We reported net sales of $279.9 million during the third quarter of 2021, which represents an increase of 32%, compared to $212.1 million during the third quarter of 2020.
More specifically, we posted net sales growth of 20.8% in our North American Fenestration segment; 19.3% in our North American Cabinet Components segment; and 85.8% in our European Fenestration segment, excluding the foreign exchange impact and despite the challenges presented by flooding in Germany during the quarter.
We reported net income of $13.7 million or $0.41 per diluted share for the three months ended July 31, 2021, compared to $10.8 million or $0.33 per diluted share for the three months ended July 31, 2020.
The increase from 19% to 25% will not be effective until tax years beginning on or after April 1, 2023.
Therefore, in Q3, we remeasured the deferred tax assets and liabilities that will reverse in 2023 at a new tax rate of 25%.
So to account for this change, we now estimate our tax rate to be approximately 28% this year.
On an adjusted basis, EBITDA for the quarter increased by 18.8% to $32.9 million, compared to $27.7 million during the same period of last year.
Cash provided by operating activities was $18.5 million for the three months ended July 31, 2021, compared to $45.1 million for the three months ended July 31, 2020.
Free cash flow came in at $12.3 million for the quarter, compared to $40.7 million in Q3 of last year.
Despite this pressure on inventory costs, we were still able to both repay $15 million in bank debt and repurchase approximately $1.8 million of our stock during the quarter.
Year to date, as of July 31, 2021, cash provided by operating activities was $47.4 million, compared to $47.6 million for the same period last year.
Free cash flow year to date as of July 31, 2021, was $31.4 million, compared to $26.9 million during the same period of 2020.
Our liquidity position continues to increase, and our leverage ratio of net debt to last 12 months adjusted EBITDA improved to 0.2 times as of July 31, 2021.
However, we do expect inflation, labor costs, and supply chain challenges to continue pressuring margins throughout the fourth quarter of this year.
In summary, on a consolidated basis, we are reaffirming net sales guidance of approximately $1.04 billion to $1.06 billion, and adjusted EBITDA of $125 million to $130 million in fiscal 2021.
Within just 14 days of the storms, the facility was back up and operating at full capacity, and not one customer was shut down because of this weather event.
And according to KCMA, the number of average backlog days within the industry has risen to 66.9 days versus prior-year levels of 37.7 days.
As a reminder, for the most part, we have contractual pass-throughs for the major raw materials we use in North America but there is often a contractual lag that can generally be anywhere from 30 to 90 days long.
But in North America, we are still looking to fill over 400 open positions.
On an annual basis, we have raised wages in North America by approximately $5.1 million, which is being covered largely by price increases that have been passed on to our customers.
Our North American Fenestration segment generated revenue of $147.8 million, which was approximately 21% higher than prior-year Q3 and compares favorably to Ducker window shipments growth of 14.2% for the calendar quarter ending June 30, 2021.
Adjusted EBITDA of $18.3 million in this segment was approximately 2.4% higher than prior-year Q3.
For the first nine months of fiscal 2021, this segment had revenue of $422.1 million and adjusted EBITDA of $55.2 million, which represents year-over-year growth of 23.6% and 38.1%, respectively.
This also represents adjusted EBITDA margin expansion of approximately 340 basis points when compared to the first nine months of fiscal 2020.
Our European Fenestration segment generated revenue of $71.1 million in the third quarter, which is $32.8 million or approximately 86% higher than prior year.
Excluding foreign exchange impact, this would equate to an increase of approximately 68%.
Adjusted EBITDA of $14.4 million for the quarter was $6.7 million better than prior year.
On a year-to-date basis, revenue of $181.9 million and adjusted EBITDA of $38 million resulted in margin expansion of approximately 540 basis points as compared to the first nine months of last year.
In our North American cabinet components segment reported net sales of $61.9 million in Q3, which was $10 million or approximately 19% better than prior year.
Adjusted EBIT in this segment was $2.5 million, which was $0.6 million less than prior year.
Year to date, this timing lag has impacted adjusted EBITDA by $6.4 million.
But if we adjust for this inflation, we would have realized approximately 400 basis points of margin expansion in this segment on a year-to-date basis.
Unallocated corporate and other costs were $2.2 million for the quarter, which is $1.3 million higher than prior year.

Summary:
We reported net sales of $279.9 million during the third quarter of 2021, which represents an increase of 32%, compared to $212.1 million during the third quarter of 2020.
We reported net income of $13.7 million or $0.41 per diluted share for the three months ended July 31, 2021, compared to $10.8 million or $0.33 per diluted share for the three months ended July 31, 2020.
However, we do expect inflation, labor costs, and supply chain challenges to continue pressuring margins throughout the fourth quarter of this year.
In summary, on a consolidated basis, we are reaffirming net sales guidance of approximately $1.04 billion to $1.06 billion, and adjusted EBITDA of $125 million to $130 million in fiscal 2021.