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#Actually a good question and even broader than that, as we've said before, we've clearly done a tremendous amount of work in the Building Products arena, at uncovering potential acquisitions.
<UNK>though it is not our number-one priority right now to go add businesses to the current portfolio, we are not going to withdraw ourselves completely from the market.
So we will continue to look at any or all opportunities.
However now for the first time, in addition to the economic and strategic issues, we need to look at those potential opportunities with the backdrop of our current leverage profile.
And we have no desire or intention to significantly increase that profile.
But we do have the fire power to add some bolt-on deals if they are not that expensive.
So we will continue to look and evaluate accordingly, but the priority will be improve profitability, pay down debt, but if an opportunity arises, you can't afford not to look at it.
Yes, I mean, I think we talked about it at the time of the announcement that it is going to be like $0.11, so obviously the borrowing was ---+ we were out in a difficult time.
So I would say if you did it purely on the incremental, you're closer to mid single digits, so it's kind of in $0.04 to $0.05 range.
Yes, the way our facility works is, we have the opportunity, there's a hard call for 12 months with the 1% premium, but we can do it with the 1% premium whenever.
I think the reality to it would be, we will need to deliver a couple few quarters, and then if the markets are right there whether it's a repricing or an overall refinancing, could do so, call it, 9 to 12 months down the road.
Well I think clearly the vinyl business still has the opportunity to improve their margins, perhaps more than any other segment of the business, in terms of order of magnitude.
Having said that, they still face the toughest market conditions, in trying to get price increases, but there is still a lot to be done there on the cost side.
We believe that there is still a good opportunity for further improvement at Woodcraft, and we have our operating teams already in there working on initiatives for margin improvement, most of which won't show up until the second half of the year.
The components business and the spacer business, I don't think we'll see a great deal of margin expansion there, absent operating leverage.
And in HL, a similar story.
Margins are pretty decent there anyway, so I think that will be the way we would rank order them.
Yes, we haven't talked that much.
Our corporate cost came in for 2015 right in line with expectations, and in the past, we've talked about that being in the $35 million level.
So we may have slightly elevated corporate costs next year, only because we will bear a bit of an additional integration cost with Woodcraft, and so there's some things we'll do from a Sarbanes-Oxley implementation and things like that, that will ramp those up a little bit.
But nothing significant in the grand scheme of things.
I was just saying we haven't given really the guidance overall on the combined Company SG&A.
Yes, that is.
The thinking there is 2016 benefits from the NOLs, and then as we look out into future years, the growth and improved margin offset the lack of NOLs at that point.
It's pretty clear.
Most of that improvement came out of the vinyl profile business, which if you'll recall, was really anticipated after the investment in line upgrades.
We said the second half of the year, we should start reaping the benefits of that.
We expect that to continue into 2016, so we aren't going to give a great deal of granularity on that at this point, but that's where the bulk of it is coming from.
It's one of the reasons why I answered in an earlier question that the growth rate in our spacer business in fact lagged the other components.
A big factor there, so we never really talked about in the past, is we used to sell several million dollars of spacer product into Russia and the Ukraine, and in 2015, that number is zero.
It just disappeared completely.
And probably is not going to come back, and that's simply because of the geopolitical issues there, but that's where that comment came from.
It was several million dollars worth of business.
There, I mean I think, are you asking about the line we've talked in the past, about the line speeds and things like that for our customer.
Yes, the first prototype at a customer out in California has been extremely successful, and they are talking internally now about funding a further expansion to add more lines.
We have a second customer with a different manufacturer's line that just started up, and in fact, I'll be visiting with the customer's senior executive team.
That facility, actually next week, to see that line running.
But the early indications there are that's going to be a very successful opportunity.
That's a multi-year program in its early stages.
We'll start seeing some benefits with improved volumes later in 2016, but it should really take off in 2017 and beyond.
Yes, clearly, we expect continued margin improvement in the businesses, so a good portion of getting from call it 11.5% to 15% is actually going to come out of a better cost structure in a number of the businesses.
And as I said with the earlier question, the opportunities there are still in the vinyl business, and in the cabinet component business.
We will get operating leverage, particularly in spacers, as we see growth.
So the combination of those, as you go out over the next few years, that's what's going to get us to 15%.
Yes, I would not expect to see in 2016 any consolidation moves with our current business.
