<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q

     [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934
                For the quarterly period ended September 30, 2001

                                       OR

    [__] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934
           For the transition period from_______________ to___________

                        COMMISSION FILE NUMBER  333-56857
                                                333-56857-01
                                                333-56857-02

                          ALLIANCE LAUNDRY SYSTEMS LLC
                          ALLIANCE LAUNDRY CORPORATION
                          ALLIANCE LAUNDRY HOLDINGS LLC
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

            DELAWARE                                    39-1927923
            DELAWARE                                    39-1928505
            DELAWARE                                    52-2055893
(STATE OR OTHER JURISDICTION OF            (I.R.S. EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)

                                  P.O. BOX 990
                           RIPON, WISCONSIN 54971-0990
                    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

                                 (920) 748-3121
              (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 [_]

<PAGE>

                          Alliance Laundry Systems LLC
                                    Form 10-Q
                     For The Period Ended September 30, 2001

                                Table of Contents

<TABLE>
<CAPTION>
                                                                                                      Page No.
                                                                                                      --------
<S>                                                                                                   <C>
PART I     Financial Information

Item 1.    Financial Statements

           Condensed Balance Sheets as of September 30, 2001 and December 31, 2000                          3

           Condensed Statements of Operations for the periods ended September 30, 2001
           and September 30, 2000                                                                           4

           Condensed Statements of Cash Flows for the periods ended September 30, 2001
           and September 30, 2000                                                                           5

           Notes to Unaudited Condensed Financial Statements                                                6

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations            9

PART II    Other Information

Item 1.    Legal Proceedings                                                                               18

Item 2.    Changes in Securities                                                                           18

Item 3.    Defaults upon Senior Securities                                                                 18

Item 4.    Submission of Matters to a Vote of Security Holders                                             18

Item 5.    Other Information                                                                               18

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

Signatures                                                                                                 19
</TABLE>


                                        2

<PAGE>

PART I    FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS


                          ALLIANCE LAUNDRY HOLDINGS LLC
                            CONDENSED BALANCE SHEETS
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                                    September 30,            December 31,
                                                                                        2001                     2000
                                                                                    -------------            ------------
                                    Assets                                           (Unaudited)
<S>                                                                                 <C>                      <C>
Current assets:
    Cash .......................................................................    $     323                $   5,091
    Cash-restricted ............................................................          446                      494
    Accounts receivable, net ...................................................       17,057                   10,575
    Inventories, net ...........................................................       31,801                   37,462
    Prepaid expenses and other .................................................        9,944                    8,825
                                                                                    ---------                ---------
       Total current assets ....................................................       59,571                   62,447

Notes receivable ...............................................................       22,488                   10,208
Property, plant and equipment, net .............................................       49,552                   53,857
Goodwill, net ..................................................................       55,928                   57,327
Debt issuance costs, net .......................................................        8,702                   10,583
Other assets ...................................................................       15,153                   18,335
                                                                                    ---------                ---------
       Total assets ............................................................    $ 211,394                $ 212,757
                                                                                    =========                =========

                  Liabilities and Members' Deficit
Current liabilities:
    Current portion of long-term debt ..........................................    $   1,228                $   1,036
    Accounts payable ...........................................................       14,574                    8,755
    Finance program obligation .................................................        1,707                    3,121
    Revolving credit facility ..................................................        4,000                   12,000
    Other current liabilities ..................................................       21,625                   18,466
                                                                                    ---------                ---------
       Total current liabilities ...............................................       43,134                   43,378


Long-term debt:
    Senior credit facility .....................................................      197,750                  198,500
    Senior subordinated notes ..................................................      110,000                  110,000
    Junior subordinated note ...................................................       16,342                   14,343
    Other long-term debt .......................................................        1,323                      726

Other long-term liabilities ....................................................        1,658                    1,671
                                                                                    ---------                ---------
       Total liabilities .......................................................      370,207                  368,618

Mandatorily redeemable preferred equity ........................................        6,000                    6,000
Members' deficit ...............................................................     (164,813)                (161,861)
                                                                                    ---------                ---------
       Total liabilities and members' deficit ..................................    $ 211,394                $ 212,757
                                                                                    =========                =========
</TABLE>


                                        3

<PAGE>

                          ALLIANCE LAUNDRY HOLDINGS LLC
                       CONDENSED STATEMENTS OF OPERATIONS
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                         Three Months Ended                Nine Months Ended
                                                                   ------------------------------    ------------------------------
                                                                   September 30,    September 30,    September 30,    September 30,
                                                                        2001             2000             2001             2000
                                                                   -------------    -------------    -------------    -------------
                                                                             (Unaudited)                       (Unaudited)
<S>                                                                <C>              <C>              <C>              <C>
Net revenues:
    Commercial laundry .........................................   $  51,792        $  55,911        $ 164,501        $ 179,905
    Service parts ..............................................       8,531            8,651           26,634           26,884
                                                                   ---------        ---------        ---------        -------------
                                                                      60,323           64,562          191,135          206,789

