Segment information

12 Months Ended

Dec. 31, 2023

Segment information

Segment information

14. 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 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.

	Year Ended December 31, 2023
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	30,158,051	$	34,595,058	$	97,966,650	$	17,491,474	$	180,211,233
Cost of revenue		13,891,229		24,128,132		66,797,762		13,467,005		118,284,128
Gross profit		16,266,822		10,466,926		31,168,888		4,024,469		61,927,105
General and administrative expenses		16,905,010		1,737,264		4,271,808		1,838,284		24,752,366
Gain (loss) on asset dispositions and impairments, net		(22,065)		12,720		—		2,233		(7,112)
Income (loss) from operations	$	(660,253)	$	8,742,382	$	26,897,080	$	2,188,418		37,167,627
Other income, net										828,313
Income before income taxes										37,995,940
Provision for income taxes										6,750,014
Net income from continuing operations										31,245,926
Income from continuing operations attributable to non-controlling interests										573,791
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										30,672,135
Loss from discontinued operations										(1,086,744)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	29,585,391

Depreciation and amortization expenses for the year ended December 31, 2023 for the retail, bulk, services and manufacturing segments were $2,484,845, $3,032,902, $785,347 and $273,360, respectively.

	As of December 31, 2023
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	3,425,948	$	26,965,126	$	6,802,780	$	1,033,037	$	38,226,891
Inventory, current and non-current	$	3,041,460	$	4,858,324	$	55,272	$	3,135,357	$	11,090,413
Contract assets	$	—	$	—	$	17,715,872	$	3,837,185	$	21,553,057
Property, plant and equipment, net	$	32,809,487	$	20,370,056	$	1,143,884	$	1,559,094	$	55,882,521
Construction in progress	$	380,436	$	—	$	—	$	115,035	$	495,471
Intangibles, net	$	—	$	—	$	2,692,074	$	661,111	$	3,353,185
Goodwill	$	1,170,511	$	1,948,875	$	7,756,807	$	1,985,211	$	12,861,404
Total segment assets	$	58,774,647	$	63,956,725	$	58,476,773	$	15,888,642	$	197,096,787
Assets of discontinued operations									$	21,340,805
Total assets									$	218,437,592

	Year Ended December 31, 2022
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	25,954,013	$	32,991,066	$	28,835,428	$	6,324,465	$	94,104,972
Cost of revenue		12,548,763		23,032,212		22,973,634		5,195,240		63,749,849
Gross profit		13,405,250		9,958,854		5,861,794		1,129,225		30,355,123
General and administrative expenses		14,552,866		1,570,732		3,461,294		1,485,342		21,070,234
Gain (loss) on asset dispositions and impairments, net		(39,397)		5,607		23,717		(2,631)		(12,704)
Income (loss) from operations	$	(1,187,013)	$	8,393,729	$	2,424,217	$	(358,748)		9,272,185
Other income, net										464,810
Income before income taxes										9,736,995
Provision for income taxes										396,739
Net income from continuing operations										9,340,256
Income from continuing operations attributable to non-controlling interests										1,112,913
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										8,227,343
Loss from discontinued operations										(2,371,049)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	5,856,294

Depreciation and amortization expenses for the year ended December 31, 2022 for the retail, bulk, services and manufacturing segments were $2,391,603, $2,836,794, $674,508 and $284,403, respectively.

	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

Revenue earned by major geographic region was:

	Year ended December 31,
	2023		2022
Cayman Islands	$	41,728,340	$	30,375,985
The Bahamas		31,221,633		29,943,615
United States		106,768,621		33,338,466
Revenue earned from management services agreement with OC-BVI		492,639		446,906
	$	180,211,233	$	94,104,972

Revenue earned from major customers was:

	Year ended December 31,
	2023		2022
Revenue earned from the WSC	$	31,221,633	$	29,943,615
Percentage of consolidated revenue earned from the WSC		17%		32%
Revenue earned from one service segment customer	$	64,149,170	$	11,805,752
Percentage of consolidated revenue earned from the one service segment customer		36%		13%

Property, plant and equipment, net by major geographic region was:

	December 31,
	2023		2022
Cayman Islands	$	32,902,949	$	28,068,156
The Bahamas		20,039,049		22,031,690
United States		2,940,523		2,429,699
	$	55,882,521	$	52,529,545