CONSOLIDATED WATER CO. LTD. CONSOLIDATED STATEMENTS OF INCOME (Expressed in United States dollars) For the year ended December 31, 2000 1999 1998 Water sales (Note 15) 9,576,959 7,936,118 7,925,232 Cost of water sales (Note 9) ( 5,423,297) (4,770,179) ( 5,166,401) Gross profit 4,153,662 3,165,939 2,758,831 Indirect expenses (Note 9) ( 2,197,569) ( 1,792,516) ( 1,569,380) Income from operations 1,956,093 1,373,423 1,189,451 Other income: Interest income 32,314 594 28,062 Other income 416,413 313,276 234,420 448,727 313,870 262,482 Income before accounting change 2,404,820 1,687,293 1,451,933 Cumulative effect of a change in accounting principle - ( 117,576) - Net income $ 2,404,820 $ 1,569,717 $ 1,451,933 Basic earnings per share (Note 10) Income before accounting change 0.68 0.55 0.47 Accounting changes - ( 0.04) - Net income $ 0.68 $ 0.51 $ 0.47 Diluted earnings per share (Note 10) Income before accounting change 0.67 0.53 0.45 Accounting changes - ( 0.04) Net income $ 0.67 $ 0.49 $ 0.45 Weighted average number of common shares used in the determination of: Basic earnings per share (Note 10) 3,532,501 3,044,293 3,055,845 Diluted earnings per share (Note 10) 3,616,271 3,188,048 3,191,583 The accompanying notes are an integral part of these financial statements.