Saga Communications (SGA) 8-K Saga Communications, Inc. Reports 2nd Quarter 2007 Results

Exhibit 99.1

Saga Communications, Inc.
Reports 2nd Quarter 2007 Results

Contact:
Samuel D. Bush
313/886-7070

Grosse Pointe Farms, MI — August 9, 2007 — Saga Communications, Inc. (NYSE-SGA) today reported that 2^nd quarter 2007 net operating revenue increased 1.8% over the comparable period in 2006 to $38.4 million and operating income was approximately flat at $8.8 million. Net income decreased $178 thousand to $3.8 million ($.19 per fully diluted share) for the quarter ended June 30, 2007 compared to $4.0 million ($.19 per fully diluted share) for the comparable period in 2006. Free Cash Flow increased $878 thousand to $5.6 million. For the same period, station operating expense increased $647 thousand to $27.0 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the quarter, net operating revenue increased 1.5% to $38.3 million, operating income was approximately flat at $8.8 million and station operating expense increased $486 thousand to $26.9 million.

For the six month period ended June 30, 2007, net operating revenue increased 2.0% over the comparable period in 2006 to $70.3 million, operating income decreased $1.0 million to $12.4 million and net income decreased $963 thousand to $4.6 million ($.23 per fully diluted share) compared to $5.5 million ($.27 per fully diluted share) for the comparable period in 2006. Free Cash Flow decreased $135 thousand. For the same period, station operating expense increased $1.9 million to approximately $53.0 million (station operating expense includes depreciation and amortization attributable to the stations). On a same station basis for the six months, net operating revenue increased 1.7% to $70.1 million, operating income decreased $942 thousand to $12.4 million and station operating expense increased $1.7 million to $52.8 million.

Capital expenditures in the second quarter of 2007 were $2.2 million of which $420 thousand were as a result of acquisitions and $360 thousand were related to digital radio. For the six months capital expenditures were $4.6 million of which $1.3 million were as a result of acquisitions and $520 thousand were related to digital radio. Currently we expect capital expenditures for the year to be approximately $10.5 million.

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 2007 and 2006 acquisitions and dispositions occurred as of January 1, 2006.

Saga Communications utilizes certain financial measures that are not calculated in accordance with generally accepted accounting principles (GAAP) to assess its financial performance. Such non-GAAP measures include same station financial information 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 26 markets, including 59 FM and 30 AM radio stations, 3 state radio networks, 2 farm radio networks, 5 television stations and 4 low-power television stations. As previously disclosed, the Company has entered into agreements to acquire an FM station serving the Asheville, NC radio market and an AM station and a FM station serving the Courtland, NY radio market. The Company also expects to enter into an agreement to acquire an FM radio station serving the Portland, ME radio market. The closing of these transactions are subject to receiving FCC approvals. For additional information, contact us at (313) 886-7070 or visit our website atwww.sagacommunications.com.

Saga’s second quarter 2007 results conference call will be on Thursday, August 9 at 2:00 PM EDT. The dial in number for domestic calls is 800/230-1059. For international callers the number is 612/332-0923. The call can be replayed for 7 days by calling domestically 800/475-6701 or internationally 320/365-3844 and referring to access code 881704. 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 Six Months Ended
June 30, 2007 and 2006
(amounts in 000’s except per share data)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Operating Results
Net operating revenue	$	38,421		$	37,745		$	70,304		$	68,936
Station operating expense		27,016			26,369			53,011			51,072
Corporate general and administrative		2,606			2,499			4,922			4,480
Operating income		8,799			8,877			12,371			13,384
Interest expense		2,281			2,355			4,578			4,632
Other expense (income), net		47			(215	)		82			(570	)
Income before income tax		6,471			6,737			7,711			9,322
Income tax expense		2,661			2,749			3,161			3,809
Net income	$	3,810		$	3,988		$	4,550		$	5,513
Earnings per share
Basic	$	0.19		$	0.19		$	0.23		$	0.27
Diluted	$	0.19		$	0.19		$	0.23		$	0.27
Weighted average common shares		20,083			20,575			20,066			20,528
Weighted average common shares and common shares equivalents		20,113			20,593			20,101			20,547
Free Cash Flow
Net income	$	3,810		$	3,988		$	4,550		$	5,513
Plus: Depreciation and amortization:
Station		1,939			1,950			3,834			3,881
Corporate		51			48			98			96
Deferred tax provision		1,557			1,311			1,827			1,771
Non-cash compensation		329			369			615			599
Other expense (income), net		47			(215	)		82			(570	)
Less: Capital expenditures		(2,149	)		(2,745	)		(4,563	)		(4,712	)
Free cash flow	$	5,584		$	4,706		$	6,443		$	6,578
Balance Sheet Data
Working capital							$	20,886		$	21,755
Net fixed assets								74,308			70,337
Net intangible assets and other assets								213,427			208,203
Total assets								325,668			316,783
Long term debt (including current portion of $0 and $0, respectively)								129,911			136,911
Stockholders’ equity								141,761			131,210

Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three Months Ended
June 30, 2007 and 2006
(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
	June 30,					June 30,				June 30,
	2007		2006			2007		2006		2007		2006
Consolidated
Net operating revenue	$	38,421	$	37,745		$	38,300	$	37,745	$	38,421	$	37,745
Station operating expense		27,016		26,369			26,855		26,369		27,016		26,369
Corporate general and administrative		2,606		2,499			2,606		2,499		2,606		2,499
Operating income		8,799		8,877		$	8,839	$	8,877		8,799		8,877
Interest expense		2,281		2,355							2,281		2,355
Other expense (income), net		47		(215	)						47		(215	)
Income tax expense		2,661		2,749							2,661		2,749
Net income	$	3,810	$	3,988						$	3,810	$	3,988
Earnings per share:
Basic	$	0.19	$	0.19						$	0.19	$	0.19
Diluted	$	0.19	$	0.19						$	0.19	$	0.19

	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
	June 30,				June 30,				June 30,
	2007		2006		2007		2006		2007		2006
Radio Segment
Net operating revenue	$	33,843	$	33,418	$	33,722	$	33,418	$	33,843	$	33,418
Station operating expense		23,455		22,960		23,294		22,960		23,455		22,960
Operating income	$	10,388	$	10,458	$	10,428	$	10,458	$	10,388	$	10,458

	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
	June 30,				June 30,				June 30,
	2007		2006		2007		2006		2007		2006
Television Segment
Net operating revenue	$	4,578	$	4,327	$	4,578	$	4,327	$	4,578	$	4,327
Station operating expense		3,561		3,409		3,561		3,409		3,561		3,409
Operating income	$	1,017	$	918	$	1,017	$	918	$	1,017	$	918

	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
	June 30,				June 30,				June 30,
	2007		2006		2007		2006		2007		2006
Depreciation and amortization by segment
Radio Segment	$	1,539	$	1,536	$	1,506	$	1,536	$	1,539	$	1,536
Television Segment		400		414		400		414		400		414
Corporate and Other		51		48		51		48		51		48
	$	1,990	$	1,998	$	1,957	$	1,998	$	1,990	$	1,998

(1) Pro Forma results assume all acquisitions and dispositions in 2006 and 2007 occurred as of January 1, 2006.

Saga Communications, Inc.
Selected Supplemental Financial Data
For the Six Months Ended
June 30, 2007 and 2006
(amounts in 000’s except per share data)
(Unaudited)

	As-Reported					Same Station				Pro Forma (1)
	Six Months Ended					Six Months Ended				Six Months Ended
	June 30,					June 30,				June 30,
	2007		2006			2007		2006		2007		2006
Consolidated
Net operating revenue	$	70,304	$	68,936		$	70,114	$	68,936	$	70,304	$	68,936
Station operating expense		53,011		51,072			52,750		51,072		53,011		51,072
Corporate general and administrative		4,922		4,480			4,922		4,480		4,922		4,480
Operating income		12,371		13,384		$	12,442	$	13,384		12,371		13,384
Interest expense		4,578		4,632							4,578		4,632
Other expense (income), net		82		(570	)						82		(570	)
Income tax expense		3,161		3,809							3,161		3,809
Net income	$	4,550	$	5,513						$	4,550	$	5,513
Earnings per share:
Basic	$	0.23	$	0.27						$	0.23	$	0.27
Diluted	$	0.23	$	0.27						$	0.23	$	0.27

