Saga Communications (SGA) 8-K Saga Communications, Inc. Reports 3rd Quarter 2004 Results

Exhibit 99.1

Saga Communications, Inc.
Reports 3^rd Quarter 2004 Results

Contact:
Samuel D. Bush
313/886-7070

Grosse Pointe Farms, MI – October 28, 2004 – Saga Communications, Inc. (NYSE-SGA) today reported net income of $4.3 million ($.20 per fully diluted share) for the quarter ended September 30, 2004 compared to $3.5 million ($.16 per fully diluted share) for 2003. For the same period, operating income increased 2.6% to approximately $8.3 million. Net operating revenue increased 12.6% to approximately $34.3 million and station operating expense increased 17.3% to approximately $24.0 million (station operating expense now includes depreciation and amortization attributable to the stations). On a same station basis for the quarter, net operating revenue increased 6.7% to approximately $32.5 million, station operating expense increased 9.5% to approximately $22.4 million and operating income increased 0.2% to approximately $8.1 million.

For the nine month period ended September 30, 2004 net income was $11.7 million ($.55 per fully diluted share) compared to $9.4 million ($.44 per fully diluted share) for 2003. For the same period operating income increased 13.5% to approximately $22.7 million. Net operating revenue increased 11.5% to approximately $98.6 million and station operating expense increased 10.5% to approximately $69.9 million (station operating expense now includes depreciation and amortization attributable to the stations). On a same station basis for the nine month period, net operating revenue increased 6.1% to approximately $93.7 million, station operating expense increased 3.8% to approximately $65.6 and operating income increased 10.5% to approximately $22.2 million.

Capital expenditures in the third quarter of 2004 were approximately $4.0 million with approximately $1.2 million being spent as a result of acquisitions. For the nine months ended September 30, 2004, capital expenditures were approximately $8.3 million with $2.7 million being spent as a result of acquisitions. For the year ending December 31, 2004, total capital expenditures are expected to approximate $9.5 — $10.0 million net of insurance proceeds with approximately $4.0 million being spent as a result of acquisitions, $1.5 million on our Victoria television tower project, and $1 million on our Portland tower projects.

The attached Selected Supplemental Financial Data table discloses “as reported,” “same station” and “pro forma” information by segment. The “as reported” amounts reflect our historical financial results and include the results of operations for stations that we did not own for the entire comparable period. The “same station” amounts reflect only the

results of operations for stations that we owned for the entire comparable period. The “pro forma” amounts assume the 2004 and 2003 acquisitions and dispositions occurred as of January 1, 2003.

Saga Communications utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to access its financial performance. Such non-GAAP measures include station operating income, same station financial information, pro forma station operating income and free cash flow. These non-GAAP measures are generally recognized by the broadcasting industry as measures of performance and are used by Saga to assess its financial performance including but not limited to evaluating individual station and market-level performance, evaluating overall operations and as a primary measure for incentive based compensation of executives and other members of management. Saga’s management believes these non-GAAP measures are used by analysts who report on the industry and by investors to provide meaningful comparisons between broadcasting groups, as well as an indicator of their market value. These measures are not measures of liquidity or of performance in accordance with GAAP, and should be viewed as a supplement to and not as a substitute for the results of operations presented on a GAAP basis including net operating revenue, operating income, and net income. Reconciliations for all of the non-GAAP financial measures to the most directly comparable GAAP measure are attached in the Selected Financial Data Non-GAAP Disclosures tables.

Saga Communications, Inc. is a broadcasting company whose business is devoted to acquiring, developing and operating broadcast properties. The company owns or operates broadcast properties in 24 markets, including 53 FM and 26 AM radio stations, 3 state radio networks, 2 farm radio networks, 5 television stations and 3 low power television stations. Additionally, Saga has entered into agreements to acquire an AM and FM serving the Asheville, NC radio market, 2 FMs and 2 AMs serving the Ithaca NY radio market and 2FMs and 1 AM serving the Charlottesville, VA radio market. For additional information contact us at 313/886-7070 or visit our website at www.sagacommunications.com.