Cost of sales ..................................................      45,495           47,387          143,321          151,859
                                                                   ---------        ---------        ---------        -------------
Gross profit ...................................................      14,828           17,175           47,814           54,930
                                                                   ---------        ---------        ---------        -------------

Selling, general and administrative expense ....................       7,380            9,128           22,470           28,386
Nonrecurring costs .............................................           -              402                -              402
                                                                   ---------        ---------        ---------        -------------
Total operating expenses .......................................       7,380            9,530           22,470           28,788
                                                                   ---------        ---------        ---------        -------------
      Operating income .........................................       7,448            7,645           25,344           26,142

Interest expense ...............................................       8,138            8,920           26,347           27,165
Other income (expense), net ....................................          (3)             460               77              352
                                                                   ---------        ---------        ---------        -------------
      Loss before taxes ........................................        (693)            (815)            (926)            (671)
Provision for income taxes .....................................           -                -               22               20
                                                                   ---------        ---------        ---------        -------------
      Net loss before cumulative effect of
        accounting change ......................................        (693)            (815)            (948)            (691)
Cumulative effect of change in accounting principle ............           -                -            2,043                -
                                                                   ---------        ---------        ---------        -------------
      Net loss .................................................   $    (693)       $    (815)       $  (2,991)       $    (691)
                                                                   =========        =========        =========        =============
</TABLE>


                                        4

<PAGE>
                          ALLIANCE LAUNDRY HOLDINGS LLC
                       CONDENSED STATEMENTS OF CASH FLOWS
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                                                        Nine Months Ended
                                                                                               ---------------------------------
                                                                                                September 30,      September 30,
                                                                                                     2001               2000
                                                                                               --------------     --------------
                                                                                                            (Unaudited)
<S>                                                                                             <C>                <C>
Cash flows from operating activities:
     Net loss before cumulative effect of accounting change ................................   $         (948)     $        (691)
     Adjustments to reconcile net loss before cumulative effect
         of accounting change to cash provided by operating activities;
         excluding the effects of the acquisition opening balance sheet:
            Depreciation and amortization ..................................................           12,625             12,943
            Non-cash interest ..............................................................            3,566              1,685
            Gain on sale of property, plant and equipment ..................................              (77)              (352)
            Changes in assets and liabilities:
               Accounts and notes receivable ...............................................          (18,758)            (2,622)
               Inventories .................................................................            5,661             (6,203)
               Other assets ................................................................             (771)            (3,058)
               Accounts payable ............................................................            5,819              1,777
               Finance program obligation ..................................................           (1,366)                98
               Other liabilities ...........................................................            1,972              1,318
                                                                                                     --------           --------
            Net cash provided by operating activities ......................................            7,723              4,895
                                                                                                     --------           --------

Cash flows from investing activities:
     Additions to property, plant and equipment ............................................           (4,675)            (3,622)
     Acquisition of business ...............................................................               --            (13,399)
     Proceeds on disposal of property, plant and equipment .................................              171              1,329
                                                                                                     --------           --------
            Net cash used in investing activities ..........................................           (4,504)           (15,692)
                                                                                                     --------           --------

Cash flows from financing activities:
     Proceeds from long-term debt ..........................................................              812                750
     Principal payments on long-term debt ..................................................             (799)              (250)
     Net increase/(decrease) from  revolving line of credit borrowings .....................           (8,000)            14,000
     Distribution to Raytheon and related transaction costs ................................               --             (5,920)
                                                                                                     --------           --------
            Net cash provided by (used in) financing activities ............................           (7,987)             8,580
                                                                                                     --------           --------
Decrease in cash ...........................................................................           (4,768)            (2,217)
Cash at beginning of period ................................................................            5,091              3,028
                                                                                                     --------           --------
Cash at end of period ......................................................................   $          323      $         811
                                                                                                     ========           ========
Supplemental disclosure of cash flow information:

     Cash paid for interest ................................................................   $       18,563      $      21,094
</TABLE>


                                       5

<PAGE>
Notes to Unaudited Condensed Financial Statements

NOTE 1.      BASIS OF PRESENTATION

         The unaudited financial statements as of September 30, 2001 and for the
periods ended September 30, 2001 present the consolidated financial position and
results of operations of Alliance Laundry Holdings LLC (the "Company"),
including its wholly-owned direct and indirect subsidiaries, Alliance Laundry
Systems LLC and Alliance Laundry Corporation.

         In the opinion of management, the accompanying unaudited interim
financial statements contain all adjustments necessary (consisting only of
normal recurring adjustments) to present fairly the financial position and
operating results of the Company for the periods presented. The results of
operations for such interim periods are not necessarily indicative of results of
operations to be expected for the full year.

