Saga Communications (SGA) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Saga Communications, Inc.
Reports Preliminary 4^th Quarter and Year End 2008 Results
and Intent to File Notification of Late Filing for Form 10-K

Contact:
Samuel D. Bush
313/886-7070

Grosse Pointe Farms, MI – March 10, 2009 – Saga Communications, Inc. (NYSE Alternext US-SGA) today reported free cash flow increased 17.3% to $18.9 million for the year. Net operating revenue for the year ended December 31, 2008 decreased 2.8% over the comparable period in 2007 to $140.0 million. Station operating expense decreased 0.5% to $105.8 million (station operating expense includes depreciation and amortization attributable to the stations) and operating income (excluding non-cash impairment charge) decreased 11.6% to $24.7 million. On a same station basis for the year, net operating revenue decreased 3.5% to $138.6 million, operating income (excluding non-cash impairment charge) decreased 12.6% to $24.3 million and station operating expense decreased 1.2% to $104.8 million.

For the quarter ended December 31, 2008 free cash flow increased 42.0% to $5.9 million for the quarter. Net operating revenue decreased 7.0% from the comparable period in 2007 to $35.0 million. Station operating expense decreased 2.8% to $26.6 million (station operating expense includes depreciation and amortization attributable to the stations) and operating income (excluding non-cash impairment charge) decreased 21.2% to $6.0 million. On a same station basis for the quarter, net operating revenue decreased 7.2% to $34.7 million, operating income (excluding non-cash impairment charge) decreased 21.0% to $6.0 million and station operating expense decreased 3.1% to $26.4 million.

The Company has not finalized the fourth quarter non-cash impairment charge and its related tax impact (which could be significant) and therefore is not releasing net income (loss) or earnings (loss) per basic and diluted share at this time. The Company has also not included the non-cash impairment charge and its related tax impact in the attached unaudited financial information. Based on a combination of factors, including the current economic environment, the Company’s operating results and current market valuation, the Company has concluded that it is likely that the value of certain intangible assets will

be reduced below their current carrying value. The Company is continuing to conduct their required impairment analysis to determine the amount of the non-cash impairment charge. As a result of its ongoing impairment analysis, the Company expects to be filing a Notification of Late Filing in accordance with Rule 12b-25 of the Securities Exchange Act of 1934, as amended, with the Securities and Exchange Commission (the “SEC”) for its Annual Report on Form 10-K for the fiscal year ended December 31, 2008. The Company will file its Annual Report on Form 10-K, which will include the results of finalizing the non-cash impairment charge and its related tax impact, with the SEC on March 31, 2009.

This press release supersedes the Company’s previously announced plans for issuing a press release and holding a conference call on March 11, 2009.

Capital expenditures in the fourth quarter of 2008 were $2.0 million. For the 2008 fiscal year total capital expenditures were $7.1 million. This compares to $3.7 million and $9.9 million for the same respective periods last year.

During the year ended December 31, 2008, the Company bought back 899,601 shares of stock for a total purchase price of $19.2 million. For the three month period ended December 31, 2008 the Company bought back 378,412 shares for a total purchase price of $7.4 million. The share repurchase numbers have been adjusted for the Company’s January 29, 2009 1 for 4 reverse stock split.

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 2008 and 2007 acquisitions and dispositions occurred as of January 1, 2007.

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 61 FM and 30 AM radio stations, 3 state radio networks, 2 farm radio networks, 5 television stations and 4 low-power television stations. For additional information, contact us at (313) 886-7070 or visit our website at www.sagacommunications.com.

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, including Item 1A of our annual report on form 10-K. 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 Twelve Months Ended
December 31, 2008 and 2007
(amounts in 000’s except per share data)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2008			2007			2008			2007
Operating Results
Net operating revenue	$	34,890		$	37,501		$	139,956		$	144,023
Station operating expense		26,550			27,316			105,805			106,302
Corporate general and administrative		2,368			2,606			9,979			9,800
Gain on asset exchange		—			—			(506	)		—
Operating income before impairment charge		5,972			7,579			24,678			27,921
Interest expense		1,413			2,093			7,173			8,954
Other expense, net		49			131			76			273
Income before income tax and impairment charge	$	4,510		$	5,355		$	17,429		$	18,694
Weighted average common shares		4,249			5,030			4,734			5,023
Weighted average common shares and common shares equivalents		4,249			5,033			4,734			5,029
Free Cash Flow
Income before income tax and impairment charge	$	4,510		$	5,355		$	17,429		$	18,694
Plus: Depreciation and amortization:
Station		2,348			2,135			8,739			7,982
Corporate		62			58			222			204
Non-cash compensation		374			375			1,433			1,366
Gain on asset exchange		—			—			(506	)		—
Other expense, net		49			131			76			273
Less: Capital expenditures		(1,993	)		(3,672	)		(7,127	)		(9,852	)
Current taxes		529			(239	)		(1,357	)		(2,546	)
Free cash flow	$	5,879		$	4,143		$	18,909		$	16,121

