<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2001         Commission File No. 0-21084




                            CHAMPION INDUSTRIES, INC.

             (Exact name of Registrant as specified in its charter)


                 West Virginia                                    55-0717455

(State or other jurisdiction of incorporation or               (I.R.S. Employer
                 organization)                               Identification No.)


                               2450-90 1st Avenue
                                  P.O. Box 2968
                              Huntington, WV 25728

                    (Address of principal executive offices)
                                   (Zip Code)


                                 (304) 528-2700

                         (Registrant's telephone number,
                              including area code)



Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes  X   No    .

9,713,913 shares of common stock of the Registrant were outstanding at July 31,
2001.
<PAGE>   2
                            CHAMPION INDUSTRIES, INC.

                                      INDEX

<TABLE>
<CAPTION>
                                                                                PAGE NO.
<S>                                                                             <C>
Part I. Financial Information

       Item 1. Financial Statements

            Consolidated Balance Sheets ..................................          2

            Consolidated Statements of Operations ........................          4

            Consolidated Statements of Cash Flows ........................          5

            Notes to Consolidated Financial Statements ...................          6

       Item 2. Management's Discussion and Analysis of Financial Condition
               and Results of Operations .................................         13



Part II. Other Information

       Item 6. Exhibits and Reports on Form 8-K ..........................         18



Signatures ...............................................................         19
</TABLE>




                                       1
<PAGE>   3
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

<TABLE>
<CAPTION>
ASSETS                                                                          JULY 31,             OCTOBER 31,
                                                                                  2001                  2000
                                                                              ------------          ------------
<S>                                                                           <C>                   <C>
Current assets:
   Cash and cash equivalents                                                  $  4,761,826          $  3,173,587
   Accounts receivable, net of allowance of $1,085,000 and $1,509,000           18,107,240            21,986,924
   Inventories                                                                  12,507,308            13,576,479
   Other current assets                                                          1,042,109             1,009,915
   Deferred income tax assets                                                    1,103,480             1,103,480
   Income tax receivable                                                         1,650,073                    --
                                                                              ------------          ------------
         Total current assets                                                   39,172,036            40,850,385


Property and equipment, at cost:
    Land                                                                           809,220             1,009,220
    Buildings and improvements                                                   5,584,148             6,631,840
    Machinery and equipment                                                     34,025,516            34,832,461
    Equipment under capital leases                                               2,583,407             1,600,000
    Furniture and fixtures                                                       2,347,806             2,278,750
    Vehicles                                                                     3,043,961             2,870,865
                                                                              ------------          ------------
                                                                                48,394,058            49,223,136
            Less accumulated depreciation                                      (26,921,748)          (24,267,533)
                                                                              ------------          ------------
                                                                                21,472,310            24,955,603

Assets held for sale                                                             1,057,216                    --
Cash surrender value of officers' life insurance                                   879,852             1,246,558
Goodwill, net of accumulated amortization                                        1,089,461             3,634,439
Other assets                                                                       792,751               872,214
                                                                              ------------          ------------
                                                                                 3,819,280             5,753,211
                                                                              ------------          ------------
            Total assets                                                      $ 64,463,626          $ 71,559,199
                                                                              ============          ============
</TABLE>




                See notes to consolidated financial statements.



                                       2
<PAGE>   4
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS (CONTINUED)
                                   (Unaudited)

<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY                                  JULY 31,           OCTOBER 31,
                                                                        2001                2000
                                                                     -----------         -----------
<S>                                                                  <C>                 <C>
Current liabilities:
   Accounts payable                                                  $ 3,773,783         $ 3,601,765
   Accrued payroll                                                     1,552,026           2,199,379
   Taxes accrued and withheld                                          1,430,281           1,197,435
   Accrued income taxes                                                       --             224,519
   Accrued expenses                                                    1,314,813           1,005,744
   Current portion of long-term debt:
      Notes payable                                                    3,884,700           3,210,255
      Capital lease obligations                                          539,141             341,661
                                                                     -----------         -----------
            Total current liabilities                                 12,494,744          11,780,758

Long-term debt, net of current portion:

   Notes payable                                                       4,935,417           7,730,531
   Capital lease obligations                                             672,924             339,653
Deferred income tax liability                                          4,173,419           4,173,419
Other liabilities                                                        433,680             809,080
                                                                     -----------         -----------
            Total liabilities                                         22,710,184          24,833,441

Shareholders' equity:
   Common stock, $1 par value, 20,000,000 shares authorized;
      9,713,913 shares issued and outstanding                          9,713,913           9,713,913
   Additional paid-in capital                                         22,242,047          22,242,047
   Retained earnings                                                   9,797,482          14,769,798
                                                                     -----------         -----------
Total shareholders' equity                                            41,753,442          46,725,758
                                                                     -----------         -----------
            Total liabilities and shareholders' equity               $64,463,626         $71,559,199
                                                                     ===========         ===========
</TABLE>




                See notes to consolidated financial statements.