         These financial statements have been prepared by the Company pursuant
to the rules and regulations of the Securities and Exchange Commission. Certain
information and disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been condensed
or omitted pursuant to such regulations, although the Company believes the
disclosures provided are adequate to prevent the information presented from
being misleading.

         Effective April 1, 2001, the Company adopted the provisions of Emerging
Issues Task Force (EITF) Issue No. 99-20 "Recognition of Interest Income and
Impairment on Purchased and Retained Beneficial Interests in Securitized
Financial Assets". In accordance with the provisions of EITF 99-20, the Company
recognized an approximate $2.0 million charge upon adoption, reflecting the
write-down of the Company's retained interests to fair value pursuant to the
impairment provisions of EITF 99-20. The year-to-date net effects on operating
income of adopting EITF 99-20 are not material.

         During the second quarter of 2001, the Company also adopted Statement
of Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities, as replacement
of SFAS No. 125." This Statement revises certain aspects of the current
standards for accounting for securitizations and other transfers of financial
assets and collateral, and requires certain new and expanded disclosures. SFAS
140 was effective for the Company in the second quarter of 2001 and did not have
a material effect on the Company's financial statements. The Company adopted the
disclosure provisions of SFAS 140 during the fourth quarter of 2000.

         The Company adopted Statement of Financial Accounting Standards No. 133
("FAS 133"), "Accounting for Derivative Instruments and Hedging Activities" on
January 1, 2001. In accordance with the transition provisions of FAS 133, the
Company recorded a cumulative-effect-type gain adjustment of $0.7 million in
other comprehensive income (loss) in members' deficit to recognize at fair value
its interest rate swap arrangements at January 1, 2001. The Company expects to
reclassify in earnings during 2001 approximately $0.6 million of the transition
adjustment that was recorded in other comprehensive income (loss). For the nine
months ended September 30, 2001, the Company recognized a loss of $2.1 million
reflecting the changes in the fair values of its interest rate swaps and a gain
of $0.5 million for the reclassification of the transition adjustment as
discussed above. The resulting loss and gain were recorded in interest expense
in the statement of operations.

                                       6

<PAGE>
         During the fourth quarter of 2000, the Company adopted the provisions
of the Emerging Issues Task Force ("EITF") Issue No. 00-10 "Accounting for
Shipping and Handling Fees and Costs." In accordance with the provisions of EITF
00-10, certain shipping and handling fees and costs which the Company had
previously recorded on a net basis as a component of selling, general and
administrative expenses are reflected in net revenues and cost of goods sold as
appropriate. Prior year amounts have been reclassified in the accompanying
statements of operations to conform with the requirements of EITF 00-10.

         During the fourth quarter of 2000, the Company adopted the provisions
of the Emerging Issues Task Force ("EITF") Issue No. 00-14 "Accounting for
Certain Sales Incentives." In accordance with the provisions of EITF 00-14,
certain sales incentive costs which the Company had previously recorded as a
component of selling, general and administrative expenses are reflected in net
revenues. Prior year amounts have been reclassified in the accompanying
statements of operations to conform with the requirements of EITF 00-14.

         Certain amounts in the prior year financial statements have been
reclassified to conform to the current year presentation.

         This report on Form 10-Q for the periods ended September 30, 2001
should be read in conjunction with the audited financial statements presented in
the Company's Annual Report on Form 10-K (file no. 333-56857) filed with the
Securities and Exchange Commission, which includes the audited financial
statements of the Company as of and for the year ended December 31, 2000.

NOTE 2.  INVENTORIES

         Inventories are stated at cost using the first-in, first-out method but
not in excess of net realizable value, and consist of the following (in
thousands):

                                                September 30,      December 31,
                                                    2001              2000
                                               ---------------   ---------------
                                                 (Unaudited)
    Materials and purchased parts.........     $    12,457           $ 13,250
    Work in process.......................           4,677              4,907
    Finished goods........................          17,607             21,895
    Less: inventory reserves..............          (2,940)            (2,590)
                                               ---------------   ---------------
                                               $    31,801           $ 37,462
                                               ===============   ===============

NOTE 3.  COMMITMENTS AND CONTINGENCIES

         On February 8, 1999, the Company's prior owner, Raytheon Company
("Raytheon") commenced an arbitration under the Commercial Arbitration Rules of
the American Arbitration Association in Boston, Massachusetts against the
Company (the "Raytheon Arbitration"), seeking damages of $12.2 million plus
interest thereon and attorney's fees based on Raytheon's claim for
indemnification for a payment made to a third party allegedly on behalf of the
Company and Alliance Laundry Systems LLC ("Alliance Laundry"). The Company
asserted in the Raytheon Arbitration that Raytheon owed the $12.2

