Consolidated Results
Including discontinued operations, net income attributable to Consolidated Water Co. Ltd. stockholders for 2021 was $875,579 ($0.06 per share on a fully diluted basis), as compared to $3,711,528 ($0.24 per share on a fully diluted basis) for 2020.
The following discussion and analysis of our consolidated results of operations and results of operations by segment for the year ended December 31, 2021 as compared to the year ended December 31, 2020 relates only to our continuing operations.
Net income from continuing operations attributable to Consolidated Water Co. Ltd. stockholders for 2021 was $3,449,658 ($0.23 per share on a fully diluted basis), as compared to $8,613,771 ($0.56 per share on a fully diluted basis) for 2020.
Total revenue for 2021 decreased to $66,863,502 from $72,628,126 in 2020, as the manufacturing segment experienced a significant revenue decline, which was not fully offset by revenue increases in our other segments. Gross profit for 2021 was $23,507,191 (35% of total revenue) as compared to $26,768,455 (37% of total revenue) for 2020. For further discussion of revenue and gross profit see the “Results by Segment” discussion and analysis that follows.
General and administrative expenses (“G&A expenses”) on a consolidated basis remained relatively consistent at $18,350,359 for 2021 as compared to $18,434,898 for 2020.
Other income, net, increased to $1,623,595 in 2021, as compared to $1,082,946 in 2020. This increase is primarily attributable to a gain of $818,000 in 2021 on the net put/call options associated with the acquisition of PERC as a result of the December 31, 2021 revaluation of these options. This net gain was offset by a reduction in income generated from our investment in the profit-sharing plan of OC-BVI and our equity in the earnings of OC-BVI, which in the aggregate were approximately $428,000 higher in 2020 than in 2021.
The COVID-19 pandemic had a material adverse impact on our consolidated results of operations for the years ended December 31, 2021 and 2020, and we believe the COVID-19 pandemic will continue to adversely impact our results of operations in future periods. See further discussion herein and at “LIQUIDITY AND CAPITAL RESOURCES – Material Commitments, Expenditures and Contingencies – COVID-19.”
Results by Segment
Retail Segment:
The retail segment incurred a net loss from operations of ($2,044,094) as compared to a loss from operations of ($1,004,924) for 2020.
Revenue generated by our retail water operations decreased to $22,104,953 in 2021 from $22,952,370 in 2020. The reduction in revenue reflects a 4% decrease in the volume of water sold by Cayman Water due to the closing of Grand Cayman Island to all tourist travel in March 2020 in response to the COVID-19 pandemic.
Retail segment gross profit decreased to $11,044,016 (50% of retail revenue) for 2021 as compared to $11,871,556 (52% of retail revenue) for 2020. This decrease in gross profit dollars is attributable to the revenue decline. The revenue decline also resulted in lower gross profit as a percentage of revenue for 2021 due to the resulting greater relative impact of fixed production and distribution costs.
Consistent with prior periods, we record all non-direct G&A expenses in our retail segment and do not allocate any of these non-direct costs to our other three business segments. Retail G&A expenses decreased to $12,841,259 for 2021 as compared to $12,879,445 for 2020.