And we certainly can explain what's going on with the margin pressure and really rampant cost increases in my career as president, which started in 1995, I haven't seen this since Hurricane Katrina back in August of 2005 when natural gas went through the roof.
For the third quarter of fiscal year 2021, Oil-Dri delivered net sales of 76.3 million, which was on par with our record third quarter in fiscal 2020.
The third-quarter net sales in our business-to-business products group decreased 1% from the prior year to 26.3 million.
Agricultural product revenues rose 7% in the third quarter compared to the last year, primarily resulting from increased sales to our existing customers.
Sales of animal feed additives increased 3% in the quarter versus the prior year, driven by higher demand within Asia and Latin America that was partially offset by lower revenues in China.
Third-quarter sales of our bleaching clay and fluids purification products declined by 3% from the prior year due to the timing of orders, improved crop conditions that require less material for purification, and the negative impact for the pandemic as many edible oil manufacturing plants have delayed plant tests or have unused product on-hand due to lower production.
Third-quarter net sales reached a record of 50 million, a 1% increase over the strong quarter in the prior year.
A 20% increase in our sales from our industrial and sports products drove much of this growth as commercial businesses are recovering since the pandemic and many sports fields have reopened.
Our third-quarter gross profit of 16.5 million was approximately 4.9 million lower than the third quarter of fiscal 2020.
This decline can be attributed to a 14% increase in cost of goods sold per manufactured tons driven by higher freight, packaging, materials, natural gas, and nonfuel manufacturing costs.
Domestic trucking supply constraints and elevated fuel costs resulted in a 28% increase in freight costs for manufactured tons compared to the same period last year.
A 19% increase in packaging costs for manufactured tons due to higher resin prices also contributed to the reduction in margin.
Natural gas and material costs for manufactured tons increased by 11% and 9% respectively in the third quarter over the prior year.
They were approximately 1.1 million lower than the prior year, representing a 7% in decrease.
During the third quarter, it was a negative 1%, compared to 17% in the same period in the prior year.
Net income attributable to Oil-Dri was 2.2 million in the third quarter, compared to 4.6 million during the third quarter of fiscal 2020, resulting from the impact primarily of the increased costs we discussed earlier.
And for the same reasons, our earnings per diluted common share of $0.32, compares to $0.65 in the third quarter of the prior year.
We ended the quarter with cash and cash equivalents of 30 million and have very little debt, equating to a debt of total capital ratio of about 6%.
Taking a year-to-date perspective here, during the first nine months of fiscal 2021, our accounts receivable increased 3.9 million, reflecting our sales growth, as well as a shift in our customer mix, which includes an increase of sales to foreign customers who tend to have longer term.
Our income taxes shifted from a 2.6 million payable balance included in accounts payable as of July 31, 2020, to a prepaid balance of 2.3 million as of April 30, 2021, representing a use of cash of 4.9 million during the first nine months of fiscal 2021.
The decrease in accrued expenses of 4.1 million for the nine months ending April 30 was primarily driven by a reduction in the incentive bonus accrual.
Year to date, we have repurchased approximately 82,000 shares of our common stock for $2.9 million.

Summary:
For the third quarter of fiscal year 2021, Oil-Dri delivered net sales of 76.3 million, which was on par with our record third quarter in fiscal 2020.
And for the same reasons, our earnings per diluted common share of $0.32, compares to $0.65 in the third quarter of the prior year.