Saga’s third quarter results conference call will be on Thursday, October 28 at 2:00PM EDT. The dial in number for domestic calls is 800/450-0788. For international callers the number is 612/332-0637. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 749363. Thereafter, a transcript of the call will be available on our website.

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “believes”, “expects”, “anticipates”, “guidance” and similar expressions are intended to identify forward-looking statements. Key risks, including risks associated with Saga’s ability to effectively integrate the stations it acquires and the impact of federal regulation on Saga’s business, are described in the reports Saga Communications, Inc. periodically files with the U.S. Securities and Exchange Commission. Readers should note that these

statements may be impacted by several factors, including national and local economic changes and changes in the radio and television broadcast industry in general, as well as Saga’s actual performance. Results may vary from those stated herein and Saga undertakes no obligation to update the information contained here.

Saga Communications, Inc.
Selected Consolidated Financial Data
For The Three and Nine Month Periods
Ended September 30, 2004 and 2003
(amounts in 000’s except per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2004			2003			2004			2003
Operating Results
Net revenue	$	34,262		$	30,433		$	98,562		$	88,364
Station operating expense		24,006			20,470			69,924			63,281
Corporate general and administrative		1,927			1,844			5,938			5,084
Operating income		8,329			8,119			22,700			19,999
Interest expense		1,036			1,081			3,216			3,773
Other (income) expense, net		210			1,215			283			850
Income before income tax		7,083			5,823			19,201			15,376
Income tax expense		2,765			2,356			7,491			6,031
Net income	$	4,318		$	3,467		$	11,710		$	9,345
Earnings per share:
Basic	$	.21		$	.17		$	.56		$	.45
Diluted	$	.20		$	.16		$	.55		$	.44
Weighted average common shares		20,750			20,810			20,792			20,810
Weighted average common shares and common equivalents		21,116			21,292			21,227			21,303
Free Cash Flow
Net Income	$	4,318		$	3,467		$	11,710		$	9,345
Plus Depreciation and amortization:
Station		1,783			1,632			5,176			5,133
Corporate		49			50			148			149
Deferred tax provision		1,135			793			3,074			2,128
Less: Capital expenditures		(3,986	)		(2,207	)		(8,249	)		(6,410	)
Free cash flow	$	3,299		$	3,735		$	11,859		$	10,345
Balance Sheet Data
Working capital							$	20,425		$	31,642
Net fixed assets								65,404			61,355
Net intangible and other assets								174,857			149,004
Total assets								275,847			255,665
Long term debt (including current portion of $0 and $72, respectively)								121,161			120,793
Stockholders’ equity								115,912			102,439

Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three Months Ended
September 30, 2004 and 2003
(amounts in 000’s except per share data)
(Unaudited)

	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
	September 30,				September 30,				September 30,
Consolidated	2004		2003		2004		2003		2004		2003
Net operating revenue	$	34,262	$	30,433	$	32,483	$	30,433	$	34,262	$	32,192
Station operating expense		24,006		20,470		22,417		20,470		24,005		22,109
Corporate general and administrative		1,927		1,844		1,927		1,844		1,927		1,844
Operating income		8,329		8,119		8,139		8,119		8,330		8,239
Interest expense		1,036		1,081						1,036		1,154
Other (income) expense, net		210		1,215						210		1,215
Income tax expense		2,765		2,356						2,765		2,370
Net income	$	4,318	$	3,467					$	4,319	$	3,500
Earnings per share:
Basic	$	0.21	$	0.17					$	0.21	$	0.17
Diluted	$	0.20	$	0.16					$	0.20	$	0.16

	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
	September 30,				September 30,				September 30,
Radio Segment	2004		2003		2004		2003		2004		2003
Net operating revenue	$	30,616	$	27,370	$	28,837	$	27,370	$	30,616	$	29,129
Station operating expense		20,781		17,796		19,192		17,796		20,780		18,083
Operating income	$	9,835	$	9,574	$	9,645	$	9,574	$	9,836	$	11,046

