UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, DC  20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(D) ofThe Securities Exchange
 Act
 of 1934

|For the quarterly period ended July 31, 1999 | 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 organization) |  | (I.R.S. Employer
      Identification No.)



Route 2
  Kyle Industrial Park
  Industrial Lane
  P. O. Box 2968
  Huntington, West Virginia 25728(Address of principal executives 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, 1999.

Champion Industries, Inc.

INDEX

|                                                                                                    | Page No.
|--------------------------------------------------------------------------------------------------- | --------
|Part I. Financial Information                                                                       |         
|Item 1. Financial Statements                                                                        |         
|Consolidated Balance Sheets                                                                         | 2       
|Consolidated Income Statements                                                                      | 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 | 9       
|                                                                                                    |         
|Part II. Other Information                                                                          |         
|Item 6. Exhibits and Reports on Form 8-K                                                            | 16      
|                                                                                                    |         
|Signatures                                                                                          | 16      
|                                                                                                    |         
|Exhibit Index                                                                                       | 17      

PART I  FINANCIAL INFORMATION

Item 1. Financial Statements

Champion Industries, Inc. and Subsidiaries

Consolidated Balance Sheets(Unaudited)

|ASSETS                                                                   | July 31,     | October 31, 
|------------------------------------------------------------------------ | ------------ | ------------
|                                                                         | 1999         | 1998        
|Current assets:                                                          |              |             
|Cash and cash equivalents                                                | $4,719,833   | $9,773,193  
|Accounts receivable, net of allowance of $1,611,000
      and $1,329,000 | 20,188,868   | 21,234,593  
|Inventories                                                              | 14,042,879   | 12,760,204  
|Other current assets                                                     | 830,690      | 478,306     
|Deferred income tax assets                                               | 935,004      | 935,004     
|Total current assets                                                     | 40,717,274   | 45,181,300  
|                                                                         |              |             
|                                                                         |              |             
|Property and equipment, at cost:                                         |              |             
|Land                                                                     | 984,889      | 984,889     
|Buildings and improvements                                               | 6,159,578    | 5,564,062   
|Machinery and equipment                                                  | 32,255,172   | 29,195,512  
|Equipment under capital leases                                           | 1,600,000    | 2,137,400   
|Furniture and fixtures                                                   | 2,303,684    | 1,943,399   
|Vehicles                                                                 | 2,603,551    | 2,438,462   
|                                                                         | 45,906,874   | 42,263,724  
|Less accumulated depreciation                                            | (19,852,545) | (17,335,378)
|                                                                         | 26,054,329   | 24,928,346  
|                                                                         |              |             
|                                                                         |              |             
|Cash surrender value of officers life insurance                         | 951,369      | 935,169     
|Goodwill, net of accumulated amortization                                | 3,570,852    | 3,026,106   
|Other assets                                                             | 377,057      | 434,407     
|                                                                         | 4,899,278    | 4,395,682   
|Total assets                                                             | $71,670,881  | $74,505,328 
|                                                                         |              |             

See notes to consolidated financial statements.

Champion Industries, Inc. and Subsidiaries

Consolidated Balance Sheets (continued)(Unaudited)