Saga Communications, Inc.
Selected Supplemental Financial Data
For the Three Months Ended
December 31, 2008 and 2007
(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
	December 31,				December 31,				December 31,
	2008		2007		2008		2007		2008		2007
Consolidated
Net operating revenue	$	34,890	$	37,501	$	34,746	$	37,429	$	34,890	$	37,537
Station operating expense		26,550		27,316		26,388		27,244		26,550		27,352
Corporate general and administrative		2,368		2,606		2,368		2,606		2,368		2,606
Operating income before impairment charge		5,972		7,579	$	5,990	$	7,579		5,972		7,579
Interest expense		1,413		2,093						1,413		2,093
Other expense, net		49		131						49		131
Income before income tax and impairment charge	$	4,510	$	5,355					$	4,510	$	5,355
	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
	December 31,				December 31,				December 31,
	2008		2007		2008		2007		2008		2007
Radio Segment
Net operating revenue	$	29,756	$	32,956	$	29,612	$	32,884	$	29,756	$	32,992
Station operating expense		22,513		23,702		22,351		23,630		22,513		23,738
Operating income before impairment charge	$	7,243	$	9,254	$	7,261	$	9,254	$	7,243	$	9,254
	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
	December 31,				December 31,				December 31,
	2008		2007		2008		2007		2008		2007
Television Segment
Net operating revenue	$	5,134	$	4,545	$	5,134	$	4,545	$	5,134	$	4,545
Station operating expense		4,037		3,614		4,037		3,614		4,037		3,614
Operating income before impairment charge	$	1,097	$	931	$	1,097	$	931	$	1,097	$	931
	As-Reported				Same Station				Pro Forma (1)
	Three Months Ended				Three Months Ended				Three Months Ended
	December 31,				December 31,				December 31,
	2008		2007		2008		2007		2008		2007
Depreciation and amortization by segment
Radio Segment	$	1,676	$	1,710	$	1,676	$	1,685	$	1,676	$	1,723
Television Segment		672		425		672		425		672		425
Corporate and Other		62		58		62		58		62		58
	$	2,410	$	2,193	$	2,410	$	2,168	$	2,410	$	2,206

(1) Pro Forma results assume all acquisitions and dispositions in 2007 and 2008 occurred as of January 1, 2007.

Saga Communications, Inc.
Selected Supplemental Financial Data
For the Twelve Months Ended
December 31, 2008 and 2007
(amounts in 000’s except per share data)
(Unaudited)

