<PAGE>

                                 FORM 10-Q


                    SECURITIES AND EXCHANGE COMMISSION
                         Washington, DC 20549


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


For the quarterly period ended January 31, 1997     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                          (I.R.S. Employer
 incorporation or organization)                           Identification No.)

                        2450 First Avenue, P. O. Box 2968
                         Huntington, West Virginia 25728

                    (Address of principal executives offices)
                                   (Zip Code)


                                 (304) 528-2791

                        (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     .
                                             ____    ____ 

8,104,714 shares of common stock of the Registrant were outstanding at 
January 31, 1997.



<PAGE>
                           Champion Industries, Inc.
 
                                     INDEX
 


                                                                        PAGE NO.

Part I. Financial Information
 
   Item 1. Financial Statements
 
        Consolidated Income Statements ...............................     2
 
        Consolidated Balance Sheets...................................     3
 
        Consolidated Statements of Cash Flows.........................     5
 
        Notes to the Consolidated Financial Statements................     6
 
   Item 2. Management's Discussion and Analysis of Financial
           Condition and Results of Operations........................     8
 
Part II. Other Information
 
   Item 6. Exhibits and Reports on Form 8-K...........................    10
 
Signatures............................................................    10
 
Exhibit 11............................................................    11

                                      1


<PAGE>

                 Champion Industries, Inc. and Subsidiaries

                     Consolidated Income Statements
                                (Unaudited)
 


                                                         THREE MONTHS ENDED
                                                             JANUARY 31,
                                                        1997           1996
                                                    -------------  ------------ 
 
Revenues:

  Printing........................................ $  14,419,396  $  9,909,871

  Office products and office furniture............     4,978,470     4,189,665

                                                    -------------  ------------
    Total revenues................................    19,397,866    14,099,536
 
Cost of sales:

  Printing........................................    10,796,910     6,932,479

  Office products and office furniture............     3,332,299     2,843,057

                                                    -------------  ------------
    Total cost of sales...........................    14,129,209     9,775,536
 
Selling, general and administrative expenses......     4,269,160     3,197,866
                                                    -------------  ------------
Income from operations............................       999,497     1,126,134
 
Other income (expense):

  Interest income.................................         7,397         1,298

  Interest expense................................      (181,100)      (60,776)

  Other...........................................       454,846        12,746
                                                    -------------  ------------
 
                                                         281,143      (46,732)
                                                    -------------  ------------
 
Income before income taxes........................     1,280,640     1,079,402

  Income taxes....................................      (539,392)     (443,000)
                                                    -------------  ------------
Net income........................................ $     741,248  $    636,402
                                                    -------------  ------------
                                                    -------------  ------------
Earnings per share................................ $         .09  $        .08
                                                    -------------  ------------
                                                    -------------  ------------
Weighted average shares outstanding...............     8,161,104     8,039,486
                                                    -------------  ------------
                                                    -------------  ------------

   The accompanying notes are an integral part of these financial statements.

                                      2


<PAGE>

                 Champion Industries, Inc. and Subsidiaries

                       Consolidated Balance Sheets
                               (Unaudited)

                                  ASSETS

<TABLE>
<CAPTION>
                                                                     JANUARY 31,    OCTOBER 31,
                                                                       1997           1996
                                                                  -------------  -------------
<S>                                                               <C>            <C>
 
Current assets:
 
  Cash and cash equivalents.....................................  $   1,596,479  $   2,336,764

  Accounts receivable, net of allowance of$886,000 and $514,000.     15,297,665     11,037,897
 
  Inventories...................................................      9,861,499      7,156,466
 
  Other current assets..........................................        748,850        383,282
 
  Deferred tax assets...........................................        329,339        340,334
                                                                  -------------  -------------
 
    Total current assets........................................     27,833,832     21,254,743
 
Property and equipment, at cost:
 
  Land..........................................................        647,340        647,340
 
  Buildings and improvements....................................      3,125,873      3,125,873
 
  Machinery and equipment.......................................     18,938,690     13,802,972
 
  Equipment under capital leases................................      2,801,928      2,801,928
 
  Furniture and fixtures........................................      1,433,859      1,311,368
 
  Vehicles......................................................      1,454,107      1,246,624
                                                                  -------------  -------------
 
                                                                     28,401,797     22,936,105
 
    Less accumulated depreciation...............................     (9,426,668)    (8,917,373)
                                                                  -------------  -------------
 
                                                                     18,975,129     14,018,732
 
Asset held for sale.............................................        300,000             --
 
Cash surrender value of officer's life insurance................        430,907        425,507
 
Goodwill, net of accumulated amortization.......................      3,687,323      2,565,287
 
Other assets....................................................        314,056        318,233
                                                                  -------------  -------------
 
                                                                      4,732,286      3,309,027
                                                                  -------------  -------------
 
    Total assets................................................  $  51,541,247  $  38,582,502
                                                                  -------------  -------------
                                                                  -------------  -------------
</TABLE>
 
   The accompanying notes are an integral part of these financial statements.
 