|LIABILITIES AND SHAREHOLDERS EQUITY                                                                          | July 31,    | October 31,
|------------------------------------------------------------------------------------------------------------- | ----------- | -----------
|                                                                                                              | 1999        | 1998       
|Current liabilities:                                                                                          |             |            
|Accounts payable                                                                                              | $2,450,824  | $3,175,743 
|Accrued payroll                                                                                               | 1,580,401   | 1,541,586  
|Taxes accrued and withheld                                                                                    | 807,363     | 597,886    
|Accrued income taxes                                                                                          |            | 175,202    
|Accrued expenses                                                                                              | 904,703     | 716,582    
|Current portion of long-term debt:                                                                            |             |            
|Notes payable                                                                                                 | 3,485,503   | 3,477,473  
|Capital lease obligations                                                                                     | 326,682     | 388,954    
|Total current liabilities                                                                                     | 9,555,476   | 10,073,426 
|                                                                                                              |             |            
|Long-term debt, net of current portion:                                                                       |             |            
|Notes payable                                                                                                 | 10,093,652  | 12,966,038 
|Capital lease obligations                                                                                     | 775,797     | 1,026,517  
|Deferred income tax liability                                                                                 | 4,343,416   | 4,341,150  
|Other liabilities                                                                                             | 802,297     | 788,462    
|Total liabilities                                                                                             | 25,570,638  | 29,195,593 
|                                                                                                              |             |            
|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                                                                                             | 14,144,283  | 13,353,775 
|Total shareholders equity                                                                                    | 46,100,243  | 45,309,735 
|Total liabilities and shareholders equity                                                                    | $71,670,881 | $74,505,328
|                                                                                                              |             |            

See notes to consolidated financial statements.

Champion Industries, Inc. and Subsidiaries

Consolidated Income Statements(Unaudited)

|                                             | Three Months Ended
      July 31, |  | Nine Months Ended
      July 31,
|-------------------------------------------- | --------------------------------- |  | --------------------------------
|                                             | 1999                              |  | 1998                            
|Revenues:                                    |                                   |  |                                 
|Printing                                     | $22,134,943                       |  | $22,912,434                     
|Office products and office furniture         | 7,902,302                         |  | 7,852,973                       
|Total revenues                               | 30,037,245                        |  | 30,765,407                      
|                                             |                                   |  |                                 
|Cost of sales:                               |                                   |  |                                 
|Printing                                     | 15,673,928                        |  | 16,236,711                      
|Office products and office furniture         | 5,448,321                         |  | 5,360,134                       
|Total cost of sales                          | 21,122,249                        |  | 21,596,845                      
|Gross profit                                 | 8,914,996                         |  | 9,168,562                       
|                                             |                                   |  |                                 
|Selling, general and administrative expenses | 8,292,890                         |  | 7,222,726                       
|Income from operations                       | 622,106                           |  | 1,945,836                       
|                                             |                                   |  |                                 
|Other income (expense):                      |                                   |  |                                 
|Interest income                              | 25,334                            |  | 107,148                         
|Interest expense                             | (274,077)                         |  | (372,062)                       
|Other                                        | 37,364                            |  | 35,033                          
|                                             | (211,379)                         |  | (229,881)                       
|Income before income taxes                   | 410,727                           |  | 1,715,955                       
|Income taxes                                 | (154,628)                         |  | (695,323)                       
|Net income                                   | $256,099                          |  | $1,020,632                      
|                                             |                                   |  |                                 
|                                             |                                   |  |                                 
|Earnings per share                           |                                   |  |                                 
|Basic                                        | $0.03                             |  | $0.11                           
|                                             |                                   |  |                                 
|Diluted                                      | 0.03                              |  | 0.11                            
|                                             |                                   |  |                                 
|                                             |                                   |  |                                 
|Weighted average shares outstanding:         |                                   |  |                                 
|Basic                                        | 9,714,000                         |  | 9,647,000                       
|                                             |                                   |  |                                 
|Diluted                                      | 9,716,000                         |  | 9,674,000                       
|                                             |                                   |  |                                 
|Dividends per share                          | $0.05                             |  | $0.05                           
|                                             |                                   |  |                                 

See notes to consolidated financial statements.