	As-Reported					Same Station					Pro Forma (1)
	Twelve Months Ended					Twelve Months Ended					Twelve Months Ended
	December 31,					December 31,					December 31,
	2008			2007		2008			2007		2008			2007
Consolidated
Net operating revenue	$	139,956		$	144,023	$	138,601		$	143,684	$	139,956		$	144,982
Station operating expense		105,805			106,302		104,782			106,039		105,805			107,159
Corporate general and administrative		9,979			9,800		9,979			9,800		9,979			9,800
Gain on asset exchange		(506	)		—		(506	)		—		(506	)		—
Operating income before impairment charge		24,678			27,921	$	24,346		$	27,845		24,678			28,023
Interest expense		7,173			8,954							7,173			8,954
Other expense, net		76			273							76			273
Income before income tax and impairment charge	$	17,429		$	18,694						$	17,429		$	18,796
	As-Reported					Same Station					Pro Forma (1)
	Twelve Months Ended					Twelve Months Ended					Twelve Months Ended
	December 31,					December 31,					December 31,
	2008			2007		2008			2007		2008			2007
Radio Segment
Net operating revenue	$	121,072		$	126,596	$	119,717		$	126,257	$	121,072		$	127,555
Station operating expense		90,540			92,162		89,517			91,899		90,540			93,019
Operating income before impairment charge	$	30,532		$	34,434	$	30,200		$	34,358	$	30,532		$	34,536
	As-Reported					Same Station					Pro Forma (1)
	Twelve Months Ended					Twelve Months Ended					Twelve Months Ended
	December 31,					December 31,					December 31,
	2008			2007		2008			2007		2008			2007
Television Segment
Net operating revenue	$	18,884		$	17,427	$	18,884		$	17,427	$	18,884		$	17,427
Station operating expense		15,265			14,140		15,265			14,140		15,265			14,140
Gain on asset exchange		(506	)		—		(506	)		—		(506	)		—
Operating income before impairment charge	$	4,125		$	3,287	$	4,125		$	3,287	$	4,125		$	3,287
	As-Reported					Same Station					Pro Forma (1)
	Twelve Months Ended					Twelve Months Ended					Twelve Months Ended
	December 31,					December 31,					December 31,
	2008			2007		2008			2007		2008			2007
Depreciation and amortization by segment
Radio Segment	$	6,446		$	6,363	$	6,372		$	6,299	$	6,446		$	6,548
Television Segment		2,293			1,619		2,293			1,619		2,293			1,619
Corporate and Other		222			204		222			204		222			204
	$	8,961		$	8,186	$	8,887		$	8,122	$	8,961		$	8,371

(1) Pro Forma results assume all acquisitions and dispositions in 2007 and 2008 occurred as of January 1, 2007.

Saga Communications, Inc.
Selected Supplemental Financial Data
Quarterly Proforma Information
December 31, 2008 and 2007
(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,
	2008		2007		2008			2007		2008			2007		2008		2007
Consolidated
Net operating revenue	$	31,532	$	32,193	$	37,342		$	38,752	$	36,192		$	36,500	$	34,890	$	37,537
Station operating expense		25,421		26,284		27,246			27,284		26,588			26,239		26,550		27,352
Corporate general and administrative		2,552		2,316		2,574			2,606		2,485			2,272		2,368		2,606
Gain on asset exchange		—		—		(224	)		—		(282	)		—		—		—
Operating income before impairment charge		3,559		3,593		7,746			8,862		7,401			7,989		5,972		7,579
Interest expense		1,995		2,297		1,876			2,281		1,889			2,283		1,413		2,093
Other expense, net		20		35		7			47		—			60		49		131
Income before income tax and impairment charge	$	1,544	$	1,261	$	5,863		$	6,534	$	5,512		$	5,646	$	4,510	$	5,355
	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,
	2008		2007		2008			2007		2008			2007		2008		2007
Radio Segment
Net operating revenue	$	27,381	$	28,203	$	32,629		$	34,174	$	31,306		$	32,186	$	29,756	$	32,992
Station operating expense		21,913		22,802		23,398			23,723		22,717			22,756		22,513		23,738
Operating income before impairment charge	$	5,468	$	5,401	$	9,231		$	10,451	$	8,589		$	9,430	$	7,243	$	9,254
	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,
	2008		2007		2008			2007		2008			2007		2008		2007
Television Segment
Net operating revenue	$	4,151	$	3,990	$	4,713		$	4,578	$	4,886		$	4,314	$	5,134	$	4,545
Station operating expense		3,508		3,482		3,848			3,561		3,871			3,483		4,037		3,614
Gain on asset exchange		—		—		(224	)		—		(282	)		—		—		—
Operating income before impairment charge	$	643	$	508	$	1,089		$	1,017	$	1,297		$	831	$	1,097	$	931
	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,
	2008		2007		2008			2007		2008			2007		2008		2007
Depreciation and amortization by segment
Radio Segment	$	1,562	$	1,566	$	1,591		$	1,599	$	1,618		$	1,660	$	1,676	$	1,723
Television Segment		395		389		605			400		620			405		672		425
Corporate and Other		53		47		53			51		54			48		62		58
	$	2,010	$	2,002	$	2,249		$	2,050	$	2,292		$	2,113	$	2,410	$	2,206

(1) Pro Forma results assume all acquisitions and dispositions in 2007 and 2008 occurred as of January 1, 2007.

