Segment information

9 Months Ended

Sep. 30, 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 September 30, 2024
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	7,585,992	$	8,767,168	$	12,677,837	$	4,359,560	$	33,390,557
Cost of revenue		3,606,944		5,969,292		9,409,325		2,770,338		21,755,899
Gross profit		3,979,048		2,797,876		3,268,512		1,589,222		11,634,658
General and administrative expenses		4,359,476		381,230		1,469,845		745,418		6,955,969
Gain on asset dispositions and impairments, net		201,582		—		—		—		201,582
Income (loss) from operations	$	(178,846)	$	2,416,646	$	1,798,667	$	843,804		4,880,271
Other income, net										724,040
Income before income taxes										5,604,311
Provision for income taxes										490,209
Net income from continuing operations										5,114,102
Income from continuing operations attributable to non-controlling interests										156,784
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										4,957,318
Net loss from discontinued operations										(502,854)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	4,454,464

Depreciation and amortization expenses for the three months ended September 30, 2024 for the retail, bulk, services and manufacturing segments were $638,465, $726,503, $247,330 and $65,775, respectively.

	Three Months Ended September 30, 2023
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	7,216,574	$	8,488,615	$	29,427,664	$	4,721,222	$	49,854,075
Cost of revenue		3,371,891		5,835,837		20,174,645		3,857,274		33,239,647
Gross profit		3,844,683		2,652,778		9,253,019		863,948		16,614,428
General and administrative expenses		4,225,825		347,668		861,835		437,162		5,872,490
Income (loss) from operations	$	(381,142)	$	2,305,110	$	8,391,184	$	426,786		10,741,938
Other income, net										236,066
Income before income taxes										10,978,004
Provision for income taxes										1,976,453
Net income from continuing operations										9,001,551
Income attributable to non-controlling interests										163,428
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										8,838,123
Net loss from discontinued operations										(232,994)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	8,605,129

Depreciation and amortization expenses for the three months ended September 30, 2023 for the retail, bulk, services and manufacturing segments were $593,306, $748,594, $182,825 and $68,197, respectively.

	Nine Months Ended September 30, 2024
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	24,392,814	$	25,557,220	$	42,017,917	$	13,591,154	$	105,559,105
Cost of revenue		10,828,421		17,632,010		30,536,801		9,428,978		68,426,210
Gross profit		13,564,393		7,925,210		11,481,116		4,162,176		37,132,895
General and administrative expenses		12,842,624		1,088,639		4,264,323		1,930,706		20,126,292
Gain on asset dispositions and impairments, net		195,452		—		3,000		—		198,452
Income from operations	$	917,221	$	6,836,571	$	7,219,793	$	2,231,470		17,205,055
Other income, net										1,560,650
Income before income taxes										18,765,705
Provision for income taxes										2,175,838
Net income from continuing operations										16,589,867
Income from continuing operations attributable to non-controlling interests										448,724
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										16,141,143
Net income from discontinued operations										10,637,926
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	26,779,069

Depreciation and amortization expenses for the nine months ended September 30, 2024 for the retail, bulk, services and manufacturing segments were $1,912,893, $2,159,557, $750,630 and $197,330, respectively.

	Nine Months Ended September 30, 2023
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	22,560,998	$	25,975,483	$	66,243,328	$	12,180,519	$	126,960,328
Cost of revenue		10,355,817		18,010,718		46,466,864		9,489,870		84,323,269
Gross profit		12,205,181		7,964,765		19,776,464		2,690,649		42,637,059
General and administrative expenses		12,668,467		1,080,543		2,855,067		1,289,990		17,894,067
Gain (loss) on asset dispositions and impairments, net		(7,287)		12,270		—		1,933		6,916
Income (loss) from operations	$	(470,573)	$	6,896,492	$	16,921,397	$	1,402,592		24,749,908
Other income, net										522,256
Income before income taxes										25,272,164
Provision for income taxes										4,366,005
Net income from continuing operations										20,906,159
Income from continuing operations attributable to non-controlling interests										463,775
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										20,442,384
Net loss from discontinued operations										(699,858)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	19,742,526

Depreciation and amortization expenses for the nine months ended September 30, 2023 for the retail, bulk, services and manufacturing segments were $1,813,280, $2,316,923, $528,258 and $204,320, respectively.

	As of September 30, 2024
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,720,278	$	25,258,343	$	7,015,961	$	2,205,039	$	37,199,621
Inventory, current and non-current	$	3,271,606	$	4,847,304	$	—	$	990,481	$	9,109,391
Contract assets	$	—	$	—	$	1,237,011	$	721,350	$	1,958,361
Property, plant and equipment, net	$	31,863,964	$	18,769,485	$	954,095	$	1,615,674	$	53,203,218
Construction in progress	$	1,889,549	$	709,326	$	—	$	200,260	$	2,799,135
Intangibles, net	$	—	$	—	$	2,269,796	$	591,111	$	2,860,907
Goodwill	$	1,170,511	$	1,948,875	$	7,756,807	$	1,985,211	$	12,861,404
Total segment assets	$	98,835,592	$	70,098,621	$	50,915,586	$	18,203,082	$	238,052,881
Assets of discontinued operations									$	314,847
Total assets									$	238,367,728

	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