Champion Industries, Inc. and Subsidiaries

Consolidated Statements of Cash Flows
  (Unaudited)

|                                                                                    | Nine Months Ended
      July 31,
|----------------------------------------------------------------------------------- | --------------------------------
|                                                                                    | 1999                            
|Cash flows from operating activities:                                               |                                 
|Net income                                                                          | $2,247,593                      
|Adjustments to reconcile net income to cash provided
      by operating activities: |                                 
|Depreciation and amortization                                                       | 2,928,367                       
|Gain on sales of assets                                                             | (5,680)                         
|Other                                                                               | (16,200)                        
|Changes in assets and liabilities:                                                  |                                 
|Accounts receivable                                                                 | 1,411,200                       
|Inventories                                                                         | (1,167,544)                     
|Other current assets                                                                | (349,934)                       
|Accounts payable                                                                    | (1,156,571)                     
|Accrued payroll                                                                     | 17,084                          
|Taxes accrued and withheld                                                          | 191,833                         
|Accrued income taxes                                                                | (195,663)                       
|Accrued expenses                                                                    | 130,611                         
|Net cash provided by operations                                                     | 4,035,096                       
|                                                                                    |                                 
|Cash flows from investing activities:                                               |                                 
|Purchases of property and equipment                                                 | (3,066,166)                     
|Proceeds from sales of property and equipment                                       | 150,388                         
|Business acquisitions, net of cash received                                         | (1,014,236)                     
|Other assets                                                                        | 44,456                          
|Net cash used in investing activities                                               | (3,885,558)                     
|                                                                                    |                                 
|Cash flows from financing activities:                                               |                                 
|Net payments on notes payable                                                       |                                
|Proceeds from term debt and leases                                                  | 45,615                          
|Principal payments on long-term debt                                                | (3,791,428)                     
|Proceeds from stock offering, net of issuance
      expenses                        |                                
|Proceeds from exercise of stock options                                             |                                
|Dividends paid                                                                      | (1,457,085)                     
|Net cash (used in) provided by financing activities                                 | (5,202,898)                     
|Net (decrease) increase in cash                                                     | (5,053,360)                     
|Cash and cash equivalents, beginning of period                                      | 9,773,193                       
|Cash and cash equivalents, end of period                                            | $4,719,833                      
|                                                                                    |                                 

See notes to consolidated financial statements.

Champion Industries, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

July 31, 1999

1.  Basis of Presentation and Business Operations

The foregoing financial information has been prepared in accordance with
 generally
 accepted accounting principles and rules and regulations of the Securities and Exchange Commission
 for interim financial reporting. The preparation of the financial statements in accordance with
 generally accepted accounting principles 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
 generally accepted accounting principles. These interim financial statements should be read in
 conjunction with the consolidated financial statements for the year ended October 31, 1998, and
 related notes thereto contained in the Champion Industries, Inc.s Form 10-K dated January
 29,
 1999. 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, and Thompson
s
 of Morgantown, 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. The effect of dilutive stock options increased
 weighted average shares outstanding by 2,000 and 27,000 for the three months ended July 31, 1999
 and 1998, and 1,000 and 38,000 for the nine months ended July 31, 1999 and 1998.

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.

3.  Inventories (continued)

Inventories consisted of the following:

|                                     | July 31,    |  | October 31,
|------------------------------------ | ----------- |  | -----------
|                                     | 1999        |  | 1998       
|Printing:                            |             |  |            
|Raw materials                        | $3,435,203  |  | $3,117,249 
|Work in process                      | 2,327,809   |  | 2,112,007  
|Finished goods                       | 4,150,994   |  | 3,621,439  
|Office products and office furniture | 4,128,873   |  | 3,909,509  
|                                     | $14,042,879 |  | $12,760,204
|                                     |             |  |            

4.  Long-Term Debt

Long-term debt consisted of the following:

|                                             | July 31,    |  | October 31,
|-------------------------------------------- | ----------- |  | -----------
|                                             | 1999        |  | 1998       
|Unsecured term note payable                  | $8,482,143  |  | $9,821,428 
|Secured installment notes payable to banks   | 4,449,367   |  | 5,914,224  
|Unsecured installment notes payable to banks |            |  | 13,133     
|Mortgage note payable to a bank              | 647,645     |  | 694,726    
|Capital lease obligations                    | 1,102,479   |  | 1,415,471  
|                                             | 14,681,634  |  | 17,858,982 
|Less current portion                         | 3,812,185   |  | 3,866,427  
|Long-term debt, net of current portion       | $10,869,449 |  | $13,992,555

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 an interest rate approximating the
 prime rate. 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, 1999. The Company
 had long-term debt refinancings of approximately $3.4 million during the nine month period ended
 July 31, 1999.