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Three Months Ended
December 31, 2008 and 2007
(amounts in 000’s)
(Unaudited)

Reconciliation of As-Reported (historical) information to Same Station Operating Income Before Impairment Charge

			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
	December 31,		Entire Comparable			December 31,		December 31,		Entire Comparable			December 31,
	2008		Period			2008		2007		Period			2007
Consolidated
Net operating revenue	$	34,890	$	(144	)	$	34,746	$	37,501	$	(72	)	$	37,429
Station operating expense		26,550		(162	)		26,388		27,316		(72	)		27,244
Corporate general and administrative		2,368		—			2,368		2,606		—			2,606
Operating income before impairment charge	$	5,972	$	18		$	5,990	$	7,579		—		$	7,579

			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
	December 31,		Entire Comparable			December 31,		December 31,		Entire Comparable			December 31,
	2008		Period			2008		2007		Period			2007
Radio Segment
Net operating revenue	$	29,756	$	(144	)	$	29,612	$	32,956	$	(72	)	$	32,884
Station operating expense		22,513		(162	)		22,351		23,702		(72	)		23,630
Operating income before impairment charge	$	7,243	$	18		$	7,261	$	9,254		—		$	9,254

			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
	December 31,		Entire Comparable		December 31,		December 31,		Entire Comparable		December 31,
	2008		Period		2008		2007		Period		2007
Television Segment			��
Net operating revenue	$	5,134		—	$	5,134	$	4,545		—	$	4,545
Station operating expense		4,037		—		4,037		3,614		—		3,614
Operating income before impairment charge	$	1,097		—	$	1,097	$	931		—	$	931

Saga Communications, Inc.
Selected Financial Data Non-GAAP Disclosures
For the Twelve Months Ended
December 31, 2008 and 2007
(amounts in 000’s)
(Unaudited)

Reconciliation of As-Reported (historical) information to Same Station Operating Income Before Impairment Charge

				Adjustment								Adjustment
	As-Reported			For Acquisitions			Same Station			As-Reported		For Acquisitions			Same Station
	Twelve Months			and Dispositions			Twelve Months			Twelve Months		and Dispositions			Twelve Months
	Ended			Not Included in			Ended			Ended		Not Included in			Ended
	December 31,			Entire Comparable			December 31,			December 31,		Entire Comparable			December 31,
	2008			Period			2008			2007		Period			2007
Consolidated
Net operating revenue	$	139,956		$	(1,355	)	$	138,601		$	144,023	$	(339	)	$	143,684
Station operating expense		105,805			(1,023	)		104,782			106,302		(263	)		106,039
Corporate general and administrative		9,979			—			9,979			9,800		—			9,800
Gain on asset exchange		(506	)		—			(506	)		—		—			—
Operating income before impairment charge	$	24,678		$	(332	)	$	24,346		$	27,921	$	(76	)	$	27,845

			Adjustment							Adjustment
	As-Reported		For Acquisitions			Same Station		As-Reported		For Acquisitions			Same Station
	Twelve Months		and Dispositions			Twelve Months		Twelve Months		and Dispositions			Twelve Months
	Ended		Not Included in			Ended		Ended		Not Included in			Ended
	December 31,		Entire Comparable			December 31,		December 31,		Entire Comparable			December 31,
	2008		Period			2008		2007		Period			2007
Radio Segment
Net operating revenue	$	121,072	$	(1,355	)	$	119,717	$	126,596	$	(339	)	$	126,257
Station operating expense		90,540		(1,023	)		89,517		92,162		(263	)		91,899
Operating income before impairment charge	$	30,532	$	(332	)	$	30,200	$	34,434	$	(76	)	$	34,358

				Adjustment							Adjustment
	As-Reported			For Acquisitions		Same Station			As-Reported		For Acquisitions		Same Station
	Twelve Months			and Dispositions		Twelve Months			Twelve Months		and Dispositions		Twelve Months
	Ended			Not Included in		Ended			Ended		Not Included in		Ended
	December 31,			Entire Comparable		December 31,			December 31,		Entire Comparable		December 31,
	2008			Period		2008			2007		Period		2007
Television Segment
Net operating revenue	$	18,884			—	$	18,884		$	17,427		—	$	17,427
Station operating expense		15,265			—		15,265			14,140		—		14,140
Gain on asset exchange		(506	)		—		(506	)		—		—		—
Operating income before impairment charge	$	4,125			—	$	4,125		$	3,287		—	$	3,287