                                       7

<PAGE>
million to the third party and that neither the Company nor Alliance Laundry is
liable for such amount. In addition, the Company filed counterclaims and claims
seeking damages in excess of $30 million from Raytheon. On March 31, 2000 the
arbitrators issued their decision. Pursuant to that decision Raytheon prevailed
on its claim and the Company prevailed on its counterclaims. Ultimately the
Company was required to pay Raytheon $6.8 million, including interest, in full
satisfaction of the arbitration award and after offsetting the amount for price
adjustments in favor of the Company which had been agreed to during 1999. The
award payment was made on April 13, 2000. After considering certain price
adjustments previously recorded in the financial statements as of and for the
period ended December 31, 1999, the Company recorded $9.9 million plus related
costs of $0.6 million in the first quarter 2000 financial statements as an
adjustment of members' deficit. This treatment is consistent with the original
recording of the May 5, 1998 Agreement and Plan of Merger which was accounted
for as a recapitalization. The related net interest of $1.5 million, including
amounts related to prior years, was included in interest expense in the first
quarter 2000 financial statements.

         In September 1999, Juan Carlos Lopez pursued an arbitration against
Alliance Laundry Sociedad Anonima, ("ALSA") a foreign subsidiary of Alliance
Laundry Systems LLC, under UNCITRAL rules in Buenos Aires, Argentina, seeking in
pertinent part, to be paid fees arising from a Consulting Agreement, and
indemnification for loss of profits in Argentina and Brazil, plus damages for
pain and suffering. An arbitration was conducted by an "ad-hoc" panel (the
"Lopez Arbitration"), during which ALSA contended that Juan Carlos Lopez failed
to fulfill responsibilities under the Consulting Agreement and was therefore not
entitled to the fees, and that ALSA was not liable for loss of profits either in
Argentina or Brazil, nor for an indemnification for pain and suffering. On April
3, 2001, the Lopez Arbitration was concluded. The arbitration panel awarded
Argentine Pesos $1,408,900 ($1.4 million U.S. dollars), plus nine percent
interest from September 6, 1999, plus ten percent over this principal and
interest amount as moral damages, plus certain fees and costs, while rejecting
other claims of plaintiff. The Company does not believe this arbitration award
will have a material effect on the Company's operations, in as much as ALSA is a
foreign subsidiary and is responsible for its own debts and obligations. The
remaining investment on the Company's financial statements is not material as
this operation was discontinued in the fourth quarter of 1998, at which time the
Company's investment in ALSA was written down to the value of certain remaining
assets. Under the terms of the award, any such payments would have to be
forthcoming from the assets of ALSA.

         Various claims and legal proceedings generally incidental to the normal
course of business are pending or threatened against the Company. While the
ultimate liability from these proceedings is difficult to determine, in the
opinion of management, any additional liability will not have a material effect
on the Company's financial position, liquidity or results of operations.

NOTE 4.  COMPREHENSIVE INCOME/(LOSS)


         Comprehensive income/(loss) for the nine months ended September 30,
2001 and 2000 consist of the following (in thousands):

                                       8

<PAGE>
<TABLE>
<CAPTION>

                                                                                  Nine Months Ended
                                                                    -------------------------------------
                                                                      September 30,        September 30,
                                                                           2001                 2000
                                                                    ---------------        --------------
<S>                                                                 <C>                    <C>
     Comprehensive loss:
         Net loss                                                         $ (2,991)        $         (691)
         Other comprehensive income (loss)
            Net unrealized holding loss on residual interests                 (332)                     -
            Unrealized gain on interest rate swap                              283                      -
                                                                    ---------------        --------------
         Comprehensive loss                                               $ (3,040)        $         (691)
                                                                    ===============        ==============
</TABLE>


NOTE 5.    ACQUISITION OF AJAX PRODUCT LINE

         On March 6, 2000, the Company completed the acquisition of selected
assets of American Laundry Machinery Inc.'s press and finishing equipment
division (d/b/a "Ajax"). Ajax, located in Cincinnati, Ohio, manufactures,
designs and markets a line of presses and finishers serving the drycleaning and
industrial laundry markets. The cash consideration was approximately $13.1
million. The Company also assumed selective liabilities of approximately $1.2
million related to the product line and recorded acquisition costs of $0.3
million. Assets acquired and liabilities assumed have been recorded at their
estimated fair value. The excess of the purchase price over the fair value of
the net assets acquired (goodwill) was approximately $11.1 million and is being
amortized on a straight-line basis over 20 years. The purchase was financed
through the proceeds of trade receivable sales and use of the Revolving Credit
Facility. As part of the Ajax acquisition, the Cincinnati facility was closed,
and production was transferred to the Company's Marianna, Florida manufacturing
facility. As such, a $1.4 million reserve was established in the acquisition
opening balance sheet primarily for employee termination and severance benefit
charges.

         The Ajax acquisition has been accounted for by the purchase method of
accounting for business combinations. Accordingly, the accompanying statements
of operations include only revenue and expenses of Ajax for the period from
March 6, 2000. On a pro-forma basis, this acquisition was not material to the
results of operations for the periods presented and, accordingly, such
information is not presented.