                                       3
<PAGE>   5
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                             THREE MONTHS ENDED                          NINE MONTHS ENDED
                                                                  JULY 31,                                    JULY 31,
                                                         2001                  2000                  2001                  2000
                                                     ------------          ------------          ------------          ------------
<S>                                                 <C>                    <C>                  <C>                    <C>
Revenues:
   Printing                                          $ 23,430,094          $ 23,266,019          $ 72,491,601          $ 71,727,385
   Office products and office furniture                 6,806,446             7,148,779            20,438,265            22,353,743
                                                     ------------          ------------          ------------          ------------
            Total revenues                             30,236,540            30,414,798            92,929,866            94,081,128

Cost of sales:
   Printing                                            17,835,322            16,286,665            53,160,188            51,149,599
   Office products and office furniture                 4,827,742             4,860,728            14,247,969            15,050,762
                                                     ------------          ------------          ------------          ------------
            Total cost of sales                        22,663,064            21,147,393            67,408,157            66,200,361
                                                     ------------          ------------          ------------          ------------
Gross profit                                            7,573,476             9,267,405            25,521,709            27,880,767

Selling, general and administrative expenses            8,342,357             8,244,724            24,266,227            24,471,200
Restructuring and other charges                         2,052,692                    --             2,052,692                    --
Asset impairment charges                                3,060,706                    --             3,060,706                    --
                                                     ------------          ------------          ------------          ------------
Income (loss) from operations                          (5,882,279)            1,022,681            (3,857,916)            3,409,567
Other income (expense):
   Interest income                                          8,208                14,791                54,692                37,516
   Interest expense                                      (183,056)             (287,648)             (683,206)             (770,374)
   Other                                                   32,537                14,677               503,394               100,945
                                                     ------------          ------------          ------------          ------------
                                                         (142,311)             (258,180)             (125,120)             (631,913)
                                                     ------------          ------------          ------------          ------------
Income (loss) before income taxes                      (6,024,590)              764,501            (3,983,036)            2,777,654
   Income tax benefit (expense)                         1,778,188              (312,602)              953,505            (1,134,131)
                                                     ------------          ------------          ------------          ------------
Net income (loss)                                   ($  4,246,402)         $    451,899         ($  3,029,531)         $  1,643,523
                                                     ============          ============          ============          ============


Earnings (loss) per share
   Basic                                            ($       0.44)         $       0.05         ($       0.31)         $       0.17
                                                     ============          ============          ============          ============
   Diluted                                          ($       0.44)         $       0.05         ($       0.31)         $       0.17
                                                     ============          ============          ============          ============


Weighted average shares outstanding:
   Basic                                                9,714,000             9,714,000             9,714,000             9,714,000
                                                     ============          ============          ============          ============
   Diluted                                              9,714,000             9,714,000             9,714,000             9,714,000
                                                     ============          ============          ============          ============


Dividends per share (declared)                       $       0.10          $       0.05          $       0.20          $       0.15
                                                     ============          ============          ============          ============
</TABLE>





                See notes to consolidated financial statements.



                                       4
<PAGE>   6
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                           NINE MONTHS ENDED JULY 31,
                                                           2001                 2000
                                                        -----------          -----------
<S>                                                    <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                      ($ 3,029,531)         $ 1,643,523
Adjustments to reconcile net income to cash
provided by operating activities:
      Depreciation and amortization                       3,360,089            3,145,407
      Gain on sale of assets                                (16,849)                (704)
      Gain on sale of division                             (407,515)                  --
      Increase in deferred comp                              16,531               18,765
      Restructuring and other charges                     3,030,592                   --
      Asset impairment charges                            3,060,706                   --
      Bad debt expense                                      421,451              534,551
      Changes in assets and liabilities:
         Accounts receivable                              3,768,155            4,277,437
         Inventories                                        265,510              427,000
         Other current assets                               (32,194)            (255,691)
         Accounts payable                                (1,202,022)            (826,934)
         Accrued payroll                                   (701,948)              (4,364)
         Taxes accrued and withheld                         232,846              143,643
         Accrued income taxes                            (1,874,592)            (884,195)
         Accrued expenses                                   211,716              (90,724)
         Other liabilities                                  (16,625)             (38,155)
                                                        -----------          -----------
Net cash provided by operating activities                 7,086,320            8,089,559

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment                      (1,072,001)          (1,688,172)
Proceeds from sales of property                             158,062              167,077
Proceeds from sale of division                              264,700                   --
Business acquisitions, net of cash received              (1,169,722)            (463,477)
Decrease in cash surrender value life insurance              (8,600)                  --
Other assets                                                 35,188             (164,565)
                                                        -----------          -----------
Net cash used in investing activities                    (1,792,373)          (2,149,137)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on line of credit                              1,500,000                   --
Payments on line of credit                               (1,500,000)                  --
Proceeds from term debt and leases                        1,192,397              618,720
Principal payments on long-term debt                     (3,441,017)          (3,060,641)
Dividends paid                                           (1,457,088)          (1,457,088)
                                                        -----------          -----------
Net cash used in financing activities                    (3,705,708)          (3,899,009)
                                                        -----------          -----------
Net increase in cash                                      1,588,239            2,041,413
Cash and cash equivalents, beginning of period            3,173,587            2,463,554
                                                        -----------          -----------
Cash and cash equivalents, end of period                $ 4,761,826          $ 4,504,967
                                                        ===========          ===========
</TABLE>




                See notes to consolidated financial statements.



