Tile Shop Holdings, Inc.

million for $3.4 million lower than our first quarter SG&A expenses in 2023. The decrease is due to a $2.9 million decrease in variable expenses and a $1 million decrease in depreciation expenses that was partially offset by a $600,000 increase in rent costs. Looking ahead, we continue to actively pursue a number of expense management initiatives focused on reducing controllable expenses. Turning our attention to the balance sheet, we ended the quarter with $88.8 million of inventory and continued to carry no debt. As Cab mentioned in his remarks, despite the challenging top-line results for the first quarter, we generated $18.6 million of operating cash flow and ended the quarter with a $24 million cash balance. With that, Cab and I are happy to take any questions.

Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. I'm showing no questions in the queue. I would now like to turn the call over back to Ken.

Great. Thank you for joining us today for our earnings conference call. We anticipate filing our Form 10-Q later today. Thank you for your interest in the tile shop, and have a great day.

Thank you for your participation in today's conference. This does conclude the program you may now disconnect.