Segment information

12 Months Ended

Dec. 31, 2021

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, 2021
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	22,104,953	$	26,800,869	$	13,884,857	$	4,072,823	$	66,863,502
Cost of revenue		11,060,937		17,759,272		10,707,243		3,828,859		43,356,311
Gross profit		11,044,016		9,041,597		3,177,614		243,964		23,507,191
General and administrative expenses		12,841,259		1,365,735		2,762,735		1,380,630		18,350,359
Gain (loss) on asset dispositions and impairments, net		(246,851)		1,500		(485)		(2,900,000)		(3,145,836)
Income (loss) from operations	$	(2,044,094)	$	7,677,362	$	414,394	$	(4,036,666)		2,010,996
Other income, net										1,623,595
Income before income taxes										3,634,591
Benefit from income taxes										(447,982)
Net income from continuing operations										4,082,573
Income from continuing operations attributable to non-controlling interests										632,915
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										3,449,658
Net loss from discontinued operations										(2,574,079)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	875,579

Depreciation and amortization expenses for the year ended December 31, 2021 for the retail, bulk, services and manufacturing segments were $2,517,407, $3,331,554, $782,882 and $289,390, respectively.

	As of December 31, 2021
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,601,619	$	21,682,951	$	1,698,797	$	1,365,940	$	27,349,307
Inventory, current and non-current	$	2,787,277	$	3,860,808	$	—	$	589,757	$	7,237,842
Property, plant and equipment, net	$	26,357,390	$	24,476,936	$	512,493	$	1,599,720	$	52,946,539
Construction in progress	$	617,334	$	31,737	$	—	$	61,792	$	710,863
Intangibles, net	$	—	$	—	$	2,553,888	$	847,778	$	3,401,666
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	1,985,211	$	10,425,013
Total segment assets	$	61,736,441	$	68,723,405	$	16,049,001	$	8,198,280	$	154,707,127
Assets of discontinued operations									$	22,319,927
Total assets									$	177,027,054

	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

Revenues earned by major geographic region were:

	Year ended December 31,
	2021		2020
Cayman Islands	$	24,935,746	$	25,640,169
Bahamas		24,031,547		21,654,153
United States		17,489,851		24,918,527
Revenues earned from management services agreement with OC-BVI		406,358		415,277
	$	66,863,502	$	72,628,126

Revenues earned from major customers were:

	Year ended December 31,
	2021		2020
Revenue earned from the Water and Sewerage Corporation ("WSC")	$	24,031,547	$	21,527,487
Percentage of consolidated revenue earned from the WSC		36%		30%
Revenue earned from one manufacturing segment customer	$	406,073	$	9,965,041
Percentage of consolidated revenue earned from the one manufacturing segment customer		1%		14%

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

	December 31,
	2021		2020
Cayman Islands	$	26,687,944	$	28,474,748
The Bahamas		24,004,707		26,975,427
United States		2,253,888		2,237,809
	$	52,946,539	$	57,687,984