	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
	September 30,				September 30,				September 30,
Television Segment	2004		2003		2004		2003		2004		2003
Net operating revenue	$	3,646	$	3,063	$	3,646	$	3,063	$	3,646	$	3,063
Station operating expense		3,225		2,674		3,225		2,674		3,225		2,674
Operating income	$	421	$	389	$	421	$	389	$	421	$	389

	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
Depreciation and amortization	September 30,				September 30,				September 30,
by segment	2004		2003		2004		2003		2004		2003
Radio Segment		1,361		1,279		1,197		1,279		1,360		1,352
Television Segment		422		353		422		353		422		353
Corporate and Other		49		50		49		50		49		50
	$	1,832	$	1,682	$	1,668	$	1,682	$	1,831	$	1,755

(1) Pro Forma results assume all acquisitions and dispositions in 2003 and 2004 occurred as of January 1, 2003.

Saga Communications, Inc.
Selected Supplemental Financial Data
For the Nine Months Ended
September 30, 2004 and 2003
(amounts in 000’s except per share data)
(Unaudited)

	As-Reported				Same Station				Pro Forma (1)
	Nine Months Ended				Nine Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,
Consolidated	2004		2003		2004		2003		2004		2003
Net operating revenue	$	98,562	$	88,364	$	93,696	$	88,324	$	99,417	$	94,051
Station operating expense		69,924		63,281		65,595		63,188		70,678		68,283
Corporate general and administrative		5,938		5,084		5,938		5,084		5,938		5,084
Operating income		22,700		19,999	$	22,163	$	20,052		22,801		20,684
Interest expense		3,216		3,773						3,216		3,990
Other (income) expense, net		283		850						283		850
Income tax expense		7,491		6,031						7,536		6,221
Net income	$	11,710	$	9,345					$	11,766	$	9,623
Earnings per share:
Basic	$	0.56	$	0.45					$	0.57	$	0.46
Diluted	$	0.55	$	0.44					$	0.55	$	0.45

	As-Reported				Same Station				Pro Forma (1)
	Nine Months Ended				Nine Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,
Radio Segment	2004		2003		2004		2003		2004		2003
Net operating revenue	$	87,997	$	79,570	$	83,866	$	79,530	$	88,852	$	85,257
Station operating expense		60,399		55,120		56,227		55,027		61,153		60,122
Operating income	$	27,598	$	24,450	$	27,639	$	24,503	$	27,699	$	25,135

	As-Reported				Same Station				Pro Forma (1)
	Nine Months Ended				Nine Months Ended				Nine Months Ended
	September 30,				September 30,				September 30,
Television Segment	2004		2003		2004		2003		2004		2003
Net operating revenue	$	10,565	$	8,794	$	9,830	$	8,794	$	10,565	$	8,794
Station operating expense		9,525		8,161		9,368		8,161		9,525		8,161
Operating income	$	1,040	$	633	$	462	$	633	$	1,040	$	633

	As-Reported				Same Station				Pro Forma (1)
	Nine Months Ended				Nine Months Ended				Nine Months Ended
Depreciation and amortization	September 30,				September 30,				September 30,
by segment	2004		2003		2004		2003		2004		2003
Radio Segment		3,913		3,997		3,574		3,997		4,042		4,315
Television Segment		1,263		1,136		1,208		1,136		1,263		1,136
Corporate and Other		148		149		148		149		148		149
	$	5,324	$	5,282	$	4,930	$	5,282	$	5,453	$	5,600

(1) Pro Forma results assume all acquisitions and dispositions in 2003 and 2004 occurred as of January 1, 2003.