                                       5
<PAGE>   7
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

                                  JULY 31, 2001


1. BASIS OF PRESENTATION AND BUSINESS OPERATIONS

The foregoing financial information has been prepared in accordance with
accounting principles generally accepted in the United States ("GAAP") and rules
and regulations of the Securities and Exchange Commission for interim financial
reporting. The preparation of the financial statements in accordance with GAAP
requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results
could differ from these estimates. In the opinion of management, the financial
information reflects all adjustments (consisting of items of a normal recurring
nature) necessary for a fair presentation of financial position, results of
operations and cash flows in conformity with GAAP. These interim financial
statements should be read in conjunction with the consolidated financial
statements for the year ended October 31, 2000, and related notes thereto
contained in Champion Industries, Inc.'s Form 10-K dated January 26, 2001. The
accompanying interim financial information is unaudited.

The accompanying consolidated financial statements of the Company include the
accounts of The Chapman Printing Company, Inc., Stationers, Inc., Bourque
Printing, Inc., Dallas Printing Company, Inc., Carolina Cut Sheets, Inc., U.S.
Tag & Ticket Company, Inc., Donihe Graphics, Inc., The Merten Company, Smith &
Butterfield Co., Inc., Interform Corporation, Rose City Press, Capitol Business
Equipment, Inc. d.b.a. Capitol Business Interiors, Thompson's of Morgantown,
Inc., Independent Printing Service, Inc. and Diez Business Machines, Inc.


2. EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted
average shares of common stock outstanding for the period and excludes any
dilutive effects of stock options. Diluted earnings per share is computed by
dividing net income by the weighted average shares of common stock outstanding
for the period plus the shares that would be outstanding assuming the exercise
of dilutive stock options. Stock options outstanding for the three and nine
months ended July 31, 2001 and 2000 were anti-dilutive.

3. INVENTORIES

Inventories are principally stated at the lower of first-in, first-out cost or
market. Manufactured finished goods and work in process inventories include
material, direct labor and overhead based on standard costs, which approximate
actual costs. The Company utilizes an estimated gross profit method for
determining cost of sales in interim periods.




                                       6
<PAGE>   8
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)



3. INVENTORIES (CONTINUED)

Inventories consisted of the following:

<TABLE>
<CAPTION>
                                                           JULY 31,          OCTOBER 31,
                                                             2001                2000
                                                         -----------         -----------
<S>                                                      <C>                 <C>
            Printing:
               Raw materials                             $ 2,910,017         $ 3,034,390
               Work in process                             1,957,588           2,041,255
               Finished goods                              3,974,317           4,144,178
            Office products and office furniture           3,665,386           4,356,656
                                                         -----------         -----------
                                                         $12,507,308         $13,576,479
                                                         ===========         ===========
</TABLE>




4. LONG-TERM DEBT

Long-term debt consisted of the following:

<TABLE>
<CAPTION>
                                                       JULY 31,          OCTOBER 31,
                                                         2001                2000
                                                     -----------         -----------
<S>                                                  <C>                 <C>
      Unsecured term note payable                    $ 4,910,888         $ 6,250,000
      Installment notes payable to banks               3,105,567           3,201,659
      Mortgage note payable to a bank                    803,662           1,489,127
      Capital lease obligations                        1,212,065             681,314
                                                     -----------         -----------
                                                      10,032,182          11,622,100
      Less current portion                             4,423,841           3,551,916
                                                     -----------         -----------
      Long-term debt, net of current portion         $ 5,608,341         $ 8,070,184
                                                     ===========         ===========
</TABLE>

The Company has an unsecured revolving line of credit with a bank for borrowings
to a maximum of $10,000,000 with interest payable monthly at interest rates at
LIBOR plus 1% to 1.5%. This line of credit expires in April 2002 and contains
certain restrictive financial covenants. There were no borrowings outstanding
under this facility at July 31, 2001.

The Company has an unsecured revolving line of credit with a bank for borrowings
to a maximum of $1,000,000 with interest payable monthly at the Wall Street
Journal prime rate. The line of credit expires in October 2002 and contains
certain financial covenants. There were no borrowings outstanding under this
facility at July 31, 2001.

The Company's non-cash activities for the nine months ended July 31, 2001 and
2000 included vehicle purchases of approximately $659,000 and $622,000 which
were financed by a bank.


