On a U.S. GAAP basis, we reported net income of $2 million for the third quarter, flat when compared to the prior year quarter. The current year includes the loss on extinguishment of debt resulting from the refinancing transaction of $27 million. The 2023 and 2022 third quarter results include income of $3 million and $5 million, respectively, related to noncash changes in workers’ compensation and employee benefit reserves. Excluding these current and prior year quarter items, income for 2023 was $26 million compared to a loss of $3 million in the prior year quarter, reflecting an improvement of $29 million. Operational EBITDA for the quarter was $12 million compared to $7 million in the prior year quarter. Excluding the impact of noncash changes in workers’ compensation and employee benefit reserves in the current and prior year quarters, and the favorable impact of foreign exchange in the current quarter, operational EBITDA improved by $6 million when compared to the prior year quarter.
Operational EBITDA for the third quarter of 2023 was favorably impacted by pricing rationalization and improved operational efficiency, executing on cost controls, partially offset by higher continued ongoing global cost increases and lower volume. Turning to Slide 8 for the 9 months ending September 30, 2023. We reported revenues of $842 million compared to $900 million in the prior year period for a decrease of $58 million. Adjusting for the unfavorable impact of foreign exchange of $4 million in the current year, revenue decreased by $54 million or 6% compared to the prior year. We also reported significantly higher gross profit with an increase of $36 million or 28% when compared to the prior year period. Foreign exchange had no impact on gross profit in the current year period.
Our gross profit percentage was 19% for the 9 months ending September 30, 2023, compared to 14% in the prior year. As we have consistently stated, we will prioritize smart revenue rather than trading profitability for revenue growth. These results reflect our disciplined approach to make our operations more efficient to better serve our customers. On a U.S. GAAP basis, net income was $70 million for the 9 months ending September 30, 2023, compared to net income of $19 million in the prior year. The 2023 year-to-date results include charges of $2 million related to changes in the fair value of the embedded derivative liabilities, $27 million related to a loss on the extinguishment of debt, income of $9 million related to a refund from a non-U.S. governmental authority and income of $3 million related to noncash changes in workers’ compensation and employee benefit reserves.
The year-to-date period of 2022 results include income of $1 million related to changes in the fair value of the embedded derivative liabilities, an income of $13 million related to noncash changes in workers’ compensation and employee benefit reserves. Excluding these current and prior year items, income for 2023 was $87 million compared to income of $5 million in the prior year period, reflecting an increase of $82 million from the prior year period. Operational EBITDA for the period was $43 million compared to $11 million in the prior year period. Excluding the favorable impact of noncash changes in workers’ compensation and employee benefit reserves in the current and prior year, operational EBITDA increased by $42 million. Foreign exchange had no impact on the change in operational EBITDA.
Operational EBITDA for 2023 was favorably impacted by growth in gross profit due to the factors described above. Moving on to the company’s cash performance presented on Slide 9. The company ended the second quarter with $246 million in cash and cash equivalents, an increase of $29 million from December 31, 2022. For the 9 months ending September 30, 2023, cash provided by operating activities was $21 million driven primarily by positive cash flow from net earnings of $15 million and cash provided from balance sheet changes of $6 million, including a use of cash for working capital of $35 million and an increase in other liabilities of $23 million. Accounts payable decreased by $15 million, inventory increased by $4 million and accounts receivable increased by $16 million.
