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Gross profit margin increased 400 basis points, 35.6% for the third quarter of this year.
As a result of the gross margin expansion, our adjusted operating margin increased 500 basis points to 11.8%.
And our adjusted EBITDA margin increased 370 basis points to 14.8%.
We generated solid free cash flow of $16.2 million during the third quarter and as a result we had $84 million of cash on hand as of September 30th.
We also had $194 million available under our credit facility and our debt to EBITDA ratio was only 1.1 times.
Net sales for the third quarter were $132 million, an increase of 5% compared with the third quarter of 2019.
Gross profit margin increased 400 basis points to 35.6%.
Also gross profit in 2019 included a $3.5 million charge for estimated product replacement costs.
Our adjusted operating income increased 83%, the $15.6 million for the quarter.
Adjusted EBITDA increased 40% to $19.6 million and adjusted EBITDA margin was 14.8%.
Adjusted diluted earnings per share was $0.30 compared with $0.15 for the third quarter of 2019.
In the Material Handling segment, net sales increased 3%.
Sales of fuel containers in our consumer end market were up nearly 40% primarily as a result of increased storm activity.
Sales in our vehicle end market were down double-digits as higher sales to RV customers were more than offset by lower sales to automotive OEMs. Material Handlings adjusted operating income was up 59% to $16.5 million due to higher sales volume, lower depreciation and amortization expense and favorable price cost margin.
Also in 2019 adjusted operating income included a $3.5 million charge for estimated product replacement costs.
In the Distribution segment, sales increased 10% due to $2.9 million of incremental sales from the August 2019 Tuffy acquisition, and higher domestic sales in the legacy business.
Distribution's adjusted operating income increased 41% to $5.1 million primarily as a result of higher sales volume and lower SG&A expenses.
For the third quarter of 2020, we generated free cash flow of $16.2 million compared with $22.1 million last year.
Working capital as a percent of sales at the end of the third quarter was 9.2%, which was up compared to Q3 of last year but was lower than last quarter.
Cash on the balance sheet at the end of the third quarter was $84 million and our debt to adjusted EBITDA ratio was 1.1 times, which is consistent with previous quarters.
That said, we do not expect the increased demand we experienced in the second and third quarters to continue into the fourth quarter.
Turning to slide eight, you can see our guidance for 2020.
On a consolidated basis, we now anticipate full year sales to decline in the low to mid single-digit percentage range, which is a slight improvement from our previous expectation of the decline in the mid to high single-digit range.
We continue to expect depreciation and amortization to be approximately $21 million.
Net interest expense to be approximately $4 million.
A diluted share count of approximately $36 million shares.
And capital expenditures to be roughly $15 million.
Lastly, we anticipate that the adjusted effective tax rate will be approximately 26%.
The experience we gained from completing the bolt-ons and Horizon 1, will prepare us to successfully execute larger acquisitions under Horizon two.
I can see a path to grow Myers to approximately $2 billion in revenue while largely staying in the United States.

Summary:
Adjusted diluted earnings per share was $0.30 compared with $0.15 for the third quarter of 2019.
That said, we do not expect the increased demand we experienced in the second and third quarters to continue into the fourth quarter.
Turning to slide eight, you can see our guidance for 2020.
On a consolidated basis, we now anticipate full year sales to decline in the low to mid single-digit percentage range, which is a slight improvement from our previous expectation of the decline in the mid to high single-digit range.