Segment information

6 Months Ended

Jun. 30, 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 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 June 30, 2023
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	7,573,329	$	8,482,495	$	24,093,963	$	4,087,476	$	44,237,263
Cost of revenue		3,433,132		5,931,735		16,248,141		3,160,706		28,773,714
Gross profit		4,140,197		2,550,760		7,845,822		926,770		15,463,549
General and administrative expenses		4,265,535		379,900		904,560		434,920		5,984,915
Gain on asset dispositions and impairments, net		—		1,000		—		—		1,000
Income (loss) from operations	$	(125,338)	$	2,171,860	$	6,941,262	$	491,850		9,479,634
Other income, net										129,131
Income before income taxes										9,608,765
Provision for income taxes										1,940,067
Net income from continuing operations										7,668,698
Income from continuing operations attributable to non-controlling interests										137,226
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										7,531,472
Net loss from discontinued operations										(207,701)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	7,323,771

Depreciation and amortization expenses for the three months ended June 30, 2023 for the retail, bulk, services and manufacturing segments were $593,337, $840,200, $174,084 and $68,160, respectively.

	Three Months Ended June 30, 2022
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	6,526,803	$	8,423,749	$	5,055,483	$	1,061,092	$	21,067,127
Cost of revenue		3,118,411		5,647,583		3,865,867		959,769		13,591,630
Gross profit		3,408,392		2,776,166		1,189,616		101,323		7,475,497
General and administrative expenses		3,345,109		404,072		838,040		339,470		4,926,691
Gain on asset dispositions and impairments, net		1,200		—		4,080		—		5,280
Income (loss) from operations	$	64,483	$	2,372,094	$	355,656	$	(238,147)		2,554,086
Other income, net										397,982
Income before income taxes										2,952,068
Provision for income taxes										10,152
Net income from continuing operations										2,941,916
Income attributable to non-controlling interests										232,197
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										2,709,719
Net loss from discontinued operations										(419,833)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	2,289,886

Depreciation and amortization expenses for the three months ended June 30, 2022 for the retail, bulk, services and manufacturing segments were $637,796, $704,841, $168,078 and $70,307, respectively.

	Six Months Ended June 30, 2023
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	15,344,424	$	17,486,868	$	36,815,664	$	7,459,297	$	77,106,253
Cost of revenue		6,983,926		12,174,881		26,292,219		5,632,596		51,083,622
Gross profit		8,360,498		5,311,987		10,523,445		1,826,701		26,022,631
General and administrative expenses		8,442,642		732,875		1,993,232		852,828		12,021,577
Gain (loss) on asset dispositions and impairments, net		(7,287)		12,270		—		1,933		6,916
Income (loss) from operations	$	(89,431)	$	4,591,382	$	8,530,213	$	975,806		14,007,970
Other income, net										286,190
Income before income taxes										14,294,160
Provision for income taxes										2,389,552
Net income from continuing operations										11,904,608
Income from continuing operations attributable to non-controlling interests										300,347
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										11,604,261
Net loss from discontinued operations										(466,864)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	11,137,397

Depreciation and amortization expenses for the six months ended June 30, 2023 for the retail, bulk, services and manufacturing segments were $1,219,974, $1,568,329, $345,433 and $136,123, respectively.

	Six Months Ended June 30, 2022
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	12,840,003	$	15,774,393	$	9,799,303	$	2,211,333	$	40,625,032
Cost of revenue		6,172,151		10,334,702		7,515,047		1,981,871		26,003,771
Gross profit		6,667,852		5,439,691		2,284,256		229,462		14,621,261
General and administrative expenses		6,795,515		714,375		1,618,014		664,904		9,792,808
Gain on asset dispositions and impairments, net		1,200		—		16,538		—		17,738
Income (loss) from operations	$	(126,463)	$	4,725,316	$	682,780	$	(435,442)		4,846,191
Other income, net										717,709
Income before income taxes										5,563,900
Benefit from income taxes										56,425
Net income from continuing operations										5,507,475
Income from continuing operations attributable to non-controlling interests										473,627
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										5,033,848
Net loss from discontinued operations										(1,027,147)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	4,006,701

Depreciation and amortization expenses for six months ended June 30, 2022 for the retail, bulk, services and manufacturing segments were $1,253,481, $1,407,100, $327,077 and $141,515, respectively.

	As of June 30, 2023
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,888,718	$	16,706,287	$	9,313,767	$	1,393,866	$	30,302,638
Inventory, current and non-current	$	2,982,133	$	4,521,035	$	2,442,895	$	4,903,493	$	14,849,556
Contract assets	$	—	$	—	$	4,391,497	$	3,801,273	$	8,192,770
Property, plant and equipment, net	$	26,784,612	$	21,593,941	$	788,538	$	1,565,950	$	50,733,041
Construction in progress	$	5,798,183	$	30,388	$	—	$	61,792	$	5,890,363
Intangibles, net	$	—	$	—	$	1,837,778	$	707,778	$	2,545,556
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	1,985,211	$	10,425,013
Total segment assets	$	60,266,383	$	60,738,383	$	46,324,828	$	16,300,967	$	183,630,561
Assets of discontinued operations									$	21,449,715
Total assets									$	205,080,276

	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
Contract assets	$	—	$	—	$	1,249,069	$	1,664,653	$	2,913,722
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