                                       7
<PAGE>   9
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)



5. SHAREHOLDERS' EQUITY

The Company paid a dividend of five cents per share on June 25, 2001 to
stockholders of record on June 8, 2001. Also, on July 31, 2001, the Company
declared a dividend of five cents per share to be paid on September 24, 2001 to
stockholders of record on September 7, 2001.

6. ACQUISITIONS AND DIVESTITURES

On November 6, 2000, the Company acquired certain assets of the Huntington, West
Virginia paper distribution division of The Cincinnati Cordage Paper Company
("Cordage") for $1.2 million, pursuant to an auction held by the U.S. Bankruptcy
Court for the Southern District of Ohio. This transaction was accounted for
under the purchase method of accounting. On April 30, 2001, the company entered
into a strategic alliance with Xpedx resulting in the assumption by Xpedx of the
Cordage customer list and the sale of certain inventory items. This strategic
alliance has been accounted for as a sale of a division with a gain recognized
of approximately $400,000.

On November 30, 1999, the Company acquired all of the issued and outstanding
common stock of Diez Business Machines, Inc. of Gonzales, Louisiana for
$630,000, net of cash received. This transaction was accounted for under the
purchase method of accounting.

Pro forma financial information related to these acquisitions has not been
presented because such information would not be materially different than that
reported herein.

7. NEW ACCOUNTING PRONOUNCEMENTS AND SIGNIFICANT ACCOUNTING POLICY UPDATES

Derivative Instruments and Hedging Activities

As of November 1, 2000, the Company adopted Financial Accounting Standards Board
Statement No.133, Accounting for Derivative Instruments and Hedging Activities,
as amended. The Company does not use derivatives, therefore, the adoption of
this statement has not had an effect on earnings or the financial position of
the Company.

Accounting for Web Site Development Costs

Certain external costs and internal payroll and payroll-related costs have been
capitalized during the application, development, and implementation stages of
the Company's web site. The costs regarding the ongoing operation and
maintenance are expensed in the period incurred. Internet sales represent less
than 1% of the Company's sales for the nine months ended July 31, 2001 and 2000.

Revenue Recognition

Revenues are recognized when products are shipped or services are rendered to
customers. The Company acts as a principal party in sales transactions, assumes
title to products and assumes the risks and rewards of ownership including risk
of loss for collection, delivery, or returns. Therefore, the Company records
sales on a gross basis. Shipping and handling costs are recorded as a component
of cost of sales.

In December 1999, the Securities and Exchange Commission issued Staff Accounting
Bulletin No. 101 (SAB 101), Revenue Recognition in Financial Statements. SAB 101
provides additional guidance in applying GAAP to revenue recognition in
financial statements. The revenue recognition criteria

                                       8
<PAGE>   10
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)



prescribed by SAB 101 became effective for the Company as of November 1, 2000.
The adoption of SAB 101 did not have a material impact on the Company's
financial position or results of operations.

8. RESTRUCTURING CHARGE, ASSET IMPAIRMENT CHARGE AND OTHER CHARGES

In the third quarter of 2001, the Company recorded charges related to a
restructuring and profitability enhancement plan. The pre-tax charge resulting
from these actions was $6.1 million ($4.3 million after-tax or $0.44 per share
on a basic and diluted basis.) The charge related to approximately $3.1 million
from asset impairments including goodwill, facility and equipment write-downs.
The Company recorded charges for restructuring and other special charges of $3.0
million comprised primarily of severance payments, charge-offs related to
duplicative facility leases, increases in allowance for doubtful accounts and
inventory obsolescence and valuation reserves, costs related to the impairment
of the Company's information systems hardware and software, charges related to
termination and related fees of a pension plan of an acquired Company, and other
charges and expenses related to plant consolidations and restructuring.

As a result of the Company's restructuring plan, approximately 35 employees will
be terminated from the Company primarily as a result of plant and office
consolidations at the Company's Carolina Cut Sheets operation, Chapman Printing
Lexington location and the Garrison Brewer division of Stationers. In addition,
the Company anticipates the elimination of additional positions resulting from
retirements and normal attrition within the next twelve to eighteen months. As
of July 31, 2001 35 employees were notified of their termination and one retired
position was eliminated. There have been no severance benefits paid as of July
31, 2001.