5.  Shareholders Equity

In April 1998, the Company completed an offering of 1,091,993
  common shares. The shares were sold at $14.50 per share before underwriting
  discounts and commissions of $1.015 per share. The net proceeds (net of underwriting
  discounts, commissions and offering expenses) to the Company from this offering
  approximated $14.1 million. The net proceeds from the offering have been and
  will continue to be used by the Company for debt reduction, working capital
  and general corporate purposes.

5.  Shareholders Equity (continued)

The Company declared a dividend of five cents per share to be paid on September
 30, 1999, to stockholders of record on September 20, 1999.

6.  Acquisitions

On July 16, 1999, the Company acquired certain assets and assumed certain
 liabilities of AIM Printing of Knoxville, Tennessee. On June 1, 1999, the Company acquired all of
 the issued and outstanding common stock of Independent Printing Service, Inc. of Evansville,
 Indiana. These transactions were accounted for under the purchase method.

On February 2, 1998, the Company acquired all of the issued and outstanding
 common
 stock of Rose City Press of Charleston, West Virginia, an office products company, in exchange for
 75,722 shares of its common stock with a market value at the time of acquisition of $1,250,000.
 This transaction was accounted for under the purchase method.

On May 18, 1998, the Company acquired all of the issued and outstanding common
 shares of Capitol Business Equipment, Inc. (Capitol), doing business as Capitol
 Business Interiors of Charleston, West Virginia, in exchange for 72,202 shares of its common stock
 with a market value at the time of acquisition of $1,000,000.

On May 29, 1998, the Company acquired all of the issued and outstanding common
 stock of Thompsons of Morgantown, Inc. and Thompsons of Barbour County, Inc.
 (collectively referred to as Thompson), both companies doing business as Thompson





s Office Furniture and Supplies of Morgantown and Philippi, West Virginia, in exchange for 45,473
 shares of its common stock with a market value at the time of acquisition of $600,000.

The Capitol and Thompson transactions were accounted for under the pooling of
 interests method. However, prior period financial statements were not restated due to the
 immaterial effect on Champions consolidated financial statements. Accordingly, Capitol
s
 and Thompsons operations are included in these consolidated financial statements since their
 respective acquisition dates.

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

Champion Industries, Inc. and Subsidiaries

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

Overview

The Company is a commercial printer, business forms manufacturer and office
 products and office furniture supplier in regional markets east of the Mississippi. The Company
 has
 grown through acquisitions and internal growth. As a result of this growth, the Company has
 realized economies of scale and operational efficiencies.

The Company intends to continue its strategy of aggressively increasing its
 market
 share in areas it currently serves and expanding into new markets through acquisitions. The
 Company
 believes the printing and office products industries are highly fragmented and that it is well
 positioned to acquire desirable businesses in existing market areas, contiguous geographical
 regions, and new geographical markets. The consolidated financial statements, results of
 operations, and cash flows could be materially impacted depending on the timing and magnitude of
 acquisitions.

The Companys revenues consist primarily of sales of commercial printing,
 business forms, tags, other printed products, office supplies, office furniture, data products,
 and
 office design services. The Company recognizes revenue when products are shipped or services are
 rendered to the customer. The Companys revenues are subject to quarterly fluctuations caused
 by variations in demand for its products.

The Companys cost of sales primarily consist of raw materials, including
 paper, ink, pre-press and purchased office supplies, furniture and data products, and
 manufacturing
 costs including direct labor, indirect labor, and overhead. Significant factors affecting cost of
 sales include the cost of paper in both printing and office supplies, labor costs and other raw
 materials.

The Companys operating costs consist of selling, general
  and administrative expenses. These costs include salaries and wages for sales,
  customer service, accounting, administrative and executive personnel, employee
  benefits, sales commissions, rent, utilities, and equipment maintenance.

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.

|                                             | Percentage of Total Revenues     
|-------------------------------------------- | ---------------------------------
|                                             | Three Months Ended
      July 31,
|                                             | 1999                             
|Revenues:                                    |                                  
|Printing                                     | 73.7%                            
|Office products and office furniture         | 26.3                             
|Total revenues                               | 100.0                            
|                                             |                                  
|Cost of sales:                               |                                  
|Printing                                     | 52.2                             
|Office products and office furniture         | 18.1                             
|Total cost of sales                          | 70.3                             
|Gross profit                                 | 29.7                             
|Selling, general and administrative expenses | 27.6                             
|Income from operations                       | 2.1                              
|Interest income                              | 0.1                              
|Interest (expense)                           | (0.9)                            
|Other income                                 | 0.1                              
|Income before taxes                          | 1.4                              
|Income tax expense                           | (0.5)                            
|Net income                                   | 0.9%                             
|                                             |                                  

Three Months Ended July 31, 1999 Compared to Three Months Ended July 31, 1998

Revenues

Total revenues declined 2.4% in the third quarter of 1999 compared
  to the same period in 1998 to $30.0 million from $30.8 million. Printing revenue
  decreased 3.4% in the third quarter 1999 to $22.1 million from $22.9 million
  in the third quarter of 1998 due to sluggish sales in most of the geographical
  areas served by Champion affiliates. In addition, printing sales were impacted
  approximately $0.6 million as a result of the scheduled maintenance on a major
  web press that took longer than expected due to a slight delay by the parts
  manufacturer. This press was again fully operational by mid-July 1999. Office
  products and office furniture revenue remained relatively constant at $7.9 million
  in the third quarter of 1999 compared to 1998.

Cost of Sales

Total cost of sales decreased 2.2% in the third quarter of 1999 to $21.1 million
 from $21.6 million in the third quarter of 1998. Printing cost of sales decreased 3.5% in the
 third
 quarter of 1999 to $15.7 million from $16.2 million in the third quarter of 1998, due primarily to
 the decline in printing sales noted above. Office products and office furniture cost of sales
 remained relatively constant at $5.4 million in the third quarter of 1999 compared to the same
 period in 1998.

Operating Expenses

In the third quarter of 1999, selling, general and administrative expenses (S, G
& A expenses) increased as a percentage of sales to 27.6% from 23.5% reported in the third
 quarter of 1998. Expenses were impacted by increased salaries and wages, costs incurred to
 implement the new information system, depreciation of newly acquired equipment, rising health care
 costs, and the Capitol and Thompson acquisitions. The results of operations for the third quarter
 of 1999 include Capitol and Thompson for the entire period, whereas the corresponding period in
 1998 includes only two months. The ratio of S, G & A expenses to revenues was also negatively
 impacted by the decline in revenues as previously discussed.

Income from Operations and Other Income and Expenses

Income from operations decreased 68.0% in the third quarter of 1999 to $0.6
 million from $1.9 million in the third quarter of 1998. This decrease is primarily the result of
 the decline in sales and increased operating expenses. Interest income declined $82,000 as a
 result
 of lower investable funds. These funds have been primarily used to make debt payments, acquire
 equipment and fund other operational needs. Interest expense on a comparative basis decreased
 $98,000 as a result of normal and accelerated debt payments.

Income Taxes

The Companys effective income tax rate was 37.6% for the third quarter of
 1999, down from 40.5% in the third quarter of 1998 as a result of tax attributes associated with
 acquired businesses. The effective income tax rate approximates the combined federal and state,
 net
 of federal benefit, statutory income tax rate.