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

OVERVIEW

         The Company believes it is the leading designer, manufacturer and
marketer of stand-alone commercial laundry equipment in North America and a
leader worldwide. Under the well-known brand names of Speed Queen, UniMac,
Huebsch and Ajax, the Company produces a full line of commercial washing
machines and dryers with load capacities from 16 to 250 pounds as well as
presses and finishing equipment. The Company's commercial products are sold to
four distinct customer groups: (i) laundromats; (ii) multi-housing laundries,
consisting primarily of common laundry facilities in apartment buildings,
universities and military installations; (iii) on-premise laundries, consisting

                                       9

<PAGE>

primarily of in-house laundry facilities of hotels, hospitals, nursing homes and
prisons; and (iv) drycleaners.

         This discussion and analysis should be read in conjunction with the
Financial Statements and Notes thereto included in this report and in
conjunction with Management's Discussion and Analysis of Financial Condition and
Results of Operations set forth in the Company's Annual Report on Form 10-K
(file no. 333-56857) filed with the Securities and Exchange Commission, which
includes the audited financial position and operating results of the Company as
of and for the year ended December 31, 2000.

RESULTS OF OPERATIONS

The following table sets forth the Company's historical net revenues for the
periods indicated:

                                                   Quarter Ended
                                      ----------------------------------------
                                        September 30,           September 30,
                                           2001                     2000
                                      ----------------       -----------------
                                                  (Dollars in millions)

    Net revenues:
       Commercial laundry............ $           51.8        $          55.9
       Service parts.................              8.5                    8.7
                                      ----------------       -----------------
                                      $           60.3        $          64.6
                                      ================       =================

The following table sets forth certain condensed historical financial data for
the Company expressed as a percentage of net revenues for each of the periods
indicated:

<TABLE>
<CAPTION>
                                                                                    Quarter Ended
                                                                           -------------------------------
                                                                            September 30,     September 30,
                                                                               2001               2000
                                                                           --------------     ------------
   <S>                                                                     <C>                <C>
    Net revenues.........................................................         100.0%         100.0%
    Cost of sales........................................................          75.4%          73.4%
    Gross profit.........................................................          24.6%          26.6%
    Selling, general and administrative expense..........................          12.3%          14.2%
    Nonrecurring costs...................................................             -            0.6%
    Operating income.....................................................          12.3%          11.8%
       Net loss before cumulative effect of accounting change............          (1.1%)         (1.3%)
</TABLE>



         Net revenues. Net revenues for the quarter ended September 30, 2001
decreased $4.3 million, or 6.6%, to $60.3 million from $64.6 million for the
quarter ended September 30, 2000. This decrease was primarily attributable to
lower commercial laundry revenue of $4.1 million and lower service parts revenue
of $0.2 million. The decrease in commercial laundry revenue was due primarily to
lower North American equipment revenue of $3.2 million and lower earnings from
the Company's off-balance sheet equipment financing program of $0.9 million. The
decrease in North American equipment revenue was

                                       10

<PAGE>

primarily due to lower revenue from laundromats, on-premise laundries and
drycleaners resulting from a general economic slowdown. Finance program revenue
was lower as a result of a non-cash charge of approximately $1.0 million related
to the write-down of the Company's retained interests and notes receivable. This
charge was primarily related to net retained interest adjustments from faster
than expected prepayments due to lower prevailing interest rates.

         Gross profit. Gross profit for the quarter ended September 30, 2001
decreased $2.4 million, or 13.7%, to $14.8 million from $17.2 million for the
quarter ended September 30, 2000. This decrease was primarily attributable to
the lower sales volume as discussed above and manufacturing variances which
occurred as a result of efforts to reduce finished goods inventories. Gross
profit as a percentage of net revenues decreased to 24.6% for the quarter ended
September 30, 2001 from 26.6% for the quarter ended September 30, 2000. This 2%
decrease was primarily attributable to manufacturing volume inefficiencies
related to the lower sales volume and the non-cash finance program charge noted
above.

         Selling, general and administrative expense. Selling, general and
administrative expenses for the quarter ended September 30, 2001 decreased $1.7
million, or 19.1%, to $7.4 million from $9.1 million for the quarter ended
September 30, 2000. The decrease in selling, general and administrative expenses
was primarily due to lower independent development expenses of $0.4 million, a
lower loss on sales of qualified accounts receivable of $0.5 million, lower
one-time expenses related primarily to the relocation of Madisonville, Kentucky
production lines to Ripon, Wisconsin of $0.4 million, lower one-time expenses
related primarily to the relocation of Cincinnati, Ohio production lines to
Marianna, Florida of $0.7 million partly offset by higher pension costs of $0.2
million. Selling, general and administrative expenses as a percentage of net
revenues decreased to 12.3% for the quarter ended September 30, 2001 from 14.2%
for the quarter ended September 30, 2000.