Saga Communications, Inc.
Selected Supplemental Financial Data
Quarterly Proforma Information
September 30, 2004 and 2003
(amounts in 000’s except per share data)
(Unaudited)

	Pro Forma (1)					Pro Forma (1)					Pro Forma (1)				Pro Forma (1)
	Three Months Ended					Three Months Ended					Three Months Ended				Three Months Ended
	March 31,					June 30,					September 30,				December 31,
Consolidated	2004		2003			2004		2003			2004		2003		2004	2003
Net operating revenue	$	29,954	$	27,811		$	35,201	$	34,048		$	34,262	$	32,192		$	34,218
Station operating expense		22,802		22,295			23,871		23,879			24,005		22,109			23,954
Corporate general and administrative		1,732		1,295			2,279		1,945			1,927		1,844			1,565
Operating income		5,420		4,221			9,051		8,224			8,330		8,239			8,699
Interest expense		1,095		1,607			1,085		1,229			1,036		1,154			1,006
Other (income) expense, net		8		(8	)		65		(357	)		210		1,215			281
Income tax expense		1,691		1,044			3,080		2,807			2,765		2,370			2,787
Net income	$	2,626	$	1,578		$	4,821	$	4,545		$	4,319	$	3,500		$	4,625
Earnings per share:
Basic	$	0.13	$	0.08		$	0.23	$	0.22		$	0.21	$	0.17		$	0.22
Diluted	$	0.12	$	0.07		$	0.23	$	0.21		$	0.20	$	0.16		$	0.22

	Pro Forma (1)				Pro Forma (1)				Pro Forma (1)				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended				Three Months Ended
	March 31,				June 30,				September 30,				December 31,
Radio Segment	2004		2003		2004		2003		2004		2003		2004	2003
Net operating revenue	$	26,800	$	25,195	$	31,436	$	30,933	$	30,616	$	29,129		$	30,780
Station operating expense		19,766		19,619		20,607		21,068		20,780		19,435			20,946
Operating income	$	7,034	$	5,576	$	10,829	$	9,865	$	9,836	$	9,694		$	9,834

	Pro Forma (1)					Pro Forma (1)				Pro Forma (1)				Pro Forma (1)
	Three Months Ended					Three Months Ended				Three Months Ended				Three Months Ended
	March 31,					June 30,				September 30,				December 31,
Television Segment	2004		2003			2004		2003		2004		2003		2004	2003
Net operating revenue	$	3,154	$	2,616		$	3,765	$	3,115	$	3,646	$	3,063		$	3,438
Station operating expense		3,036		2,676			3,264		2,811		3,225		2,674			3,008
Operating income (loss)	$	118	$	(60	)	$	501	$	304	$	421	$	389		$	430

	Pro Forma (1)				Pro Forma (1)				Pro Forma (1)				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended				Three Months Ended
Depreciation and amortization	March 31,				June 30,				September 30,				December 31,
by segment	2004		2003		2004		2003		2004		2003		2004	2003
Radio Segment	$	1,325	$	1,488	$	1,357	$	1,475	$	1,360	$	1,352		$	1,257
Television Segment		415		392		426		391		422		353			438
Corporate and Other		49		50		50		49		49		50			50
	$	1,789	$	1,930	$	1,833	$	1,915	$	1,831	$	1,755		$	1,745

(1) Pro Forma results assume all acquisitions and dispositions in 2003 and 2004 occurred as of January 1, 2003.

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
September 30, 2004 and 2003
(Unaudited)

Reconciliation of As Reported (historical) information to Same Station Operating Income

			Adjustment							Adjustment
	As-Reported		For Acquisitions			Same Station		As-Reported		For Acquisitions		Same Station
	Three Months		and Dispositions			Three Months		Three Months		and Dispositions		Three Months
	Ended		Not Included in			Ended		Ended		Not Included in		Ended
	September 30,		Entire Comparable			September 30,		September 30,		Entire Comparable		September 30,
Consolidated	2004		Period			2004		2003		Period		2003
Net operating revenue	$	34,262	$	(1,779	)	$	32,483	$	30,433	$	0	$	30,433
Station operating expense		24,006		(1,589	)		22,417		20,470		0		20,470
Corporate general and administrative		1,927		—			1,927		1,844		—		1,844
Operating income	$	8,329	$	(190	)	$	8,139	$	8,119	$	0	$	8,119

