Segment information

6 Months Ended

Jun. 30, 2020

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 business 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, 2020
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	5,966,296	$	5,866,397	$	3,476,000	$	3,778,554	$	19,087,247
Cost of revenue		2,769,497		3,941,309		2,631,513		2,441,785		11,784,104
Gross profit		3,196,799		1,925,088		844,487		1,336,769		7,303,143
General and administrative expenses		3,266,782		261,100		1,014,765		318,381		4,861,028
Loss on asset dispositions and impairments, net		—		—		(3,030,420)		—		(3,030,420)
Income (loss) from operations	$	(69,983)	$	1,663,988	$	(3,200,698)	$	1,018,388		(588,305)
Other expense, net										(155,115)
Loss before income taxes										(743,420)
Provision for income taxes										204,268
Net loss										(947,688)
Income attributable to non-controlling interests										180,154
Net loss attributable to Consolidated Water Co. Ltd. stockholders									$	(1,127,842)

Depreciation and amortization expenses for the three months ended June 30, 2020 for the retail, bulk, services and manufacturing segments were $595,247, $967,064, $189,723 and $82,340, respectively.

	Three Months Ended June 30, 2019
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	6,983,515	$	6,941,051	$	90,792	$	4,289,902	$	18,305,260
Cost of revenue		2,982,758		4,768,122		45,094		2,956,537		10,752,511
Gross profit		4,000,757		2,172,929		45,698		1,333,365		7,552,749
General and administrative expenses		3,405,421		344,971		779,882		464,718		4,994,992
Gain on asset dispositions and impairments, net		397,301		—		—		—		397,301
Income (loss) from operations	$	992,637	$	1,827,958	$	(734,184)	$	868,647		2,955,058
Other income, net										50,333
Income before income taxes										3,005,391
Provision for income taxes										64,233
Net income										2,941,158
Income attributable to non-controlling interests										464,896
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	2,476,262

Depreciation and amortization expenses for the three months ended June 30, 2019 for the retail, bulk, services and manufacturing segments were $615,363, $976,437, $1,137 and $215,713, respectively.

	Six Months Ended June 30, 2020
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	13,223,728	$	12,306,681	$	6,590,813	$	7,691,746	$	39,812,968
Cost of revenue		5,756,117		8,505,889		4,905,033		4,902,465		24,069,504
Gross profit		7,467,611		3,800,792		1,685,780		2,789,281		15,743,464
General and administrative expenses		6,640,621		553,146		2,145,903		675,115		10,014,785
Gain (loss) on asset dispositions and impairments, net		—		200		(3,030,840)		—		(3,030,640)
Income (loss) from operations	$	826,990	$	3,247,846	$	(3,490,963)	$	2,114,166		2,698,039
Other income, net										14,229
Income before income taxes										2,712,268
Provision for income taxes										410,351
Net income										2,301,917
Income attributable to non-controlling interests										541,152
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	1,760,765

Depreciation and amortization expenses for the six months ended June 30, 2020 for the retail, bulk, services and manufacturing segments were $1,200,060, $1,934,299, $373,609 and $208,474, respectively.

	Six Months Ended June 30, 2019
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	13,670,175	$	14,052,364	$	191,369	$	7,379,876	$	35,293,784
Cost of revenue		5,808,362		9,722,713		167,013		5,080,644		20,778,732
Gross profit		7,861,813		4,329,651		24,356		2,299,232		14,515,052
General and administrative expenses		6,522,699		606,383		1,265,767		978,177		9,373,026
Gain on asset dispositions and impairments, net		394,570		46,500		—		—		441,070
Income (loss) from operations	$	1,733,684	$	3,769,768	$	(1,241,411)	$	1,321,055		5,583,096
Other income, net										310,423
Income before income taxes										5,893,519
Provision for income taxes										113,192
Net income from continuing operations										5,780,327
Income from continuing operations attributable to non-controlling interests										738,804
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										5,041,523
Net income from discontinued operations										3,621,170
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	8,662,693

Depreciation and amortization expenses for the six months ended June 30, 2019 for the retail, bulk, services and manufacturing segments were $1,133,377, $1,924,126, $2,273 and $492,766, respectively.

	As of June 30, 2020
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,872,089	$	20,126,330	$	1,537,453	$	2,322,712	$	26,858,584
Inventory, current and non-current	$	2,758,051	$	4,138,547	$	—	$	2,909,892	$	9,806,490
Property, plant and equipment, net	$	28,701,759	$	29,253,459	$	254,930	$	1,598,177	$	59,808,325
Construction in progress	$	225,663	$	31,737	$	—	$	142,063	$	399,463
Intangibles, net	$	—	$	—	$	3,538,889	$	1,034,444	$	4,573,333
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	4,885,211	$	13,325,013
Land and rights of way	$	—	$	—	$	21,126,898	$	—	$	21,126,898
Total segment assets	$	52,401,338	$	72,695,342	$	37,569,235	$	18,159,008	$	180,824,923

	As of December 31, 2019
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,891,165	$	18,883,493	$	954,149	$	500,882	$	23,229,689
Inventory, current and non-current	$	2,668,902	$	3,628,443	$	—	$	1,394,588	$	7,691,933
Property, plant and equipment, net	$	29,177,718	$	30,281,647	$	168,585	$	1,621,029	$	61,248,979
Construction in progress	$	396,214	$	869,792	$	—	$	69,591	$	1,335,597
Intangibles, net	$	—	$	—	$	3,877,222	$	1,162,778	$	5,040,000
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	4,885,211	$	13,325,013
Land and rights of way	$	—	$	—	$	24,162,523	$	—	$	24,162,523
Total segment assets	$	65,554,640	$	69,423,770	$	42,459,177	$	14,854,557	$	192,292,144