We have recognized improvements in gross profit with an increase of $4 million or 9% when compared to the prior year quarter. Excluding the favorable impact of foreign exchange, gross profit improved $2 million or 5% when compared to the prior year quarter. Our gross profit percentage was 17% in the fourth quarter of 2023 compared to 14% in the prior year quarter. This improvement is a result of the actions our team has taken to mitigate the effects of the global economy, to make our operations more efficient, and to realize the value of our product offerings. These actions have established positive momentum as we continue to drive profitable growth going forward. On a U.S. GAAP basis, we reported net income of $5 million for the fourth quarter compared to net income of $7 million in the prior year quarter.
A decrease of $2 million, the 2023 and 2022 fourth quarter results include expense of $2 million and income of $2 million, respectively, related to non-cash changes in workers’ compensation and employee benefit reserves. And expense of $5 million and $1 million, respectively, related to asset impairments. The fourth quarter of 2022 results also include income of $2 million related to changes in the fair value of embedded derivative liabilities and income of $1 million related to legal settlements. Excluding these current and prior quarter items, net income for 2023 was $12 million compared to net income of $3 million in the prior year quarter, reflecting an improvement of $9 million. Operational EBITDA for the quarter was a positive $2 million compared to a positive $7 million in the prior year quarter.
A decline of $5 million, excluding the impact of non-cash changes in workers’ compensation and employee benefit reserves in both the current and prior year periods, and the favorable impact of foreign exchange in the current year period, operational EBITDA decreased by $3 million when compared to the prior year quarter. Operational EBITDA for 2023 was unfavorably impacted by higher costs associated with investments in information technology systems and organizational structure to drive further operational efficiencies, partially offset by profitability related to pricing rationalization. Moving on to the company’s fourth quarter cash performance presented on Slide 8. The company had a year-end cash balance of $255 million compared with $246 million at the end of the third quarter of 2023, an improvement of $9 million from the prior period.
Throughout the year, our team improved profitability and performance in working capital, which enhanced the company’s ability to generate cash, which we delivered in three of the last four consecutive quarters. For the quarter ending December 31, 2023, cash provided by operating activities was $17 million compared to $14 million in the prior year quarter, reflecting an improvement of $3 million. Current quarter cash provided by operating activities was primarily driven by a use of cash from net earnings of $15 million and cash provided by balance sheet changes of $32 million, including a change in working capital of $24 million and a decrease in other liabilities of $2 million. Cash provided by working capital was driven by actions taken to mitigate inflation and rising costs, including cost-cutting efforts, improved inventory management, and implementation and pricing actions, all of which have more than offset these negative impacts of the global economy.
Cash used in investing activities was $17 million in the current year period, an increase of $5 million when compared to the prior year period, primarily resulting from an increase in capital expenditures as we continue to invest in growth initiatives. Cash used in financing activities was $2 million for both the current year and prior year period, reflecting no change. Restricted cash decreased by $6 million, when compared to the prior year period, primarily due to a change in the security deposit collateral required, for the New York State Workers’ Compensation Board. As presented on the bottom portion of the slide, excluding the effects of foreign exchange, the quarter-over-quarter increase in cash, and cash equivalents, for the three months ended December 31, 2023, was $9 million.
On Slide 9, for the full year of 2023, the company had revenues of $1.117 billion, compared to $1.205 billion in the prior year, for a decline of $88 million or 7%, adjusting for the favorable impact of foreign exchange of $1 million, revenue declined by $89 million or 7%, compared to the prior year. Gross profit improved $40 million, or 24% when, compared to the prior year. Excluding the impact of foreign exchange, gross profit improved $38 million, or 22%, compared to the prior year. Our gross profit percentage, was 19% for the full year of 2023, compared to 14% in the prior year. This is a result of the many actions our team has taken, including driving smart revenue, pricing rationalization, cost reduction, and customer-focused initiatives, to mitigate the effects, of the global economy, and to make our operations more efficient.
On a U.S. GAAP basis, we reported net income of $75 million for 2023, compared to net income of $26 million in 2022, an improvement of $49 million from the prior year. The 2023 and 2022 results, include expense of $2 million, and income of $3 million, respectively, related to changes in the fair value of embedded derivative liabilities, income of $1 million and $15 million, respectively, related to non-cash changes in workers’ compensation and employee benefit reserves, and expense of $5 million and $1 million, respectively, related to asset impairments. The current year, also includes a loss and early extinguishment of debt of $27 million, resulting from the refinancing transaction and income from a refund from a non-U.S. governmental authority of $9 million.
The 2022 results also include income of $1 million related, to legal settlements. Excluding the impact of these current and prior year items, the 2023, adjusted net income was $99 million, compared to income of $8 million in the prior year, an improvement of $91 million, year-over-year. Operational EBITDA for 2023, was $45 million, compared to $18 million in 2022, an improvement of $27 million, or 150% from the prior year. Excluding the impact of non-cash changes in workers’ compensation and employee benefit reserves in 2023 and 2022, and the favorable impact of foreign exchange in the current year, operational EBITDA increased, by $39 million from the prior year. Operational EBITDA for 2023, was favorably impacted, by profitability relating to pricing rationalization, and improved operational efficiency, executing on cost controls, partially offset by higher continued ongoing global cost increases, and lower volumes.