			Adjustment							Adjustment
	As-Reported		For Acquisitions			Same Station		As-Reported		For Acquisitions		Same Station
	Three Months		and Dispositions			Three Months		Three Months		and Dispositions		Three Months
	Ended		Not Included in			Ended		Ended		Not Included in		Ended
	September 30,		Entire Comparable			September 30,		September 30,		Entire Comparable		September 30,
Radio Segment	2004		Period			2004		2003		Period		2003
Net operating revenue	$	30,616	$	(1,779	)	$	28,837	$	27,370	$	0	$	27,370
Station operating expense		20,781		(1,589	)		19,192		17,796		0		17,796
Operating income	$	9,835	$	(190	)	$	9,645	$	9,574	$	0	$	9,574

			Adjustment						Adjustment
	As-Reported		For Acquisitions		Same Station		As-Reported		For Acquisitions		Same Station
	Three Months		and Dispositions		Three Months		Three Months		and Dispositions		Three Months
	Ended		Not Included in		Ended		Ended		Not Included in		Ended
	September 30,		Entire Comparable		September 30,		September 30,		Entire Comparable		September 30,
Television Segment	2004		Period		2004		2003		Period		2003
Net operating revenue	$	3,646	$	0	$	3,646	$	3,063	$	0	$	3,063
Station operating expense		3,225		0		3,225		2,674		0		2,674
Operating income	$	421	$	0	$	421	$	389	$	0	$	389

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Nine Months Ended
September 30, 2004 and 2003
(Unaudited)

Reconciliation of As Reported (historical) information to Same Station Operating Income

			Adjustment							Adjustment
	As-Reported		For Acquisitions			Same Station		As-Reported		For Acquisitions			Same Station
	Nine Months		and Dispositions			Nine Months		Nine Months		and Dispositions			Nine Months
	Ended		Not Included in			Ended		Ended		Not Included in			Ended
	September 30,		Entire Comparable			September 30,		September 30,		Entire Comparable			September 30,
Consolidated	2004		Period			2004		2003		Period			2003
Net operating revenue	$	98,562	$	(4,866	)	$	93,696	$	88,364	$	(40	)	$	88,324
Station operating expense		69,924		(4,329	)		65,595		63,281		(93	)		63,188
Corporate general and administrative		5,938		—			5,938		5,084		—			5,084
Operating income	$	22,700	$	(537	)	$	22,163	$	19,999	$	53		$	20,052

			Adjustment							Adjustment
	As-Reported		For Acquisitions			Same Station		As-Reported		For Acquisitions			Same Station
	Nine Months		and Dispositions			Nine Months		Nine Months		and Dispositions			Nine Months
	Ended		Not Included in			Ended		Ended		Not Included in			Ended
	September 30,		Entire Comparable			September 30,		September 30,		Entire Comparable			September 30,
Radio Segment	2004		Period			2004		2003		Period			2003
Net operating revenue	$	87,997	$	(4,131	)	$	83,866	$	79,570	$	(40	)	$	79,530
Station operating expense		60,399		(4,172	)		56,227		55,120		(93	)		55,027
Operating income	$	27,598	$	41		$	27,639	$	24,450	$	53		$	24,503

			Adjustment							Adjustment
	As-Reported		For Acquisitions			Same Station		As-Reported		For Acquisitions		Same Station
	Nine Months		and Dispositions			Nine Months		Nine Months		and Dispositions		Nine Months
	Ended		Not Included in			Ended		Ended		Not Included in		Ended
	September 30,		Entire Comparable			September 30,		September 30,		Entire Comparable		September 30,
Television Segment	2004		Period			2004		2003		Period		2003
Net operating revenue	$	10,565	$	(735	)	$	9,830	$	8,794	$	0	$	8,794
Station operating expense		9,525		(157	)		9,368		8,161		0		8,161
Operating income	$	1,040	$	(578	)	$	462	$	633	$	0	$	633