         Nonrecurring costs. There were no nonrecurring costs for the quarter
ended September 30, 2001 as compared to $0.4 million of nonrecurring costs for
the quarter ended September 30, 2000. Nonrecurring costs in 2000 were comprised
entirely of employee termination and severance benefits related to the
relocation of Madisonville, Kentucky production lines to Ripon, Wisconsin.

         Operating income. As a result of the foregoing, operating income for
the quarter ended September 30, 2001 decreased $0.2 million, or 2.6%, to $7.4
million from $7.6 million for the quarter ended September 30, 2000. Operating
income as a percentage of net revenues increased to 12.3% for the quarter ended
September 30, 2001 from 11.8% for the quarter ended September 30, 2000.

         Interest expense. Interest expense for the quarter ended September 30,
2001 decreased $0.8 million, or 8.8%, to $8.1 million from $8.9 million for the
quarter ended September 30, 2000. While interest rates declined, the effect was
partially offset by a $0.1 million non-cash adjustment to reflect changes in the
fair values of the Company's interest rate swap agreements.

         Net loss. As a result of the foregoing, net loss for the quarter ended
September 30, 2001 decreased $0.1 million to a net loss of $0.7 million as
compared to a net loss of $0.8 million for the quarter ended September 30, 2000.
Net loss as a percentage of net revenues decreased to (1.1%) for the quarter
ended September 30, 2001 from (1.3%) for the quarter ended September 30, 2000.


                                       11

<PAGE>

The following table sets forth the Company's historical net revenues for the
periods indicated:

<TABLE>
<CAPTION>
                                                                                  Nine Months Ended
                                                                           --------------------------------
                                                                           September 30,      September 30,
                                                                                2001               2000
                                                                           -------------   ----------------
                                                                                 (Dollars in millions)
    <S>                                                                    <C>             <C>
    Net revenues:
       Commercial laundry.........................................         $       164.5      $       179.9
       Service parts..............................................                  26.6               26.9
                                                                           -------------      -------------
                                                                           $       191.1      $       206.8
                                                                           =============      =============
</TABLE>


The following table sets forth certain condensed historical financial data for
the Company expressed as a percentage of net revenues for each of the periods
indicated:

<TABLE>
<CAPTION>
                                                                                             Nine Months Ended
                                                                                      ------------------------------
                                                                                      September 30,    September 30,
                                                                                          2001             2000
                                                                                      -------------    -------------
    <S>                                                                               <C>             <C>
    Net revenues................................................................          100.0%           100.0%
    Cost of sales...............................................................           75.0%            73.4%
    Gross profit................................................................           25.0%            26.6%
    Selling, general and administrative expense.................................           11.7%            13.8%
    Nonrecurring costs..........................................................              -              0.2%
    Operating income............................................................           13.3%            12.6%
       Net loss before cumulative effect of accounting change...................           (0.5%)           (0.3%)
</TABLE>


         Net revenues. Net revenues for the nine months ended September 30, 2001
decreased $15.7 million, or 7.6%, to $191.1 million from $206.8 million for the
nine months ended September 30, 2000. This decrease was primarily attributable
to lower commercial laundry revenue of $15.4 million. The decrease in commercial
laundry revenue was due primarily to lower North American equipment revenue of
$10.5 million, and lower international revenue of $3.7 million. The decrease in
North American equipment revenues was primarily due to lower revenues from
laundromats, on-premise laundries, and drycleaners resulting from a general
economic slowdown.

         Gross profit. Gross profit for the nine months ended September 30, 2001
decreased $7.1 million, or 13.0%, to $47.8 million from $54.9 million for the
nine months ended September 30, 2000. This decrease was primarily attributable
to the lower sales volume as discussed above and manufacturing variances which
occurred as a result of efforts to reduce finished goods inventories. Gross
profit as a percentage of net revenues decreased to 25.0% for the nine months
ended September 30, 2001 from 26.6% for the nine months ended September 30,
2000. This 1.6% decrease was primarily attributable to manufacturing volume
inefficiencies related to the lower sales volume and manufacturing
inefficiencies related to lower manufacturing volumes required to reduce
finished goods stocking levels.


                                       12

<PAGE>

         Selling, general and administrative expense. Selling, general and
administrative expenses for the nine months ended September 30, 2001 decreased
$5.9 million, or 20.8%, to $22.5 million from $28.4 million for the nine months
ended September 30, 2000. The decrease in selling, general and administrative
expenses was primarily due to lower sales and marketing expenses of $0.8
million, lower independent development expenses of $1.5 million, a lower loss on
sales of qualified accounts receivable of $1.3 million, and lower one-time
expenses related primarily to the relocation of Madisonville, Kentucky
production lines to Ripon, Wisconsin of $2.1 million. Selling, general and
administrative expenses as a percentage of net revenues decreased to 11.7 % for
the nine months ended September 30, 2001 from 13.8% for the nine months ended
September 30, 2000.