The cash and non-cash elements of the Company's restructuring charge, asset
impairment charge, and other unusual charges approximated $1.5 million in cash
and $4.6 million non-cash. The charges are classified on the statement of
operations as components of income from continuing operations. Inventory
obsolescence and valuation reserves are classified as a component of cost of
sales. Details of the charges are as follows as of July 31, 2001:

                                    Utilized

<TABLE>
<CAPTION>
                                            Original accrual         Cash             Noncash       Ended balance July 31, 2001
<S>                                         <C>                   <C>                <C>            <C>
Write-down of goodwill, facilities and         $3,060,000         $       --         $3,060,000             $       --
equipment

Employee severance and termination                 55,000                 --                 --                 55,000
benefits

Inventory obsolescence and valuation              978,000                 --            671,000                307,000
reserves

Restructuring and other charges                 1,998,000            176,000            509,000              1,313,000
                                               ----------         ----------         ----------             ----------
Total                                          $6,091,000         $  176,000         $4,240,000             $1,675,000
                                               ==========         ==========         ==========             ==========
</TABLE>


                                       9
<PAGE>   11
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)



9. INDUSTRY SEGMENT INFORMATION

The Company operates principally in two industry segments organized on the basis
of product lines: the production, printing and sale, principally to commercial
customers, of printed materials (including brochures, pamphlets, reports, tags,
continuous and other forms), and the sale of office products and office
furniture including interior design services.

The table below presents information about reported segments for the three and
nine months ending July 31:

<TABLE>
<CAPTION>
                                                                 OFFICE PRODUCTS
2001 QUARTER 3                                PRINTING             & FURNITURE              TOTAL
--------------                                --------             -----------              -----
<S>                                         <C>                  <C>                    <C>
Revenues                                    $ 25,554,645          $  7,475,187          $ 33,029,832

Elimination of intersegment revenue           (2,124,551)             (668,741)           (2,793,292)
                                            ------------          ------------          ------------

Consolidated revenues                       $ 23,430,094          $  6,806,446          $ 30,236,540
                                            ============          ============          ============

Operating (loss)                              (3,339,896)           (2,542,383)           (5,882,279)

Depreciation & amortization                    1,061,964                68,483             1,130,447

Capital expenditures                             559,440                22,854               582,294

Identifiable assets                           53,508,288            10,955,338            64,463,626
</TABLE>

<TABLE>
<CAPTION>
                                                                 OFFICE PRODUCTS
2000 QUARTER 3                                PRINTING             & FURNITURE              TOTAL
--------------                                --------             -----------              -----
<S>                                         <C>                  <C>                    <C>
Revenues                                    $ 25,573,233          $  7,977,806          $ 33,551,039

Elimination of intersegment revenue           (2,307,214)             (829,027)           (3,136,241)
                                            ------------          ------------          ------------

Consolidated revenues                       $ 23,266,019          $  7,148,779          $ 30,414,798
                                            ============          ============          ============

Operating income                                 743,129               279,552             1,022,681

Depreciation & amortization                    1,005,078                72,511             1,077,589

Capital expenditures                             741,609                30,135               771,744

Identifiable assets                           57,939,115            12,379,588            70,318,703
</TABLE>


                                       10
<PAGE>   12
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)



<TABLE>
<CAPTION>
                                                                 OFFICE PRODUCTS
2001  YEAR TO DATE                            PRINTING             & FURNITURE              TOTAL
------------------                            --------             -----------              -----
<S>                                         <C>                  <C>                    <C>
Revenues                                    $ 79,345,532          $ 22,601,150          $101,946,682

Elimination of intersegment revenue           (6,853,931)           (2,162,885)           (9,016,816)
                                            ------------          ------------          ------------

Consolidated revenues                       $ 72,491,601          $ 20,438,265          $ 92,929,866
                                            ============          ============          ============

Operating (loss)                              (1,604,275)           (2,253,641)           (3,857,916)

Depreciation & amortization                    3,159,647               200,442             3,360,089

Capital expenditures                           1,652,136                78,567             1,730,703

Identifiable assets                           53,508,288            10,955,338            64,463,626
</TABLE>

<TABLE>
<CAPTION>
                                                                 OFFICE PRODUCTS
2000  YEAR TO DATE                            PRINTING             & FURNITURE              TOTAL
------------------                            --------             -----------              -----
<S>                                         <C>                  <C>                    <C>
Revenues                                    $ 78,588,549          $ 25,063,116          $103,651,665

Elimination of intersegment revenue           (6,861,164)           (2,709,373)           (9,570,537)
                                            ------------          ------------          ------------

Consolidated revenues                       $ 71,727,385          $ 22,353,743          $ 94,081,128
                                            ============          ============          ============

Operating income                               2,449,777               959,790             3,409,567

Depreciation & amortization                    2,933,808               211,599             3,145,407

Capital expenditures                           2,209,061               101,200             2,310,261

Identifiable assets                           57,939,115            12,379,588            70,318,703
</TABLE>



                                       11
<PAGE>   13
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

       NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)



A reconciliation of total segment revenues and of total segment operating income
(loss) to income (loss) before income taxes, for the three and nine months ended
July 31, 2001 and 2000, is as follows:

<TABLE>
<CAPTION>
                                                            THREE MONTHS                                   NINE MONTHS
                                                     2001                   2000                   2001                   2000
                                                -------------          -------------          -------------          -------------
<S>                                             <C>                    <C>                    <C>                    <C>
Revenues:
    Total segment revenues                      $  33,029,832          $  33,551,039          $ 101,946,682          $ 103,651,665
  Elimination of intersegment revenue              (2,793,292)            (3,136,241)            (9,016,816)            (9,570,537)
                                                -------------          -------------          -------------          -------------

