2006 was $0.8 million and net income, on a GAAP basis, for the year 2006 was $1.1 million.
Adjusted operating income (a non-GAAP financial measure defined in note 1 to the attached Consolidated Condensed Financial Information) for the year was $73.3 million, a 33.4% increase from the prior year of $54.9 million. Adjusted operating income was $18.4 million for the fourth quarter compared to $17.2 million in the prior year.
Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the attached Consolidated Condensed Financial Information) for 2006 was $84.0 million, or 40.2% of adjusted revenue, and increased 10.9% from $75.7 million in the prior year. Consolidated EBITDA for the fourth quarter was $22.0 million, or 40.6% of adjusted revenue, compared to $20.4 million in the prior year. Consolidated leverage, as defined in our credit agreement, was 5.5 times at December 31, 2006.
"During 2006, we reached an important milestone in SS&C's history as we surpassed the $200 million mark in revenue as a result of 28.8% revenue growth. We demonstrated a trend of double-digit revenue growth in each quarter of 2006 over comparable quarters in the prior year, and Q4 was no exception. We are pleased with our recurring revenues (which include maintenance and outsourcing revenues), which continued to grow at a healthy pace, up 33% over 2005, and represented 79.3% of our revenues for 2006," said Bill Stone, chairman and chief executive officer of SS&C Technologies.
"During 2006, we began accelerating our strategy for taking a leading place in the hedge fund administration business. Our acquisition of Cogent and diligent sales efforts have resulted in a growing market share amongst fund administrators, and we are rapidly gaining recognition for our capabilities. Of particular note, the 7th HFMWeek Hedge Fund Administrator survey cited SS&C as the fastest growing administrator among the top 10. Our combined outsourcing business has enjoyed revenue growth of 44% over 2005, and we expect this will continue to grow as more hedge funds, insurance companies and asset management firms determine they cannot cost effectively manage infrastructure and applications without losing focus on their core business."
Balance Sheet and Cash Flow
"We ended the year with $11.7 million of cash and cash equivalents on our balance sheet and a total debt position of $471.9 million. Our operating cash flow for the year was $30.7 million, and we used those funds to pay-down $17.1 million of debt and invest in our business with $4.2 million of property and equipment additions and $14.0 million for the acquisitions of Cogent and Zoologic," said Stone.