	As-Reported				Same Station				Pro Forma (1)
	Six Months Ended				Six Months Ended				Six Months Ended
	June 30,				June 30,				June 30,
	2007		2006		2007		2006		2007		2006
Radio Segment
Net operating revenue	$	61,736	$	60,698	$	61,546	$	60,698	$	61,736	$	60,698
Station operating expense		45,968		44,375		45,707		44,375		45,968		44,375
Operating income	$	15,768	$	16,323	$	15,839	$	16,323	$	15,768	$	16,323

	As-Reported				Same Station				Pro Forma (1)
	Six Months Ended				Six Months Ended				Six Months Ended
	June 30,				June 30,				June 30,
	2007		2006		2007		2006		2007		2006
Television Segment
Net operating revenue	$	8,568	$	8,238	$	8,568	$	8,238	$	8,568	$	8,238
Station operating expense		7,043		6,697		7,043		6,697		7,043		6,697
Operating income	$	1,525	$	1,541	$	1,525	$	1,541	$	1,525	$	1,541

	As-Reported				Same Station				Pro Forma (1)
	Six Months Ended				Six Months Ended				Six Months Ended
	June 30,				June 30,				June 30,
	2007		2006		2007		2006		2007		2006
Depreciation and amortization by segment
Radio Segment	$	3,045	$	3,075	$	2,980	$	3,075	$	3,045	$	3,075
Television Segment		789		806		789		806		789		806
Corporate and Other		98		96		98		96		98		96
	$	3,932	$	3,977	$	3,867	$	3,977	$	3,932	$	3,977

(1) Pro Forma results assume all acquisitions and dispositions in 2006 and 2007 occurred as of January 1, 2006.

Saga Communications, Inc.
Selected Supplemental Financial Data
Quarterly Proforma Information
June 30, 2007 and 2006
(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,
	2007		2006			2007		2006			2006			2006
Consolidated
Net operating revenue	$	31,883	$	31,191		$	38,421	$	37,745		$	35,791		$	38,219
Station operating expense		25,995		24,703			27,016		26,369			25,761			27,563
Corporate general and administrative		2,316		1,981			2,606		2,499			2,225			2,165
Other operating income		—		—			—		—			—			(312	)
Operating income		3,572		4,507			8,799		8,877			7,805			8,803
Interest expense		2,297		2,277			2,281		2,355			2,375			2,372
Other expense (income), net		35		(355	)		47		(215	)		(75	)		145
Income tax expense		500		1,060			2,661		2,749			2,241			2,615
Net income	$	740	$	1,525		$	3,810	$	3,988		$	3,264		$	3,671
Earnings per share:
Basic	$	0.04	$	0.07		$	0.19	$	0.19		$	0.16		$	0.18
Diluted	$	0.04	$	0.07		$	0.19	$	0.19		$	0.16		$	0.18

	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,
	2007		2006		2007		2006		2006		2006
Radio Segment
Net operating revenue	$	27,893	$	27,280	$	33,843	$	33,418	$	31,402	$	33,174
Station operating expense		22,513		21,415		23,455		22,960		22,300		23,952
Other operating income		—		—		—		—		—		(312	)
Operating income	$	5,380	$	5,865	$	10,388	$	10,458	$	9,102	$	9,534

	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,
	2007		2006		2007		2006		2006		2006
Television Segment
Net operating revenue	$	3,990	$	3,911	$	4,578	$	4,327	$	4,389	$	5,045
Station operating expense		3,482		3,288		3,561		3,409		3,461		3,611
Operating income	$	508	$	623	$	1,017	$	918	$	928	$	1,434

	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,
	2007		2006		2007		2006		2006		2006
Depreciation and amortization by segment
Radio Segment	$	1,506	$	1,539	$	1,539	$	1,536	$	1,494	$	1,719
Television Segment		389		392		400		414		409		458
Corporate and Other		47		48		51		48		48		50
	$	1,942	$	1,979	$	1,990	$	1,998	$	1,951	$	2,227

(1) Pro Forma results assume all acquisitions and dispositions in 2006 and 2007 occurred as of January 1, 2006.

