Segment information

3 Months Ended

Mar. 31, 2023

Segment information

Segment information

3. Segment information

The Company has four reportable segments: retail, bulk, services and manufacturing. The retail segment operates the water utility for the Seven Mile Beach and West Bay areas of Grand Cayman Island pursuant to an exclusive license granted by the Cayman Islands government. The bulk segment supplies potable water to government utilities in Grand Cayman and The Bahamas under long-term contracts. The services segment designs, constructs and sells water infrastructure and provides management and operating services to third parties. The manufacturing segment manufactures and services a wide range of custom and specialized water-related products applicable to commercial, municipal and industrial water production, supply and treatment. Consistent with prior periods, the Company records all non-direct general and administrative expenses in its retail business segment and does not allocate any of these non-direct expenses to its other three business segments.

The accounting policies of the segments are consistent with those described in Note 2. The Company evaluates each segment’s performance based upon its income (or loss) from operations. All intercompany transactions are eliminated for segment presentation purposes.

The Company’s segments are strategic business units that are managed separately because each segment sells different products and/or services, serves customers with distinctly different needs and generates different gross profit margins.

	Three Months Ended March 31, 2023
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	7,771,095	$	9,004,373	$	12,721,701	$	3,371,821	$	32,868,990
Cost of revenue		3,550,794		6,243,146		10,044,078		2,471,890		22,309,908
Gross profit		4,220,301		2,761,227		2,677,623		899,931		10,559,082
General and administrative expenses		4,177,107		352,975		1,088,672		417,908		6,036,662
(Loss) gain on asset dispositions and impairments, net		(7,287)		11,270		—		1,933		5,916
Income from operations	$	35,907	$	2,419,522	$	1,588,951	$	483,956		4,528,336
Other income, net										157,059
Income before income taxes										4,685,395
Provision for income taxes										449,485
Net income from continuing operations										4,235,910
Income from continuing operations attributable to non-controlling interests										163,121
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										4,072,789
Net loss from discontinued operations										(259,163)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	3,813,626

Depreciation and amortization expenses for the three months ended March 31, 2023 for the retail, bulk, services and manufacturing segments were $626,637, $728,129, $171,349 and $67,963, respectively.

	Three Months Ended March 31, 2022
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	6,313,200	$	7,350,644	$	4,743,820	$	1,150,241	$	19,557,905
Cost of revenue		3,053,740		4,687,119		3,649,180		1,022,102		12,412,141
Gross profit		3,259,460		2,663,525		1,094,640		128,139		7,145,764
General and administrative expenses		3,450,406		310,303		779,974		325,434		4,866,117
Gain on asset dispositions and impairments, net		—		—		12,458		—		12,458
Income (loss) from operations	$	(190,946)	$	2,353,222	$	327,124	$	(197,295)		2,292,105
Other income, net										319,727
Income before income taxes										2,611,832
Provision for income taxes										46,273
Net income from continuing operations										2,565,559
Income attributable to non-controlling interests										241,430
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										2,324,129
Net loss from discontinued operations										(607,314)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	1,716,815

Depreciation and amortization expenses for the three months ended March 31, 2022 for the retail, bulk, services and manufacturing segments were $615,685, $702,259, $158,999 and $71,208, respectively.

	As of March 31, 2023
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	3,227,894	$	16,841,269	$	7,081,934	$	2,398,966	$	29,550,063
Inventory, current and non-current	$	2,883,585	$	4,173,385	$	1,613,984	$	5,167,112	$	13,838,066
Property, plant and equipment, net	$	27,246,976	$	21,953,978	$	701,393	$	1,582,137	$	51,484,484
Construction in progress	$	4,799,471	$	—	$	—	$	61,792	$	4,861,263
Intangibles, net	$	—	$	—	$	1,951,111	$	731,111	$	2,682,222
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	1,985,211	$	10,425,013
Total segment assets	$	62,524,167	$	58,011,877	$	43,164,635	$	16,413,020	$	180,113,699
Assets of discontinued operations									$	21,498,649
Total assets									$	201,612,348

	As of December 31, 2022
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,953,927	$	16,554,940	$	5,838,721	$	1,698,594	$	27,046,182
Inventory, current and non-current	$	2,759,659	$	4,037,684	$	—	$	3,481,486	$	10,278,829
Property, plant and equipment, net	$	27,697,490	$	22,510,658	$	759,409	$	1,561,988	$	52,529,545
Construction in progress	$	3,643,889	$	—	$	—	$	61,792	$	3,705,681
Intangibles, net	$	—	$	—	$	2,064,444	$	754,444	$	2,818,888
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	1,985,211	$	10,425,013
Total segment assets	$	65,853,789	$	56,118,243	$	36,319,078	$	13,054,971	$	171,346,081
Assets of discontinued operations									$	21,660,768
Total assets									$	193,006,849