Segment information

3 Months Ended

Mar. 31, 2024

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 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 March 31, 2024
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	8,624,938	$	8,342,094	$	17,417,611	$	5,304,747	$	39,689,390
Cost of revenue		3,551,344		5,565,258		12,668,939		4,025,826		25,811,367
Gross profit		5,073,594		2,776,836		4,748,672		1,278,921		13,878,023
General and administrative expenses		4,104,332		344,141		1,597,854		517,702		6,564,029
Income from operations	$	969,262	$	2,432,695	$	3,150,818	$	761,219		7,313,994
Other income, net										418,184
Income before income taxes										7,732,178
Provision for income taxes										621,696
Net income from continuing operations										7,110,482
Income from continuing operations attributable to non-controlling interests										169,068
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										6,941,414
Net loss from discontinued operations										(467,066)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	6,474,348

Depreciation and amortization expenses for the three months ended March 31, 2024 for the retail, bulk, services and manufacturing segments were $640,470, $716,328, $251,752 and $66,149, respectively.

	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
Gain (loss) 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 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.

	As of March 31, 2024
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	3,772,393	$	25,652,487	$	9,071,028	$	3,268,348	$	41,764,256
Inventory, current and non-current	$	3,076,106	$	4,885,944	$	—	$	1,224,569	$	9,186,619
Contract assets	$	—	$	—	$	17,995,584	$	5,344,911	$	23,340,495
Property, plant and equipment, net	$	32,429,299	$	19,686,717	$	1,047,825	$	1,684,907	$	54,848,748
Construction in progress	$	659,798	$	12,661	$	—	$	146,961	$	819,420
Intangibles, net	$	—	$	—	$	2,551,314	$	637,778	$	3,189,092
Goodwill	$	1,170,511	$	1,948,875	$	7,756,807	$	1,985,211	$	12,861,404
Total segment assets	$	58,080,386	$	66,445,312	$	60,231,126	$	16,740,204	$	201,497,028
Assets of discontinued operations									$	21,669,155
Total assets									$	223,166,183

	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