We're okay with the footprint as it is.
We have the capability with the current footprint to grow with the conservative numbers we put out there, but we could handle double that growth rate if it actually occurred, and it wouldn't be an issue for us.
But with the potential exception of labor in some jurisdictions, which continues to be tight.
No, the input costs are effectively now margin neutral.
So while the petroleum surcharge, which went negative on us, effectively reduced revenue numbers, it was margin neutral.
The same applies to aluminum, which has been a drop in through the year.
That's for the most part margin-neutral as well, and as we now know, resin is margin-neutral, so really, none of the benefit really came from reduced input costs.
It really was a question of efficiency and reduced labor costs inside the operations.
I mean the primary consideration at Woodcraft is the business model is identical to our fenestration components business.
It does diversify the customer base.
It will really impact the seasonality of our business, too.
As you know, cabinet installation is indoor work, so isn't as affected by the weather.
So it will be particularly helpful in our first quarter, although let me just footnote that by saying we will not see the benefits of that this first quarter because of purchase accounting and transaction costs.
But it will definitely dampen the seasonality of our business, and we do see opportunities there to take a very profitable business and improve the margin profile, as we start getting our arms around it.
Let me cover your last question first.
On the reporting segment, we will do some additional splitting out here in the 10-K that you'll see the next few days, as a result of making the acquisition of HL Plastics.
But then, we will again reassess that in our 2016 reporting, because that will be the first time we will be including Woodcraft.
So I don't want to commit with certainty, but we would expect there to be some line of sight of these acquisitions, as we go through that financial reporting process.
To your earlier question on the growth rate, I'd hazard to not jump into providing the overall guidance of what the growth is.
But I think if you attribute some of the additional cost at the corporate level, which is classified theoretically as legacy, to really the acquisition of Woodcraft and some of the integration, you could get into a little bit of a 50/50 a split, with some added growth at HL Plastics.
Just because of where they are in their cycle, and how the UK market is performing we would expect higher than legacy like growth at HL Plastics.
International is almost exclusively the UK, and what I would call core Western Europe.
Germany, France, Belgium.
The Russia Ukraine thing was a little bit of an aberration, and that product was actually delivered out of North America, not out of our European operations.
But the bulk of it is ---+ more than two-thirds of our international volume is going to be UK-based, so I think better stability there.
We don't envision another Russia Ukraine situation.
That really was a bit of an aberration.
No surprises, positively or negatively, in both cases as advertised, so a testimony to our due diligence process.
The next focus really is going to be on productivity improvements, particularly as it relates to labor.
We haven't had the severe shortages of labor that the home builders have, but in a number of our jurisdictions, it's getting increasingly difficult to find qualified labor as we grow.
So we are looking more and more towards automation, so we are going to be investing in some automation projects in our legacy businesses, that really are all part of that how do we get to 15% EBITDA margins, and how do we continue to grow in tight and expensive labor markets.
So that's really the focus in 2016.
Yes, and some of it we would hope to see as we start exiting 2016, but the real expansion should be in 2017, you're right.
Yes.
I think as we get into the second half, that comp does become much more difficult, and thereafter, it's going to be pretty much normalized.
No.
The immediate focus at HL is going to be to continue to grow in the UK market.
They still have some runway there to perform at above a normal growth rate, and that's the intent.
So there are no current plans to expand that into mainland Europe at this point.
That's still under investigation.
As we said when we did the acquisition, there were no benefits built into the transaction for any kind of cross-selling opportunities.
We recently put in place a new leader in the Edgetech business in the UK, and he is starting to work with Roger at HL on exploring what opportunities there might be.
So that's still a work in progress, and any benefits there will be upside to anything we have put on the table thus far.
That is already in process.
That's in work.
What I mean in terms of comps is by the time we get into 2017, when we start comparing 2017 to 2016, or the back half of 2016 to the back half of 2015, the opportunity for incremental improvement is going to start diminishing.
So by normalized, I mean you could expect maybe whatever we close at, at 2016, 2017's are going to be similar.
There isn't going to be the opportunity probably for 500 basis points improvements at that point.
I know.
You never give up, <UNK>.
Okay, thank you.
I want to thank everyone for joining us on today's call.
Stay tuned for more information about our Spring Investor Day, and we look forward to updating you next on our first-quarter results in early March.
Thanks, everybody.