  Consolidated revenue                          $  30,236,540          $  30,414,798          $  92,929,866          $  94,081,128
                                                =============          =============          =============          =============

Operating Income:
  Total segment operating income (loss)         $  (5,882,279)         $   1,022,681          $  (3,857,916)         $   3,409,567

  Interest income                                       8,208                 14,791                 54,692                 37,516

  Interest expense                                   (183,056)              (287,648)              (683,206)              (770,374)

  Other income                                         32,537                 14,677                503,394                100,945
                                                -------------          -------------          -------------          -------------

Consolidated income (loss)
   before income taxes                          $  (6,024,590)         $     764,501          $  (3,983,036)         $   2,777,654
                                                =============          =============          =============          =============

Identifiable assets:
  Total segment identifiable assets             $  64,463,626          $  70,318,703          $  64,463,626          $  70,318,703
  Elimination of intersegment assets
                                                -------------          -------------          -------------          -------------

  Total consolidated assets                     $  64,463,626          $  70,318,703          $  64,463,626          $  70,318,703
                                                =============          =============          =============          =============
</TABLE>




                                       12
<PAGE>   14
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, information derived
from the Consolidated Income Statements as a percentage of total revenues.


<TABLE>
<CAPTION>
                                                                  PERCENTAGE OF TOTAL REVENUES
                                                      THREE MONTHS ENDED               NINE MONTHS ENDED
                                                            JULY 31,                        JULY 31,
                                                      2001           2000             2001            2000
                                                      ----           ----             ----            ----
<S>                                                  <C>             <C>             <C>             <C>
Revenues:
   Printing                                           77.5%           76.5%           78.0%           76.3%
   Office products and office furniture               22.5            23.5            22.0            23.7
                                                     -----           -----           -----           -----
            Total revenues                           100.0           100.0           100.0           100.0

Cost of sales:
   Printing                                           59.0            53.5            57.2            54.4
   Office products and office furniture               16.0            16.0            15.3            16.0
                                                     -----           -----           -----           -----
            Total cost of sales                       75.0            69.5            72.5            70.4
                                                     -----           -----           -----           -----
Gross profit                                          25.0            30.5            27.5            29.6
Selling, general and administrative expenses          27.6            27.1            26.1            26.0
Restructuring and other charges                        6.5              --             2.2              --
Asset impairment charges                              10.4              --             3.4              --
                                                     -----           -----           -----           -----
Income (loss) from operations                        (19.5)            3.4            (4.2)            3.6
   Interest income                                     0.1             0.1             0.1             0.0
   Interest (expense)                                 (0.6)           (1.0)           (0.7)           (0.8)
   Other income                                        0.1             0.0             0.5             0.1
                                                     -----           -----           -----           -----
Income (loss) before taxes                           (19.9)            2.5            (4.3)            2.9
   Income taxes                                        5.9            (1.0)            1.0            (1.2)
                                                     -----           -----           -----           -----
Net income (loss)                                    (14.0%)           1.5%           (3.3%)           1.7%
                                                     =====           =====           =====           =====
</TABLE>


THREE MONTHS ENDED JULY 31, 2001 COMPARED TO THREE MONTHS ENDED JULY 31, 2000

Revenues

Total revenues decreased 0.6% in the third quarter of 2001 compared to the same
period in 2000 from $30.4 million to $30.2 million. Printing revenue increased
0.7% in the third quarter of 2001 to $23.4 million from $23.3 million in the
third quarter of 2000. Office products and office furniture revenue decreased
4.8% in the third quarter of 2001 to $6.8 million from $7.1 million in the third
quarter of 2000. The revenues in the printing segment were basically flat for
the quarter. The decrease in revenues for the office products and office
furniture segment was primarily attributable to an overall sluggish market in
most of the geographic regions served by the Company.


                                       13
<PAGE>   15
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Cost of Sales

Total cost of sales increased 7.2% in the third quarter of 2001 to $22.7 million
from $21.1 million in the third quarter of 2000. Printing cost of sales
increased 9.5% in the third quarter of 2001 to $17.8 million from $16.3 million
in the third quarter of 2000, due primarily from inventory obsolescence and
valuation reserves recorded by the Company resulting from the Company's adoption
of a corporate-wide restructuring and profitability enhancement plan as well as
lower gross margins resulting from increased competition. Office products and
office furniture cost of sales decreased 0.7% in the third quarter of 2001 to
$4.8 million from $4.9 million in the third quarter of 2000. The decrease in
office products and office furniture cost of sales is attributable to the lower
sales discussed above and increased competition.

Operating Expenses

In the third quarter of 2001, selling, general and administrative expenses
increased as a percentage of sales to 27.6% from 27.1% in 2000. Total selling,
general and administrative expenses increased $100,000 to $8.3 million in the
third quarter of 2001 from $8.2 million in the third quarter of 2000.

