Segment information

6 Months Ended

Jun. 30, 2022

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, 2022
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	6,526,803	$	8,423,749	$	5,055,483	$	1,061,092	$	21,067,127
Cost of revenue		3,118,411		5,647,583		3,865,867		959,769		13,591,630
Gross profit		3,408,392		2,776,166		1,189,616		101,323		7,475,497
General and administrative expenses		3,345,109		404,072		838,040		339,470		4,926,691
Gain on asset dispositions and impairments, net		1,200		—		4,080		—		5,280
Income (loss) from operations	$	64,483	$	2,372,094	$	355,656	$	(238,147)		2,554,086
Other income, net										397,982
Income before income taxes										2,952,068
Income tax provision										10,152
Net income from continuing operations										2,941,916
Income from continuing operations attributable to non-controlling interests										232,197
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										2,709,719
Loss from discontinued operations										(419,833)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	2,289,886

Depreciation and amortization expenses for the three months ended June 30, 2022 for the retail, bulk, services and manufacturing segments were $637,796, $704,841, $168,078 and $70,307, respectively.

	Three Months Ended June 30, 2021
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	5,674,790	$	6,711,971	$	3,763,239	$	551,524	$	16,701,524
Cost of revenue		2,781,909		4,386,794		2,878,409		589,559		10,636,671
Gross profit		2,892,881		2,325,177		884,830		(38,035)		6,064,853
General and administrative expenses		3,318,473		303,856		671,585		430,390		4,724,304
Gain (loss) on asset dispositions and impairments, net		3,360		—		—		(2,900,000)		(2,896,640)
Income (loss) from operations	$	(422,232)	$	2,021,321	$	213,245	$	(3,368,425)		(1,556,091)
Other income, net										233,114
Loss before income taxes										(1,322,977)
Income tax benefit										(6,845)
Net loss from continuing operations										(1,316,132)
Income attributable to non-controlling interests										197,138
Net loss from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										(1,513,270)
Loss from discontinued operations										(151,379)
Net loss attributable to Consolidated Water Co. Ltd. stockholders									$	(1,664,649)

Depreciation and amortization expenses for the three months ended June 30, 2021 for the retail, bulk, services and manufacturing segments were $632,953, $906,292, $204,000 and $70,134, respectively.

	Six Months Ended June 30, 2022
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	12,840,003	$	15,774,393	$	9,799,303	$	2,211,333	$	40,625,032
Cost of revenue		6,172,151		10,334,702		7,515,047		1,981,871		26,003,771
Gross profit		6,667,852		5,439,691		2,284,256		229,462		14,621,261
General and administrative expenses		6,795,515		714,375		1,618,014		664,904		9,792,808
Gain on asset dispositions and impairments, net		1,200		—		16,538		—		17,738
Income (loss) from operations	$	(126,463)	$	4,725,316	$	682,780	$	(435,442)		4,846,191
Other income, net										717,709
Income before income taxes										5,563,900
Income tax provision										56,425
Net income from continuing operations										5,507,475
Income from continuing operations attributable to non-controlling interests										473,627
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										5,033,848
Loss from discontinued operations										(1,027,147)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	4,006,701

Depreciation and amortization expenses for the six months ended June 30, 2022 for the retail, bulk, services and manufacturing segments were $1,253,481, $1,407,100, $327,077 and $141,515, respectively.

	Six Months Ended June 30, 2021
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	11,386,095	$	12,957,941	$	7,304,085	$	2,156,720	$	33,804,841
Cost of revenue		5,489,903		8,541,947		5,600,337		1,981,291		21,613,478
Gross profit		5,896,192		4,415,994		1,703,748		175,429		12,191,363
General and administrative expenses		6,689,483		681,359		1,393,605		724,343		9,488,790
Gain (loss) on asset dispositions and impairments, net		(246,640)		1,500		(433)		(2,900,000)		(3,145,573)
Income (loss) from operations	$	(1,039,931)	$	3,736,135	$	309,710	$	(3,448,914)		(443,000)
Other income, net										547,722
Income before income taxes										104,722
Income tax benefit										(9,505)
Net income from continuing operations										114,227
Income from continuing operations attributable to non-controlling interests										325,931
Net loss from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										(211,704)
Loss from discontinued operations										(464,173)
Net loss attributable to Consolidated Water Co. Ltd. stockholders									$	(675,877)

Depreciation and amortization expenses for the six months ended June 30, 2021 for the retail, bulk, services and manufacturing segments were $1,267,208, $1,860,052, $404,495 and $145,667, respectively.

	As of June 30, 2022
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,483,105	$	13,620,152	$	5,962,620	$	614,924	$	22,680,801
Inventory, current and non-current	$	2,736,689	$	4,339,891	$	—	$	1,421,746	$	8,498,326
Property, plant and equipment, net	$	25,397,237	$	23,308,053	$	708,496	$	1,524,553	$	50,938,339
Construction in progress	$	1,940,884	$	31,737	$	—	$	61,792	$	2,034,413
Intangibles, net	$	—	$	—	$	2,305,556	$	801,111	$	3,106,667
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	1,985,211	$	10,425,013
Total segment assets	$	62,530,143	$	68,320,138	$	21,643,203	$	8,533,535	$	161,027,019
Assets of discontinued operations									$	21,554,992
Total assets									$	182,582,011

	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