Segment information

12 Months Ended

Dec. 31, 2017

Segment Reporting Disclosure [Text Block]

16. Segment information

The Company has four reportable segments: retail, bulk, services and manufacturing. The retail segment primarily 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, The Bahamas and Belize under long-term contracts. The services segment provides desalination plant management and operating services to affiliated companies and design, construct and sell desalination plants to third parties. The manufacturing segment manufactures and services a wide range of water-related products and provides design, engineering, management, operating and other services applicable to commercial, municipal and industrial water production, supply and treatment as a result of our acquisition of 51% of the equity ownership of Aerex Industries, Inc. on February 11, 2016. 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 costs 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 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, 2017
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	23,225,066	$	31,621,756	$	469,347	$	6,990,496		62,306,665
Cost of revenues		10,372,199		21,066,207		469,797		4,963,962		36,872,165
Gross profit (loss)		12,852,867		10,555,549		(450)		2,026,534		25,434,500
General and administrative expenses		12,134,983		1,248,414		3,043,078		2,646,504		19,072,979
Long-lived asset impairment and disposition losses, net		1,640,158		-		-		1,400,000		3,040,158
Income (loss) from operations	$	(922,274)	$	9,307,135	$	(3,043,528)	$	(2,019,970)		3,321,363
Other income, net										1,522,233
Income before income taxes										4,843,596
Provision for (benefit from) income taxes										(888,977)
Net income										5,732,573
Loss attributable to non-controlling interests										(411,489)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	6,144,062

Depreciation and amortization expenses for the year ended December 31, 2017 for the retail, bulk, services and manufacturing segments were $2,008,992, $3,814,444, $44,934 and $1,603,971, respectively.

	As of December 31, 2017
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,406,595	$	10,177,620	$	1,155,318	$	1,308,313	$	15,047,846
Property, plant and equipment, net	$	23,172,382	$	25,420,819	$	84,339	$	1,847,524	$	50,525,064
Construction in progress	$	321,368	$	1,498,625	$	3,291	$	-	$	1,823,284
Intangibles, net	$	-	$	533,767	$	-	$	3,231,667	$	3,765,434
Goodwill	$	1,170,511	$	2,328,526	$	-	$	4,885,211	$	8,384,248
Land held for development	$	-	$	-	$	20,558,424	$	-	$	20,558,424
Total segment assets	$	52,095,524	$	75,785,323	$	24,488,173	$	13,111,875	$	165,480,895

	Year Ended December 31, 2016
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	23,505,619	$	29,647,034	$	835,770	$	3,887,284	$	57,875,707
Cost of revenues		10,294,298		19,488,550		751,139		3,090,834		33,624,821
Gross profit		13,211,321		10,158,484		84,631		796,450		24,250,886
General and administrative expenses		11,460,165		1,744,840		3,163,972		2,308,607		18,677,584
Long-lived asset impairment and (gain)/loss on dispositions, net		1,953,943		(1,000)		(271,726)		1,754,402		3,435,619
Income (loss) from operations	$	(202,787)	$	8,414,644	$	(2,807,615)	$	(3,266,559)		2,137,683
Other income, net										103,573
Income before income taxes										2,241,256
Provision for (benefit from) income taxes										(536,057)
Net income										2,777,313
Loss attributable to non-controlling interests										(1,183,188)
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	3,960,501

Depreciation and amortization expenses for the year ended December 31, 2016 for the retail, bulk, services and manufacturing segments were $2,468,846, $3,288,083, $116,151 and $1,548,188, respectively.

	As of December 31, 2016
	Retail		Bulk		Services		Manufacturing		Total
Accounts receivable, net	$	2,646,628	$	12,692,714	$	629,930	$	531,526	$	16,500,798
Property, plant and equipment, net	$	24,890,031	$	26,124,724	$	91,030	$	1,978,320	$	53,084,105
Construction in progress	$	134,392	$	743,296	$	-	$	7,806	$	885,494
Intangibles, net	$	-	$	599,960	$	15,516	$	4,580,000	$	5,195,476
Goodwill	$	1,170,511	$	2,328,526	$	-	$	6,285,211	$	9,784,248
Land held for development	$	-	$	-	$	20,558,424	$	-	$	20,558,424
Total segment assets	$	54,303,011	$	68,663,628	$	25,558,495	$	15,079,394	$	163,604,528

	Year Ended December 31, 2015
	Retail		Bulk		Services		Manufacturing		Total
Revenues	$	23,254,757	$	31,854,255	$	2,007,190	$	-	$	57,116,202
Cost of revenues		10,543,972		21,634,789		1,629,221		-		33,807,982
Gross profit		12,710,785		10,219,466		377,969		-		23,308,220
General and administrative expenses		11,095,349		1,605,943		2,138,864		-		14,840,156
Long-lived asset impairment and (gain)/loss on dispositions, net		33,166		(600)		-		-		32,566
Income (loss) from operations	$	1,582,270	$	8,614,123	$	(1,760,895)	$	-		8,435,498
Other income (expense), net										(510,004)
Net income										7,925,494
Income attributable to non-controlling interests										406,793
Net income attributable to Consolidated Water Co. Ltd. stockholders									$	7,518,701

Depreciation and amortization expenses for the year ended December 31, 2015 for the for the retail, bulk and services segments were $2,344,315, $3,389,717 and $102,901, respectively.

Revenues earned by major geographic region were:

	Year Ended December 31,
	2017		2016		2015
Cayman Islands	$	30,218,830	$	31,211,705	$	32,735,215
Bahamas		21,528,494		19,554,944		21,062,081
Indonesia		159,856		91,311		368,012
Belize		2,939,643		2,614,989		2,422,547
United States		6,990,496		3,887,284		-
Revenues earned from management services agreement with OC-BVI		469,346		515,474		528,347
	$	62,306,665	$	57,875,707	$	57,116,202

Revenues earned from major customers were:

	Year Ended December 31,
	2017			2016			2015
Revenues earned from the Water and Sewerage Corporation ("WSC")	$	21,307,993		$	19,254,396		$	20,770,347
Percentage of total revenues from the WSC		34	%		33	%		36	%
Revenues earned from the Water Authority - Cayman ("WAC")	$	7,153,620		$	7,477,101		$	8,369,627
Percentage of total revenues from the WAC		11	%		13	%		15	%

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

	December 31,
	2017		2016
Cayman Islands	$	23,182,334	$	24,252,351
Bahamas		24,511,285		25,180,669
Belize		841,293		907,752
Indonesia		-		612,568
United States		1,847,524		1,978,321
Other		142,628		152,444
	$	50,525,064	$	53,084,105