computed based upon the weighted average number of shares of common stock outstanding during each period 14,213,529 for 1971 and 13,321,620 for 1970 earnings per common share assuming full dilution were determined based upon the assumed conversion of the 5 subordinated guaranteed debentures for purposes of this computation net income was increased by 91,000 in 1971 and 311,000 in 1970 the amounts of the related interest expense on such debentures net of income taxes the adjusted totals of shares outstanding used for this com putation were 14,509,604 for 1971 and 14,504,411 for 1970 note 11 merger in october 1971 the stockholders approved a merger agree ment whereby eccles investment company was merged into utah utah exchanged 1,167,466 of its shares for all of the outstanding common stock of eccles through this mer ger utah acquired 1,189,285 shares of its own stock which was the primary asset of eccles at the time of the merger these shares have been retired by utah according to the terms of the merger agreement the net effect of the merger was to reduce the number of utah's outstanding shares by 21,819 consolidated financial statements but were furnished with reports oi other public accountants thereon our opinion expressed herein insofar as it relates to the amounts included for such affiliates is based solely upon the reports of other public accountants in our opinion based upon our examination and the reports of other public accountants the accompanying consolidated financial statements present fairly the financial position of utah international ' ibsidiaries as of october 31 1971 and 1970 and the results ich of .._. as oi uctooer 3i la/i ana ia/u ana tn if their operations and the changes in financial position foi the years then ended in conformity with generally accepted account ing principles applied on a consistent basis during the two years arthur andersen & co decembers 1971 ten year comparison consolidated years ended october 31 1971 1970 1969 1968 1967 1966 1965 jnts and number of stockholders 1964 1963 1962 gross revenue'1 net income before income taxes . . after income taxes . . . 18,776 67,353 57,693 46,882 27,438 30,636 31,069 31,802 33,912 $ 50,578<j 44,959 34,283 26,081 $ 35,501(2 30,273 26,723i2 19,944 earnings per common share assuming full dilutionph4 $ 2.45 2.11 1.93 1.49 dividends paid cosh common stock per share common stock shares outstanding net of treasury shares number of stockholders • . total assets less applicable re.ervm working capital long-term liabilities stockholders equity net worth net worth per share'3 .... . . . $ 10,670 8,736 7,188 6,237 — — 200 — ...$ 75 65 56 48 21,143 17,975 14,551 16,543 13,175 11,016 1.28 1.02 85 5,590 4,730 4,300 8,439 7,705 11,871 7,292 7,085 9,321 57 55 72 4,085 3,873 3,753 — 100 2 32 30 29 14,322 14,100 12,917 4,302 4,300 4,300 4,300 4,300 4,302 2,152 6,496 6,095 5,501 4,468 528,784 360,676 280,601 257,798 $ 7,093 13,805 42,204 55,033 206,460 96,149 116,481 114,611 241,224 207,495 129,555 109,606 $ 16.84 14,72 10.03 8.49 4,429 4,265 3,796 181,964 162,040 138,696 9,820 10,696 6,622 52,880 45,282 32,125 95,755 84,802 76,356 7.42 6.57 5.92 3,675 3,343 2,835 123,693 124,192 125,783 11,970 12,691 13,910 32,941 36,984 39,775 2,629 36,487 60,575 note 2 net income includes 2,689,000 in 1971 and 2,663,000 in 1969 before income taxes a able to gains on sales recorded as extraordinary items note 3 per share amounts for all years have been calculated after giving effect to the etc note 4 earnings per common share assuming full dilution reflect the assumed convecsior share on weighted average shares outstanding were 2.50 s2.27 2.07 and 1.55 fo id 1,355,000 in 1971 and 1,844,000 i jk dividends of 200 paid in 1969 1 the years of 1971 1370 1969 and 196