The Company initiated a corporate-wide restructuring and profitability
enhancement plan in the third quarter of 2001. The plan was implemented to
effectuate certain key initiatives including plant and office consolidations,
headcount reductions, asset impairment issues and a general response to a
deteriorating economic environment. As a result of the restructuring plan, the
Company recorded a pre-tax charge of $6.1 million or $4.3 million net of tax or
$0.44 per share. The charges were composed of the following components:
write-down of goodwill, facilities and equipment of $3,060,000; employee
severance and termination benefits of $55,000 and restructuring and other
charges of $2,976,000. The restructuring and other charges included charges
related to increases and related write-offs in the allowance for doubtful
accounts, inventory obsolescence reserves and inventory valuation modifications,
charge-off related to duplicative facility leases, computer systems related
charges, termination fees of a pension plan of an acquired company, and other
general charges to implement the above mentioned plan.

The charges are classified on the statement of operations as components of
income from continuing operations. Inventory obsolescence and valuation reserves
are classified as a component of cost of sales.

Income (loss) from Operations and Other Income and Expenses

Income from operations decreased 675.0% in the third quarter of 2001 to a loss
of ($5.9) million from income of $1.0 million in the third quarter of 2000. This
decrease is primarily the result of charges related to asset impairment and
restructuring charges. Other income increased approximately $100,000 due to
lower total interest expense.

Income Taxes

The Company's effective income tax rate was a 29.5% tax benefit for the third
quarter of 2001, compared with income tax expense of 40.9% in the third quarter
of 2000. The Company recorded a tax benefit in the third quarter of 2001 as a
result of restructuring and asset impairment charges. The rate is reflective of
certain tax attributes of non-deductible goodwill resulting from asset
impairment charges.

                                       14
<PAGE>   16
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


The effective income tax rate in 2000 approximates the combined federal and
state, net of federal benefit, statutory income tax rate.

Net Income (loss)

Net loss for the third quarter of 2001 was ($4,246,000) compared to net income
of $452,000 in the third quarter of 2000. Basic and diluted earnings (loss) per
share for the three months ended July 31, 2001 and 2000 were ($0.44) and $0.05.


NINE MONTHS ENDED JULY 31, 2001 COMPARED TO NINE MONTHS ENDED JULY 31, 2000

Revenues

Total revenues decreased 1.2% in the first nine months of 2001 compared to the
same period in 2000 to $92.9 million from $94.1 million. Printing revenue
increased 1.1% in the nine month period ended July 31, 2001 to $72.5 million
from $71.7 million in the same period in 2000. Office products and office
furniture revenue decreased 8.6% in the nine month period ended July 31, 2001 to
$20.4 million from $22.4 million in the same period in 2000. The increase in
revenues for the printing segment was primarily due to paper sales resulting
from the Cordage acquisition. The decrease in revenues for the office products
and office furniture segment was primarily attributable to an overall sluggish
market in most of the geographic regions served by the Company.

Cost of Sales

Total cost of sales increased 1.8% in the nine months ended July 31, 2001 to
$67.4 million from $66.2 million in the nine months ended July 31, 2000.
Printing cost of sales increased 3.9% in the nine months ended July 31, 2001 to
$53.2 million from $51.1 million in the nine months ended July 31, 2000, due to
the recording of inventory obsolescence and valuation reserves, the increase in
printing sales noted above and a reduction in gross profit percentages. Office
products and office furniture cost of sales decreased 5.3% in the nine months
ended July 31, 2001 to $14.2 million from $15.1 million in the nine months ended
July 31, 2000. The decrease in office products and office furniture cost of
sales is attributable to a decrease in office products and office furniture
sales coupled with lower gross margin percentages.

Operating Expenses

During the nine months ended July 31, 2001 compared to the same period in 2000,
selling, general, and administrative expenses increased slightly as a percentage
of sales to 26.1% from 26.0%.

The Company initiated a corporate-wide restructuring and profitability
enhancement plan in the third quarter of 2001. The plan was implemented to
effectuate certain key initiatives including plant and office consolidations,
headcount reductions, asset impairment issues and a general response to a
deteriorating economic environment. As a result of the restructuring plan
previously described, the Company recorded a pre-tax charge of $6.1 million or
$4.3 million net of tax or $0.44 per share.

The charges are classified on the statement of operations as components of
income from continuing operations. Inventory obsolescence and valuation reserves
are classified as a component of cost of sales.


                                       15
<PAGE>   17
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


Income (loss) from Operations and Other Income and Expenses

Income from operations decreased 213.2% in the nine month period ended July 31,
2001 to a loss from operations of ($3.9) million down from income from
operations of $3.4 million in the same period of 2000. This decrease is
primarily the result of lower gross profit percentages, lower sales and charges
related to asset impairment and restructuring charges. Other income increased
approximately $500,000 primarily due to a gain resulting from the strategic
alliance with Xpedx and an overall decrease in interest expense.