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
June 30, 2007 and 2006
(amounts in 000’s)
(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
	June 30,		Entire Comparable			June 30,		June 30,		Entire Comparable		June 30,
	2007		Period			2007		2006		Period		2006
Consolidated
Net operating revenue	$	38,421	$	(121	)	$	38,300	$	37,745		—	$	37,745
Station operating expense		27,016		(161	)		26,855		26,369		—		26,369
Corporate general and administrative		2,606		—			2,606		2,499		—		2,499
Operating income	$	8,799	$	40		$	8,839	$	8,877		—	$	8,877

			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
	June 30,		Entire Comparable			June 30,		June 30,		Entire Comparable		June 30,
	2007		Period			2007		2006		Period		2006
Radio Segment
Net operating revenue	$	33,843	$	(121	)	$	33,722	$	33,418		—	$	33,418
Station operating expense		23,455		(161	)		23,294		22,960		—		22,960
Operating income	$	10,388	$	40		$	10,428	$	10,458		—	$	10,458

			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
	June 30,		Entire Comparable		June 30,		June 30,		Entire Comparable		June 30,
	2007		Period		2007		2006		Period		2006
Television Segment
Net operating revenue	$	4,578		—	$	4,578	$	4,327		—	$	4,327
Station operating expense		3,561		—		3,561		3,409		—		3,409
Operating income	$	1,017		—	$	1,017	$	918		—	$	918

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Six Months Ended
June 30, 2007 and 2006
(amounts in 000’s)
(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
	Six Months		and Dispositions			Six Months		Six Months		and Dispositions		Six Months
	Ended		Not Included in			Ended		Ended		Not Included in		Ended
	June 30,		Entire Comparable			June 30,		June 30,		Entire Comparable		June 30,
	2007		Period			2007		2006		Period		2006
Consolidated
Net operating revenue	$	70,304	$	(190	)	$	70,114	$	68,936		—	$	68,936
Station operating expense		53,011		(261	)		52,750		51,072		—		51,072
Corporate general and administrative		4,922		—			4,922		4,480		—		4,480
Operating income	$	12,371	$	71		$	12,442	$	13,384		—	$	13,384

			Adjustment							Adjustment
	As-Reported		For Acquisitions			Same Station		As-Reported		For Acquisitions		Same Station
	Six Months		and Dispositions			Six Months		Six Months		and Dispositions		Six Months
	Ended		Not Included in			Ended		Ended		Not Included in		Ended
	June 30,		Entire Comparable			June 30,		June 30,		Entire Comparable		June 30,
	2007		Period			2007		2006		Period		2006
Radio Segment
Net operating revenue	$	61,736	$	(190	)	$	61,546	$	60,698		—	$	60,698
Station operating expense		45,968		(261	)		45,707		44,375		—		44,375
Operating income	$	15,768	$	71		$	15,839	$	16,323		—	$	16,323

			Adjustment						Adjustment
	As-Reported		For Acquisitions		Same Station		As-Reported		For Acquisitions		Same Station
	Six Months		and Dispositions		Six Months		Six Months		and Dispositions		Six Months
	Ended		Not Included in		Ended		Ended		Not Included in		Ended
	June 30,		Entire Comparable		June 30,		June 30,		Entire Comparable		June 30,
	2007		Period		2007		2006		Period		2006
Television Segment
Net operating revenue	$	8,568		—	$	8,568	$	8,238		—	$	8,238
Station operating expense		7,043		—		7,043		6,697		—		6,697
Operating income	$	1,525		—	$	1,525	$	1,541		—	$	1,541