utah construction & mining co and subsidiaries statement of consolidated income for the years ended october 31 1968 1967 income gross revenues from operations note 7 118,267,808 113,301,154 costs and expenses 101,268,952 100,084,126 gross profit from operations $ 16,998,856 $ 13,217,028 equity in net income of affiliates note 1 11,968,120 10,434,341 joint ventures proportionate share of gross revenue ap proximately 24,000,000 for 1968 and 35,000,000 for 1967 note 7 3,342,023 3,550,898 gain loss on sale of equipment and investments 187,496 280,023 interest 3,027,095 1,386,454 other income 1,130,858 531,869 gross profit and other income $ 36,279,456 $ 29,400,613 expenses general and administrative $ 4,804.030 $ 4.336.442 employees retirement plan provision 885,000 820,000 interest 4.509,846 3,100,853 $ 10.198.876 $ 8,257,295 net income before income taxes $ 26.080,580 $ 21,143,318 provision for income taxes note 5 6,137,000 4,600,000 net income $ 19.943,580 $ 16,543,318 net income per share based upon weighted average ~ note 2 shares outstanding during the period 4.64 3.85 assuming full conversion of convertible debentures 4.47 3.85 statement of sources and applications of funds for the years ended october 31 funds were provided from net income add — depreciation and depletion expenses not requiring an expenditure of funds increase in long-term liabilities sale of debentures loan from insurance company other net decrease in investment in joint ventures total funds provided funds were used for affiliates land and real estate construction equipment and facilities mining lands leases and development costs mining equipment and facilities other assets cash dividends paid to stockholders total funds used net increase decrease in working capital 1968 19,943,580 6,737,168 26,680,748 54,997,000 9,620,601 3,134,275 94,432,624 34,403,913 1967 16,543,318 5,975,635 22,518,953 5.000.000 1,590,372 5,294,588 $ 8,698.865 6,224,650 3,673,460 2.748.300 12,029,031 9.607,330 6,237,317 $ 8,280,491 4,694,119 3,443,216 1,126,906 9.492,037 2,653,064 5,590,311 49,218,953 35,280,144 45,213,671 $ 876,231 notes to consolidated financial statements october 31 1968 dated financial statements include the accounts of utah c-onstruc inies the company after elimination of significant intercom 5 ana iransacnans in addition the statements include utah's equity in the net earnings of affiliated f in which utah does not have a majority interest these affiliates are in the nature of joint venture p & mining co and all subsidia it d ti d total equity less — estim ships estim nying 1968 a tarnings is recorded based upon the affiliates audited financial ir-end and upon subsequent interim reports submitted by the es payable on such earnings when distributed have been pro mts the composition of utah's investment in affiliated com in undistributed earning of affiliates ted income taxes payable upon distribution of earnings ary of the unaudited c $ 34,837,000 132,031,000 166.666,000 $ 27,602,000 38,944,000 100,322,000 166,868,000 ended october 31 1968 and 1967 respectively the accounts of foreign branches subsidiaries and aff effect upon the accompanying consolidated financial state 2 earnings per share net income per share assuming fu effect to the dilution which would have resulted from c debentures into 259,036 shares and bj the 5a subordin purposes of this computation reported earnings were incr joo and 19,103,000 for ranslated ti aversion of a the 5 id guaranteed debentu sed by 603,000 the air onvertible subor i into 270,270 shar 3 long-term liabilities long-term liabilities at october 31 1966 and 1 q convertible subord due in 1992 vj°/i subordinated guai due in 1983 u»h notes payable to banks dm 1973 '/.% note payable to bank due d ted debentur teed debentur sued november 1967 and ssued september 1968 and > installments from 1968 to vj ' l"le'>mh due in varying installments to 1989 5 - b'/t'h notes and contracts payable due in varying installments to 19b3 1973 $ 35,000,000 24,997,000 30,000,000 4,032,000 $ 94,029,000 $ 15,340,824 2,645,923 2,595,576 10,000 1,000,000 38,800,000 $ 7,662,716 2,994,304 3,423,363 int her and p s payable on land pur ubje _ iey obligations including notes and ured only by the related land and do not represent claims agaii , subordinated debentures due november 1 1992 are convertible at a price of 9b 50 per j jment under certain conditions the company will be required to make sinking fund payments beginning november 1 1976 in an annual amount equal to 5°/o of such debentures outstanding at nodv1hebreaft'er9irthucfh debentures may be redeemed prior to november 1 1987 by payment of a premium upon conversion of these debentures the 5*nv subordinated guaranteed debentures of utah international finance corp a wholly owned sub 15 bl rent company beainnine anhi 1 nditiont thl debentures may be b 70,270 shares of ertible int re subject to adjust of a premium b stock of the t under certain ning in 1973 at october idiary due septe , 9 969 at a price of 111.00 per edeemed prior to maturity by pay the company has given no recognition to the requirements of paragraphs 6 and 9 of opinion 10 of the ccounting principles board of the american institute of certified public accountants under which the dis ount attributable to the conversion privilege of the debentures would be capitalized ad the liie o son privilege of the debentures would be capitalized and amortized against the debentures 4 construction and mining equipment and facilities construction and mining equipment and facilities are depreciated depleted or amortized over their estimated useful lives by use of the unit-of production straight-line or declining-balance methods as applicable where amounts deducted for tax purposes exceed those recorded for book purposes appropriate provision has been made in the accounts for the income taxes fd j thereby deferred by the united states internal reve " any's.inc iecode and profit fro s derived from dividen tments all of which ar , axed at tinued