Income Taxes

The Company's effective income tax rate was a 23.9% benefit for the nine months
ended July 31, 2001, compared with income tax expense of 40.8% in the same
period of 2000. The Company recorded a tax benefit in the third quarter of 2001
as a result of restructuring and asset impairment charges. The rate is
reflective of certain tax attributes of non-deductible goodwill resulting from
asset impairment charges. The effective income tax rate in 2000 approximates the
combined federal and state, net of federal benefit, statutory income tax rate.

Net Income (loss)

Net loss for the first nine months of 2001 was ($3,029,531) down from net income
of $1,643,523 in the same period of 2000 due to the reasons discussed above.
Basic and diluted earnings (loss) per share for the nine months ended July 31,
2001 and 2000, were ($0.31) and $0.17.

INFLATION AND ECONOMIC CONDITIONS

Management believes that the effect of inflation on the Company's operations has
not been material and will continue to be immaterial for the foreseeable future.
The Company does not have long-term sales and purchase contracts; therefore, to
the extent permitted by competition, it has the ability to pass through to the
customer most cost increases resulting from inflation, if any.

SEASONALITY

Historically, the Company has experienced a greater portion of its annual sales
and net income in the second and fourth quarters than in the first and third
quarters. The second quarter generally reflects increased orders for printing of
corporate annual reports and proxy statements. A post-Labor Day increase in
demand for printing services and office products coincides with the Company's
fourth quarter.

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operations for the nine months ended July 31, 2001, was
$7.1 million compared to $8.1 million during the same period in 2000. This
change in net cash from operations is due primarily to timing changes in assets
and liabilities.

Net cash used in investing activities for the nine months ended July 31, 2001
was $1.8 million compared to $2.1 million during the same period in 2000. The
net cash used in investing activities during the first


                                       16
<PAGE>   18
                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                      AND RESULTS OF OPERATIONS (CONTINUED)


nine months of 2001 primarily relates to equipment purchases and cash used for
the purchase of certain assets of Cordage partially offset with proceeds from a
strategic alliance with Xpedx.

Net cash used in financing activities for the nine months ended July 31, 2001
was $3.8 million compared to net cash used in financing activities of $3.9
million during the same period in 2000. This change is primarily due to higher
net debt repayments in 2000.

Working capital on July 31, 2001 was $26.7 million, a decrease of $2.4 million
from October 31, 2000. The decrease in working capital was primarily from the
use of available funds to reduce long-term debt, acquire property and equipment,
and fund the purchase of a business. Management believes that working capital
and operating ratios remain at acceptable levels.

The Company expects that the combination of funds available from working
capital, borrowings available under the Company's credit facility and
anticipated cash flows from operations will provide sufficient capital resources
for the foreseeable future. In the event the Company seeks to accelerate
internal growth or make acquisitions beyond these sources, additional financing
would be necessary.

ENVIRONMENTAL REGULATION

The Company is subject to the environmental laws and regulations of the United
States, and the states in which it operates, concerning emissions into the air,
discharges into the waterways and the generation, handling and disposal of waste
materials. The Company's past expenditures relating to environmental compliance
have not had a material effect on the Company. These laws and regulations are
constantly evolving, and it is impossible to predict accurately the effect they
may have upon the capital expenditures, earnings, and competitive position of
the Company in the future. Based upon information currently available,
management believes that expenditures relating to environmental compliance will
not have a material impact on the financial position of the Company.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Form 10-Q, including without limitation
statements including the word "believes," "anticipates," "intends," "expects" or
words of similar import, constitute "forward-looking statements" within the
meaning of section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements of the Company expressed or
implied by such forward-looking statements. Such factors include, among others,
general economic conditions, changes in business strategy or development plans,
and other factors referenced in this Form 10-Q. Given these uncertainties,
readers are cautioned not to place undue reliance on such forward-looking
statements. The Company disclaims any obligation to update any such factors or
to publicly announce the results of any revisions to any of the forward-looking
statements contained herein to reflect future events or developments.


                                       17
<PAGE>   19
                           PART II - OTHER INFORMATION





ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

      a) The following reports on Form 8-K were filed during the quarter for
which this report is filed:

         None.









                                       18
<PAGE>   20
                                   SIGNATURES


Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                     CHAMPION INDUSTRIES, INC.



Date: September 13, 2001             /s/ Marshall T. Reynolds
                                     -------------------------------------------
                                     Marshall T. Reynolds
                                     Chief Executive Officer


Date: September 13, 2001             /s/ Kirby J. Taylor
                                     -------------------------------------------
                                     Kirby J. Taylor
                                     President and Chief Operating Officer


Date: September 13, 2001             /s/ Todd R. Fry
                                     -------------------------------------------
                                     Todd R. Fry
                                     Vice President and Chief Financial Officer







                                       19