Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Frank Louthan with Raymond James.
Frank Louthan – Raymond James
Good morning. I got several question sort of all getting around the same thing I can appreciate where can you give me guidance what has in the past but can you give us is there anyway you can give us an idea of the margin trends, EBITDA margin trends or some sort of guidance on what EBITDA is going to look like over the next 12 months, that kind of giving with where the sort what the yield which it appears to be very safe and what everything else in the industry that give an – lack of confidence in market has is there anything you can tell us about your expected margins or margin expansion of level of EBITDA for this year.
Steven Childers
Well, Frank this is Steve I will start with that and again we won't give specific guidance on CapEx for on EBITDA margins but to me to go to your question on the with respect to the dividend and security around that. A couple of things number one we would expect the payout ratio with things we did give guidance on the decline of reduction in CapEx improved cash interest, cash tax sustained similar even offsetting to have a neutral impact on the pension plan contribution. We'd expect the payout ratio to be at least as good as this year if not seeing in some improvement in the number. From an EBITDA prospective again we want give specific guidance on that, but the way to think about it is we told you our non-GAAP or what our GAAP pension expense was going to be for next year. But we're also looking for second year of PA synergies is going from $7 million to 11 million. We expect to see improvement on the margins on video and DSL product. And we're going to continue look at our headcount reductions, so looking at our cost structure with and without our integration efforts.
Frank Louthan – Raymond James
Okay. Will the improvement on the video and the DSL margins and the improvement in Pennsylvania. Will those help the EBITDA, help over the come with the EBITDA drag from the local business?
Steven Childers
Frank I could say, I don't know if it directly offset, they will certainly minimized the impact of that and again as we're trying to stress all the levels of cash flow that support the dividend. We are more on comfortable stay in at 70% range on the payout ratio for next year.
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