                                      3


<PAGE>

                  Champion Industries, Inc. and Subsidiaries
 
                         Consolidated Balance Sheets
                                (Unaudited)
 
                     LIABILITIES AND SHAREHOLDERS' EQUITY


<TABLE>
<CAPTION>
                                                                  JANUARY 31,    OCTOBER 31,
                                                                     1997           1996
                                                                 -------------  -------------
<S>                                                              <C>            <C>
 
Current liabilities:
 
  Notes payable................................................  $   2,250,000  $   1,300,000
 
  Accounts payable.............................................      2,711,927      1,542,102
 
  Accrued payroll..............................................      1,328,868      1,030,523
 
  Taxes accrued and withheld...................................        647,171        725,614
 
  Accrued income taxes.........................................        513,528      1,295,188
 
  Accrued expenses.............................................      1,740,780        336,314
 
  Current portion of long-term debt
 
    Notes payable..............................................      2,309,369      1,238,423
 
    Capital lease obligations..................................        536,487        724,615
                                                                 -------------  -------------
 
      Total current liabilities................................     12,038,130      8,192,779
 
Long-term debt, net of current portion
 
  Notes payable................................................     11,619,569      3,750,841
 
  Capital lease obligations....................................      1,646,305      1,535,176
 
Deferred income tax liability..................................      2,728,277      1,677,624
 
Deferred gain..................................................             --        330,443
                                                                 -------------  -------------
 
    Total liabilities..........................................     28,032,231     15,486,863
 
Commitments and contingencies..................................             --             --
 
Shareholders' equity and net assets:
 
  Common stock, $1 par value, 10,000,000 shares authorized;
    8,104,714 and 8,104,907 shares issued and outstanding......      8,104,714      8,104,907
 
  Additional paid-in capital...................................      7,711,294      7,714,777
 
  Retained earnings............................................      7,693,008      7,275,955
                                                                 -------------  -------------
 
  Total shareholders' equity...................................     23,509,016     23,095,639
                                                                 -------------  -------------
 
    Total liabilities and shareholders' equity.................  $  51,541,247  $  38,582,502
                                                                 -------------  -------------
                                                                 -------------  -------------
</TABLE>
 
   The accompanying notes are an integral part of these financial statements.
 
                                      4

<PAGE>

                   Champion Industries, Inc. and Subsidiaries
 
                    Consolidated Statements of Cash Flows
                                (Unaudited)
 
<TABLE>
<CAPTION>
                                                                        THREE MONTHS ENDED
                                                                           JANUARY 31,
                                                                        1997         1996
                                                                     -----------  -----------
<S>                                                                  <C>          <C> 

Cash flows from operating activities:
 
Net income.........................................................  $   741,248  $   636,402
 
Adjustments to reconcile net income to cash provided by operating
  activities:
 
  Depreciation, amortization and accretion.........................      825,561      355,884
 
  Deferred gain on sale of assets..................................     (330,443)      (4,500)
 
  Changes in assets and liabilities:
 
    Accounts receivable............................................      171,232  (1,010,511)
 
    Inventories....................................................     (650,033)     368,676
 
    Other current assets...........................................      (45,568)     (220,395)
 
    Accounts payable...............................................      284,825    (538,786)
 
    Accrued payroll................................................      298,345     (360,890)
 
    Taxes accrued and withheld.....................................        9,557    (245,341)
 
    Accrued income taxes...........................................     (901,062)      (8,633)
 
    Accrued expenses...............................................   (1,454,534)     149,475
                                                                     -----------  -----------
 
Net cash (used in) provided by operations..........................   (1,050,872)    (878,619)
 
Cash flows from investing activities:
 
Purchase of property and equipment.................................     (326,692)    (205,369)
 
Business acquisitions, net of cash received........................      305,000       97,182
 
Cash surrender value of officer's life insurance...................       (5,400)       5,700
 
Other assets.......................................................        4,177      (36,655)
                                                                     -----------  -----------
 
Net cash (used in) provided by investing activities................      (22,915)     (139,142)
 
Cash flows from financing activities:
 
Net borrowings (payments) of notes payable.........................      950,000    1,000,000
 
Proceeds from term debt and leases.................................      281,344           --
 
Principal payments on long term debt...............................     (569,970)    (183,569)
 
Dividends paid.....................................................     (327,872)    (259,415)
                                                                     -----------  -----------
 
Net cash provided by (used in) financing activities................      333,502      557,016
                                                                     -----------  -----------
 
Net (decrease) increase in cash....................................     (740,285)    (460,745)

Cash and cash equivalents, beginning of period.....................    2,336,764    1,350,806
                                                                     -----------  -----------
 
Cash and cash equivalents, end of period...........................  $ 1,596,479  $   890,061
                                                                     -----------  -----------
                                                                     -----------  -----------
</TABLE>
 
   The accompanying notes are an integral part of these financial statements.