         Nonrecurring costs. There were no nonrecurring costs for the nine
months ended September 30, 2001 as compared to $0.4 million of nonrecurring
costs for the nine months ended September 30, 2000. Nonrecurring costs in 2000
were comprised entirely of employee termination and severance benefits due to
the relocation of Madisonville, Kentucky production lines to Ripon, Wisconsin.

         Operating income. As a result of the foregoing, operating income for
the nine months ended September 30, 2001 decreased $0.8 million, or 3.1%, to
$25.3 million from $26.1 million for the nine months ended September 30, 2000.
Operating income as a percentage of net revenues increased to 13.3% for the nine
months ended September 30, 2001 from 12.6% for the nine months ended September
30, 2000.

         Interest expense. Interest expense for the nine months ended September
30, 2001 decreased $0.9 million, or 3.0%, to $26.3 million from $27.2 million
for the nine months ended September 30, 2000. Reductions resulting from lower
interest rates throughout 2001 and a one-time net interest expense in 2000 of
$1.5 million associated with the Raytheon Arbitration award were offset by $1.6
million of non-cash adjustments to reflect changes in the fair values of the
Company's interest rate swap agreements for the nine months ended September 30,
2001.

         Net loss before cumulative effect of accounting change. As a result of
the foregoing, net loss before cumulative effect of accounting change for the
nine months ended September 30, 2001 increased $0.2 million to a net loss before
cumulative effect of accounting change of $0.9 million as compared to net loss
before cumulative effect of accounting change of $0.7 million for the nine
months ended September 30, 2000. Net loss before cumulative effect of accounting
change as a percentage of net revenues increased to (0.5%) for the nine months
ended September 30, 2001 from (0.3%) for the nine months ended September 30,
2000.

         Cumulative effect of accounting change. Effective April 1, 2001, the
Company adopted the provisions of Emerging Issues Task Force (EITF) Issue No.
99-20 "Recognition of Interest Income and Impairment on Purchased and Retained
Beneficial Interests in Securitized Financial Assets". In accordance with the
impairment provisions of EITF 99-20, upon adoption the Company recognized a $2.0
million non-cash write-down of the Company's retained interests in its
securitization transactions. The impairment was primarily driven by faster
prepayment trends than had been anticipated at the time of sale.

         Net loss. As a result of the foregoing, net loss for the nine months
ended September 30, 2001 increased $2.3 million to a net loss of $3.0 million as
compared to net loss of $0.7 million for the nine months ended September 30,
2000. Net loss as a percentage of net revenues increased to (1.6%) for the nine
months ended September 30, 2001 from (0.3%) for the nine months ended September
30, 2000.


                                       13

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         In May 1998, Alliance Laundry entered into a credit agreement (the
"Senior Credit Facility") with a syndicate of financial institutions (the
"Lenders") for which Lehman Brothers Inc. acted as arranger and Lehman
Commercial Paper Inc. acted as syndication agent. The Senior Credit Facility is
comprised of a term loan facility aggregating $200.0 million (the "Term Loan
Facility") and a $75.0 million revolving credit facility (the "Revolving Credit
Facility"), which was made available in conjunction with the issuance of
Alliance Laundry's senior subordinated notes.

         The Company's principal sources of liquidity are cash flows generated
from operations and borrowings under its $75.0 million Revolving Credit
Facility. The Company's principal uses of liquidity are to meet debt service
requirements, finance the Company's capital expenditures and provide working
capital. The Company expects that capital expenditures in 2001 will not exceed
$7.0 million. The Company expects the ongoing requirements for debt service,
capital expenditures and working capital will be funded by internally generated
cash flow and borrowings under the Revolving Credit Facility.

         As of September 30, 2001, the Company has $330.6 million of combined
indebtedness outstanding, consisting of outstanding debt of $198.8 million under
the Term Loan Facility and $4.0 million under the Revolving Credit Facility,
$110.0 million of senior subordinated notes and $16.3 million of junior
subordinated notes, $0.7 million of borrowings pursuant to a Wisconsin Community
Development Block Grant Agreement, and $0.8 million of borrowings pursuant to a
financing transaction with Alliant Energy - Wisconsin Power & Light Company. The
Company had $56.7 million of its $75.0 million Revolving Credit Facility
available subject to certain limitations under the Senior Credit Facility. After
considering such limitations, the Company could have borrowed up to $9.7 million
at September 30, 2001 in additional indebtedness under the Revolving Credit
Facility.

         The $198.8 million Term Loan Facility amortizes quarterly and is
repayable in the following aggregate annual amounts:

                   Year                                   Amount Due
                   ----                                   ----------
                                                          (Dollars in
                                                           millions)
                   2001..............................    $       0.3
                   2002..............................    $       1.0
                   2003..............................    $      20.5
                   2004..............................    $      98.5
                   2005..............................    $      78.5

         The Term Loan Facility is also subject to mandatory prepayment with the
proceeds of certain debt incurrences, asset sales and a portion of Excess Cash
Flow (as defined in the Senior Credit Facility). The Revolving Credit Facility
will terminate in 2003.