Net Income

Net income for the third quarter of 1999 decreased 74.9% to
  $0.26 million from $1.02 million in the third quarter of 1998 due to the decline
  in sales and increased operating expenses. Basic and diluted earnings per share
  for the three months ended July 31, 1999 and 1998, were $0.03 and $0.11.

Nine Months Ended July 31, 1999 Compared to Nine Months Ended July 31, 1998

Revenues

Total revenues declined 0.7% in the first nine months of 1999 compared to the
 same
 period in 1998 to $90.1 million from $90.7 million. Printing revenue decreased 3.2% in the nine
 month period ended July 31, 1999 to $68.1 million from $70.3 million in the same period of 1998.
 Office products and office furniture revenue increased 8.1% from the nine month period ended July
 31, 1999 compared to the same period in 1998. This growth was primarily from the Rose City,
 Capitol, and Thompson acquisitions, which contributed approximately $3.3 million in revenue to the
 first nine months of 1999 versus the same period in 1998. Core office products and office
 furniture
 revenue declined $1.7 million during the same period primarily due to a soft West Virginia market
 during the second quarter of 1999.

Cost of Sales

Total cost of sales decreased 1.0% in the nine months ended July 31, 1999 to
 $62.8
 million from $63.4 million in the nine months ended July 31, 1998. Printing cost of sales
 decreased
 3.4% in the nine months ended July 31, 1999 to $48.0 million from $49.7 million in the nine months
 ended July 31, 1998, due primarily to the decline in printing sales noted above. Office products
 and office furniture cost of sales increased 7.5% in the nine months ended July 31, 1999 to $14.8
 million from $13.8 million in the nine months ended July 31, 1998. The increase in office products
 and office furniture cost of sales is primarily attributable to the acquisitions of Capitol, Rose
 City, and Thompson.

Operating Expenses

During the nine months ended July 31, 1999 compared to the same period in 1998,
 selling, general and administrative expenses increased as a percentage of sales to 25.4% from
 23.8%
 primarily due to the decline in revenues and increases in salary expense, depreciation on newly
 acquired equipment, and expenses of Rose City, Capitol, and Thompson. The results of operations
 for
 the nine months ended July 31, 1999 include Rose City, Capitol and Thompson for the entire period,
 whereas the corresponding period in 1998 includes only the activity since their respective
 acquisition dates.

Income from Operations and Other Income and Expenses

Income from operations decreased 22.3% in the nine month period
  ended July 31, 1999 to $4.5 million from $5.7 million in the same period of
  1998. This decrease is primarily the result of the decline in sales and increased
  operating expenses as previously discussed. Interest income decreased $33,000
  as a result of lower investable funds. Interest expense on a comparative basis
  decreased $287,000 as a result of normal debt repayments and the use of a portion
  of the stock proceeds to pay-off all short-term notes payable and some of the
  higher cost long-term debt assumed in acquisitions. Other income decreased from
  $196,000 in the first nine months of 1998 to $104,000 in the same period of
  1999 due primarily to a one-time gain from the disposal of assets in the first
  nine months of 1998.

Income Taxes

The Companys effective income tax rate was 39.8% for the nine months ended
 July 31, 1999, down from 41.5% in the same period of 1998 as a result of tax attributes associated
 with acquired businesses. The effective income tax rate approximates the combined federal and
 state, net of federal benefit, statutory income tax rate.

Net Income

Net income for the first nine months of 1999 decreased 20.8% to $2.25 million
 from
 $2.84 million in the same period of 1998 due to the explanations provided above. Basic and diluted
 earnings per share for the nine months ended July 31, 1999 and 1998, were $0.23 and $0.32.

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, 1999, was $4.0
 million compared to $4.8 million during the same period in 1998. The decline in net cash from
 operations is due primarily to the decrease in net income in 1999 versus 1998.

Net cash used in investing activities for the nine months ended July 31, 1999,
 was
 $3.9 million compared to $0.8 million during the same period in 1998. The increase in net cash
 used
 in investing activities during the first nine months of 1999 compared to 1998 is primarily the
 result of additional equipment purchases, the decrease in proceeds from sales of property and
 equipment, and the net cash used to acquire businesses.