                                      5

<PAGE>


                   CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES
 
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 

1. BUSINESS OPERATIONS AND BASIS OF PRESENTATION
 
The foregoing financial information is unaudited and has been prepared from
the records of Champion Industries, Inc., ("Champion" or the "Company"). 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 financial statements
for the year ended October 31, 1996 and related notes thereto contained in the
Company's Form 10-K dated January 28, 1997. The accompanying unaudited financial
statements are presented in accordance with generally accepted accounting
principles and instructions to the Securities and Exchange Commission Form 10-Q.
 
The accompanying consolidated financial statements of Champion Industries,
Inc. and Subsidiaries (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.
and Interform Corporation.
 
2. INVENTORIES
 
Inventories are 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.
 
INVENTORIES CONSISTED OF THE FOLLOWING:
 
<TABLE>
<CAPTION>
                                                                    JANUARY 31,   OCTOBER 31,
                                                                        1997          1996
                                                                    ------------  ------------
<S>                                                                 <C>           <C>
 
    Printing:
 
      Raw materials...............................................  $  3,583,982  $  2,276,070
 
      Work in process.............................................     2,363,487     1,473,021
 
      Finished goods..............................................       918,147       572,228
 
    Office products and office furniture..........................     2,995,883     2,835,147
                                                                    ------------  ------------
 
                                                                    $  9,861,499  $  7,156,466
                                                                    ------------  ------------
                                                                    ------------  ------------
</TABLE>
 
3. EARNINGS PER SHARE
 
Earnings per share were computed based upon 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 Company had
8,161,104 and 8,039,486 weighted average shares issued and outstanding for the
quarters ended January 31, 1997 and 1996, as adjusted for a 25% stock dividend
(see Note 4).

                                      6


<PAGE>


             CHAMPION INDUSTRIES, INC. AND SUBSIDIARIES
 
        NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED), CONTINUED
 


4. SHAREHOLDERS' EQUITY
 
The Company paid a 25% stock dividend, accounted for as a 5 for 4 stock
split, on January 27, 1997 to stockholders of record on January 6, 1997.
1,620,981 shares were issued in the split of which 193 fractional shares were
repurchased.
 
The Company declared a dividend of five cents to be paid on March 28, 1997,
to stockholders of record on March 7, 1997.
 
5. ACQUISITIONS
 
On December 31, 1996, the Company acquired all the issued and outstanding
common shares of Interform Corporation ("Interform"), a business forms printer
located in Bridgeville, Pennsylvania, for $2.5 million. Champion utilized the
proceeds of a loan from a bank to provide the cash consideration and to
refinance the existing long term debt of Interform. The transaction was
accounted for under the purchase method. As of September 30, 1996, Interform had
total assets of $14.9 million and total liabilities of $9.6 million.
 
The following summarizes the unaudited consolidated pro forma results of
operations for the quarters ended January 31, 1997 and 1996, assuming the
acquisition had been consummated at the beginning of each quarter presented.
 
<TABLE>
<CAPTION>
                                                                     1997           1996
                                                                 -------------  -------------
<S>                                                              <C>            <C>
 
    Revenues...................................................  $  25,286,000  $  26,389,000
 
    Net income.................................................  $     657,000  $     390,000
 
    Net income per share.......................................  $         .08  $         .05
 
    Common outstanding shares..................................      8,161,104      8,161,104
</TABLE>
 
                                      7


<PAGE>


             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
                                                                                      JANUARY 31,
                                                                                    1997       1996
                                                                                  ---------  ---------
<S>                                                                               <C>        <C> 
    Revenues:
 
      Printing..................................................................       74.3%      70.3%
 
      Office products and office furniture......................................       25.7       29.7
                                                                                        ---        ---
 
        Total revenues..........................................................      100.0      100.0
 
    Cost of sales:
 
      Printing..................................................................       55.7       49.2
 
      Office products and office furniture......................................       17.1       20.1
                                                                                        ---        ---
 
        Total cost of sales.....................................................       72.8       69.3
 
    Selling, general and administrative expenses................................       22.0       22.7
                                                                                        ---        ---
 
    Income from operations......................................................        5.2        8.0
 
      Interest income...........................................................         .0         .0
 
      Interest expense..........................................................        (.9)       (.4)
 
      Other income..............................................................        2.3         .1
                                                                                        ---        ---
 
    Income before taxes.........................................................        6.6        7.7
 
      Income tax expense........................................................       (2.8)      (3.2)
                                                                                        ---        ---
 
    Net income..................................................................        3.8%       4.5%
                                                                                        ---        ---
                                                                                        ---        ---
</TABLE>
 
Three Months Ended January 31, 1997 Compared to Three Months Ended January
31, 1996
 
 Total revenues increased 37.6% in the first quarter 1997 to $19.4 million from
$14.1 million in the first quarter 1996. Printing revenue increased 45.5% in the
first quarter 1997 to $14.4 million from $9.9 million in the first quarter 1996.
Office products and office furniture revenue increased 18.8% in the first
quarter 1997 to $5.0 million from $4.2 million in the first quarter 1996. This
was achieved through new acquisitions which accounted for increased printing
sales of $ 5.2 million and increased office products and office furniture sales
of $1.2 million. Revenues at an existing printing division were reduced by
approximately $600,000 from the prior quarter by the non-recurring loss of a
state printing contract and sales force turnover. The existing office products
and office furniture divisions also experienced a sales decline from the prior
quarter reflecting a one time furniture sale totaling $500,000 in the first
quarter of 1996. 

Total cost of sales increased 44.5% in the first quarter 1997 to $14.1 million
from $9.8 million in the first quarter 1996. Printing cost of sales increased
55.7% in the first quarter 1997 to $10.8 million from $6.9 million in the first
quarter 1996, due primarily to sales volume and the addition of newly acquired
divisions with lower sales margins. Office products and office furniture cost of
sales increased 17.2% in the first quarter 1997 to $3.3 million from $2.8
million in the first quarter 1996, primarily due to increased sales volume.
Selling, general & administrative expenses declined as a percentage of sales in
first quarter 1997 to 22.0% from 22.7% in the first quarter 1996 due to cost
controls implemented by management and spreading overhead expenses over
increasing revenues.
                                      8
<PAGE>

Income from operations decreased 11.3% in the first quarter 1997 to $1.0 million
from $1.1 million in the first quarter 1996. This decrease was a result of the
revenue decrease at an existing division mentioned above and increased hiring
and training expenses in newly acquired divisions.

On August 30, 1991, Stationers, Inc. sold the assets of its retail bookstore
consisting primarily of inventory and fixtures. Stationers, Inc. unconditionally
guaranteed a bank loan of the purchaser. Accordingly, the original gain from the
sale was deferred and recognized as the purchaser made payments on the bank
loan. Stationers, Inc. is no longer guaranteeing this bank loan. Accordingly,
the remaining deferred gain of $330,000 was recognized in other income during
the three months ended January 31, 1997.

Interest expense on a comparative basis increased $120,000 as a result of
increased debt. Income taxes are running at 42% for the first quarter 1997 which
is up slightly from the 41% in the first quarter 1996. Net income for the first
quarter 1997 increased 16.5% to $700,000 from $600,000 in the first quarter
1996.

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
 
Champion's primary sources of funding for the first quarter 1997 were net
income and borrowings. Funds were used primarily for principal payments on debt,
the purchase of equipment, the funding of increases in accounts receivable and
inventories, the payment of payroll taxes and income taxes and the payment of
regular cash dividends.
 
Working capital on January 31, 1997 was $15.8 million, an increase of $4.2
million from a year ago. The Company's cash balance was $1.6 million on January
31, 1997, a portion of which was invested in highly liquid instruments with
maturities of 90 days or less.
 
The Company has short term credit facilities with banks permitting aggregate
borrowings of $2.8 million. On January 31, 1997, $2.3 million had been drawn
under these facilities. The Company's president personally guarantees a credit
facility of $800,000. There is no assurance that he will continue to do so.
 
The Company expects that the combination of funds available from working
capital, borrowings available under the Company's credit facilities (including
leases as required) 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.

                                      9


<PAGE>

                         PART II -- OTHER INFORMATION
 
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
 
The following reports on Form 8-K were filed during the quarter for which
this report is filed:
 
        1)  Form 8-K dated January 14, 1997, filed January 15, 1997, describing
           the completion of the Company's acquisition of Interform Corporation,
           of Bridgeville, Pennsylvania.
 
                                  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: March 17, 1997             /s/ Marshall T. Reynolds                  
                                 ------------------------------------------
                                 Marshall T. Reynolds
                                President and Chief Executive Officer
 
Date: March 17, 1997            /s/ Joseph C. Worth, III                   
                                -------------------------------------------
                                Joseph C. Worth, III
                                Vice President and Chief Financial Officer
 


                                     10