Champion Reports Bigger Loss on Lower Revenues in Third Quarter

HUNTINGTON, WV—Sept. 10, 2010—Champion Industries, Inc. today announced results for the third quarter of 2010 of a $571,000 loss compared to a loss of $307,000 for the same period in 2009. The results were reflective of restructuring related charges of approximately $1.6 million, or $1.0 million after tax.

On a pro forma basis, adjusted for the restructuring charge, the company would have reported net income of approximately $0.4 million for the three months ended July 31, 2010, compared to a pro forma loss of $0.2 million for the three months ended July 31, 2009.

Net loss for the nine months ended July 31, 2010 was $450,000. This compares to a loss of $646,000 for the same period in 2009. On a pro forma basis, adjusted for the restructuring charge, the company would have reported net income of approximately $0.6 million for the nine months ended July 31, 2010, compared to a pro forma loss of $0.5 million for the nine months ended July 31, 2009.

Marshall T. Reynolds, Chairman of the Board and CEO of Champion, said, “Our year-to-date and third quarter income reflected a strong improvement over the prior year on a pro forma basis adjusting for the restructuring related charges. Our second quarter and year to date results were negatively impacted by costs related to the successful defense of a legal action and would have been even stronger without this event. Our third quarter was focused on continued implementation of our plant rationalization plan and a continued review of our operating cost structure.”

Revenues for the three months ended July 31, 2010 were $31.9 million compared to $34.4 million in the same period in 2009. This change represented a decrease in revenues of $2.5 million or 7.2%.

Revenues for the nine months ended July 31, 2010 decreased to $98.0 million from $107.4 million in 2009. This change represented a decrease in revenues of $9.4 million or 8.7%.

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