Net cash used in financing activities for the nine months ended July 31, 1999,
 was
 $5.2 million compared to cash provided by financing activities of $7.8 million during the same
 period in 1998. This change is primarily due to the proceeds from the stock offering included in
 the cash flows provided by financing activities during the nine months ended July 31, 1998.

Working capital on July 31, 1999, was $31.2 million, a decrease
  of $3.9 million from October 31, 1998. The decrease in working capital was primarily
  from the use of available funds to reduce higher cost

  long-term debt assumed in acquisitions and acquire additional equipment. 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.

Information Systems and Year 2000 Assessment Update

Management has made the decision to purchase and implement a new information
 system for the printing divisions to maintain their competitiveness, enhance operating and
 administrative efficiencies, and enable the proper processing of transactions relating to the Year
 2000 and beyond. This new system is an enterprise-wide system encompassing sales, purchasing,
 production, and financial reporting. Implementation began in April 1999 and will take
 approximately
 two years. There are three printing systems currently in use that are not Year 2000 compliant. It
 is anticipated that these three systems will be converted by November 30, 1999. In the event that
 these non-compliant systems cannot be converted to the new system by December 31, 1999, the
 current
 systems can be converted to the Companys core printing software, which is Year 2000
 compliant, within a short timeframe at minimal cost. It is anticipated that the new system will
 cost approximately $800,000 ($500,000 related to software and training and $300,000 of hardware
 costs). Approximately $600,000 of these estimated costs will be capitalized and amortized against
 income over a period of five years. It is the opinion of management that the cost of converting
 the
 printing divisions to a new information system and the annual amortization thereof will not
 materially impact results of operations or financial condition. There are a number of risks in
 implementing a new system, including the complexity of the conversion process and the new systems
 themselves, the converting of business data from the old system to the new system, and the need
 for
 comprehensive employee training on the new information systems. There can be no assurance that
 this
 process will not have a material adverse effect on the Companys business and operating
 results.

Based on its assessment of the information currently available,
  management has determined that the office products and office furniture division
  information system is Year 2000 compliant. Once the new information system is
  implemented in all of the printing divisions, a program will be initiated to
  assess the benefits of having all operating segments under one financial management
  information system.

In addition, management has reviewed its business risks associated with
 non-critical systems. Based on the information currently available, these systems are Year 2000
 compliant.

The Company has obtained assurances from its significant suppliers, large
 customers, financial institutions, and others that those parties are Year 2000 compliant or have
 appropriate plans to remediate Year 2000 issues. The Company has received correspondence from most
 major third parties and it appears they are taking reasonable steps to remedy Year 2000 issues.
 The
 Company continues to assess the extent to which its operations are vulnerable should those
 organizations fail to properly remediate their computer systems.  While management believes its
 efforts are adequate to address its Year 2000 concerns, there can be no guarantee that the systems
 of other companies on which the Companys systems and operations rely will be converted on a
 timely basis and will not have an adverse effect on the Companys business, operating results
 or financial position.

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.

PART II  OTHER INFORMATION

Item 6. Exhibits and reports on Form 8-K

a)  The exhibits listed on the Exhibit Index
  on page 17 of this Form 10-Q are filed herewith.

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

None.

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 14, 1999 | /s/ Marshall T. Reynolds                   
|------------------------- | -------------------------------------------
|                          | Marshall T. Reynolds                       
|                          | President and Chief Executive
 Officer     
|                          |                                            
|                          |                                            
|Date:  September 14, 1999 | /s/ David B. McClure                       
|                          | David B. McClure                           
|                          | Vice President and Chief
 Financial Officer

Champion Industries, Inc. and Subsidiaries

Exhibit Index





|Exhibit | Page       | Title                  
|------- | ---------- | -----------------------
|        |            |                        
|27      | electronic | Financial Data Schedule