         The Company's Asset Backed Facility provides $250.0 million of
off-balance sheet financing for trade receivables and equipment loans. The
finance programs have been and will continue to be structured in a manner that
qualifies for off-balance sheet treatment in accordance with generally accepted
accounting principles. It is expected that under the Asset Backed Facility, the
Company will continue to act as originator and servicer of the equipment
financing promissory notes and the trade receivables.


                                       14

<PAGE>
         The Company's ability to make scheduled payments of principal of, or to
pay the interest or liquidated damages, if any, on, or to refinance, its
indebtedness, or to fund planned capital expenditures, will depend upon its
future performance, which, in turn, is subject to general economic, financial,
competitive and other factors that are beyond its control. Based upon the
current level of operations and anticipated growth, management believes that
future cash flow from operations, together with available borrowings under the
Revolving Credit Facility, will be adequate to meet the Company's anticipated
requirements for capital expenditures, working capital, interest payments and
scheduled principal payments. There can be no assurance, however, that the
Company's business will continue to generate sufficient cash flow from
operations in the future to service its debt and make necessary capital
expenditures after satisfying certain liabilities arising in the ordinary course
of business. If unable to do so, the Company may be required to refinance all or
a portion of its existing debt, to sell assets or to obtain additional
financing. There can be no assurance that any such refinancing would be
available or that any such sales of assets or additional financing could be
obtained.

Historical

         Cash generated from operations for the nine months ended September 30,
2001 of $7.7 million was principally derived from changes in working capital
which were offset by lower sales of accounts receivable under the Asset Backed
Facility, and an increase in ineligible loans under the Asset Backed Facility.
The working capital investment in accounts receivable at September 30, 2001 of
$17.1 million increased $6.5 million as compared to the balance of $10.6 million
at December 31, 2000, which was primarily attributable to selling less accounts
receivable through Alliance Laundry Receivable Warehouse ("ALRW"), a
special-purpose single member limited liability company. The investment in notes
receivable at September 30, 2001 of $22.5 million increased $12.3 million as
compared to the balance of $10.2 million at December 31, 2000, which was
primarily attributable to the retained interests on new loans sold through ALRW,
and the increase in ineligible loans under the Asset Backed Facility. The
investment in inventory at September 30, 2001 of $31.8 million decreased $5.7
million as compared to the balance of $37.5 million at December 31, 2000.
Accounts payable at September 30, 2001 of $14.6 million increased $5.8 million
as compared to the balance of $8.8 million at December 31, 2000.

         Net cash provided by operating activities for the nine months ended
September 30, 2001 of $7.7 million increased by $2.8 million as compared to the
nine months ended September 30, 2000. This increase was primarily due to lower
net cash used in changes in assets and liabilities of $1.2 million, and an
increase in net cash provided by operations (net loss before cumulative effect
of accounting change adjusted for depreciation, amortization, non-cash interest
and gains on sale of property, plant and equipment) of $1.6 million for the nine
months ended September 30, 2001 as compared to the nine months ended September
30, 2000. The net cash impact from changes in assets and liabilities for the
nine months ended September 30, 2001 of $1.2 million was largely due to
decreased working capital investments in inventory and an increase in accounts
payable, partially offset by lower sales of accounts receivable under the Asset
Backed Facility and an increase in ineligible loans under the Asset Backed
Facility.

Capital Expenditures

         The Company's capital expenditures for the nine months ended September
30, 2001 and September 30, 2000 were $4.7 million and $3.6 million,
respectively. Capital spending in 2001 was principally oriented toward reducing
manufacturing costs and transitioning press and finishing equipment production
to the Company's Marianna, Florida manufacturing facility (see Note 5), while
spending in 2000 was principally oriented toward reducing manufacturing costs
and transitioning

                                       15

<PAGE>
tumbler production from the Company's Madisonville, Kentucky manufacturing
facility to Ripon, Wisconsin.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

         In July 2001, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards (SFAS) No. 141, "Business Combinations" and
No. 142, "Goodwill and Other Intangible Assets." The statements eliminate the
pooling-of-interests method of accounting for business combinations and require
that goodwill and certain intangible assets not be amortized. Instead, these
assets will be reviewed for impairment annually with any related losses
recognized in earnings when incurred. SFAS 141 is effective for the Company July
1, 2001. SFAS 142 will be effective for the Company January 1, 2002. The Company
is currently evaluating the impact of SFAS 142.

         In August 2001, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets." This statement modifies and
expands the financial accounting and reporting for the impairment or disposal of
long-lived assets other than goodwill, which is specifically addressed by SFAS
No. 142. This statement supersedes SFAS No. 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," and the
accounting and reporting provisions for the disposal of a segment of a business
of APB Opinion No. 30, "Reporting the Results of Operations - