Segment information

12 Months Ended

Dec. 31, 2020

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 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.

	Year Ended December 31, 2020
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	22,952,370	$	24,312,546	$	12,937,859	$	12,425,351	$	72,628,126
Cost of revenue		11,080,814		16,959,563		9,698,214		8,121,080		45,859,671
Gross profit		11,871,556		7,352,983		3,239,645		4,304,271		26,768,455
General and administrative expenses		12,879,445		1,260,062		2,834,917		1,460,474		18,434,898
Gain on asset dispositions and impairments, net		2,965		7,213		3,801		18		13,997
Income (loss) from operations	$	(1,004,924)	$	6,100,134	$	408,529	$	2,843,815		8,347,554
Other income, net										1,082,946
Income before income taxes										9,430,500
Provision for income taxes										86,724
Net income from continuing operations										9,343,776
Income from continuing operations attributable to non-controlling interests										730,005
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										8,613,771
Net loss from discontinued operations										(4,902,243)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	3,711,528

Depreciation and amortization expenses for the year ended December 31, 2020 for the retail, bulk, services and manufacturing segments were $2,388,781, $3,869,377, $762,182 and $386,169, respectively.

	As of December 31, 2020
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,444,455	$	17,022,813	$	1,420,609	$	596,099	$	21,483,976
Inventory, current and non-current	$	2,787,163	$	3,795,544	$	—	$	1,138,313	$	7,721,020
Property, plant and equipment, net	$	27,947,545	$	27,611,567	$	487,973	$	1,640,899	$	57,687,984
Construction in progress	$	305,110	$	31,737	$	—	$	103,537	$	440,384
Intangibles, net	$	—	$	—	$	3,200,555	$	947,778	$	4,148,333
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	4,885,211	$	13,325,013
Total segment assets	$	56,425,159	$	74,771,798	$	14,470,322	$	11,210,685	$	156,877,964
Assets of discontinued operations									$	22,677,588
Total assets									$	179,555,552

	Year Ended December 31, 2019
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	26,456,022	$	26,986,108	$	1,759,446	$	13,592,075	$	68,793,651
Cost of revenue		11,611,165		18,606,805		1,215,193		9,086,140		40,519,303
Gross profit		14,844,857		8,379,303		544,253		4,505,935		28,274,348
General and administrative expenses		13,422,821		1,238,296		392,425		1,947,622		17,001,164
Gain on asset dispositions and impairments, net		398,041		47,000		—		—		445,041
Income from operations	$	1,820,077	$	7,188,007	$	151,828	$	2,558,313		11,718,225
Other income, net										786,552
Income before income taxes										12,504,777
Provision for income taxes										66,621
Net income from continuing operations										12,438,156
Income from continuing operations attributable to non-controlling interests										1,549,978
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										10,888,178
Net income from discontinued operations										1,287,915
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	12,176,093

Depreciation and amortization expenses for the year ended December 31, 2019 for the retail, bulk, services and manufacturing segments were $2,364,994, $3,795,320, $120,761 and $922,027, respectively.

	As of December 31, 2019
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,891,165	$	18,883,493	$	678,119	$	500,882	$	22,953,659
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	$	158,358	$	1,621,029	$	61,238,752
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
Total segment assets	$	65,554,640	$	69,423,770	$	12,895,385	$	14,854,557	$	162,728,352
Assets of discontinued operations									$	29,289,022
Total assets									$	192,017,374

Revenues earned by major geographic region were:

	Year ended December 31,
	2020		2019
Cayman Islands	$	25,640,169	$	30,327,139
Bahamas		21,654,153		23,114,860
Indonesia		—		131
United States		24,918,527		14,968,868
Revenues earned from management services agreement with OC-BVI		415,277		382,653
	$	72,628,126	$	68,793,651

Revenues earned from major customers were:

	Year ended December 31,
	2020		2019
Revenue earned from the Water and Sewerage Corporation ("WSC")	$	21,527,487	$	22,877,741
Percentage of consolidated revenue earned from the WSC		30%		33%
Revenue earned from one manufacturing segment customer	$	9,965,041	$	9,238,476
Percentage of consolidated revenue earned from the one manufacturing segment customer		14%		13%

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

	December 31,
	2020		2019
Cayman Islands	$	28,474,748	$	29,059,294
The Bahamas		26,975,427		30,245,741
United States		2,237,809		1,933,717
	$	57,687,984	$	61,238,752