Segment information

12 Months Ended

Dec. 31, 2022

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, 2022
	Retail		Bulk		Services		Manufacturing		Total
Revenue	$	25,954,013	$	32,991,066	$	28,835,428	$	6,324,465	$	94,104,972
Cost of revenue		12,548,763		23,032,212		22,973,634		5,195,240		63,749,849
Gross profit		13,405,250		9,958,854		5,861,794		1,129,225		30,355,123
General and administrative expenses		14,552,866		1,570,732		3,461,294		1,485,342		21,070,234
Gain (loss) on asset dispositions and impairments, net		(39,397)		5,607		23,717		(2,631)		(12,704)
Income (loss) from operations	$	(1,187,013)	$	8,393,729	$	2,424,217	$	(358,748)		9,272,185
Other income, net										464,810
Income before income taxes										9,736,995
Provision for income taxes										396,739
Net income from continuing operations										9,340,256
Income from continuing operations attributable to non-controlling interests										1,112,913
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders										8,227,343
Net loss from discontinued operations										(2,371,049)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	5,856,294

Depreciation and amortization expenses for the year ended December 31, 2022 for the retail, bulk, services and manufacturing segments were $2,391,603, $2,836,794, $674,508 and $284,403, respectively.

	As of December 31, 2022
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,953,927	$	16,554,940	$	5,838,721	$	1,698,594	$	27,046,182
Inventory, current and non-current	$	2,759,659	$	4,037,684	$	—	$	3,481,486	$	10,278,829
Property, plant and equipment, net	$	27,697,490	$	22,510,658	$	759,409	$	1,561,988	$	52,529,545
Construction in progress	$	3,643,889	$	—	$	—	$	61,792	$	3,705,681
Intangibles, net	$	—	$	—	$	2,064,444	$	754,444	$	2,818,888
Goodwill	$	1,170,511	$	1,948,875	$	5,320,416	$	1,985,211	$	10,425,013
Total segment assets	$	65,853,789	$	56,118,243	$	36,319,078	$	13,054,971	$	171,346,081
Assets of discontinued operations									$	21,660,768
Total assets									$	193,006,849

	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	$	15,825,207	$	7,749,877	$	154,034,930
Assets of discontinued operations									$	22,319,927
Total assets									$	176,354,857

Revenue earned by major geographic region were:

	Year ended December 31,
	2022		2021
Cayman Islands	$	30,375,985	$	24,935,746
Bahamas		29,943,615		24,031,547
United States		33,338,466		17,489,851
Revenue earned from management services agreement with OC-BVI		446,906		406,358
	$	94,104,972	$	66,863,502

Revenue earned from major customers were:

	Year ended December 31,
	2022		2021
Revenue earned from the WSC	$	29,943,615	$	24,031,547
Percentage of consolidated revenue earned from the WSC		32%		36%
Revenue earned from one service segment customer	$	11,805,752	$	—
Percentage of consolidated revenue earned from the one service segment customer		13%		0%

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

	December 31,
	2022		2021
Cayman Islands	$	28,068,156	$	26,687,944
The Bahamas		22,031,690		24,004,707
United States		2,429,699		2,253,888
	$	52,529,545	$	52,946,539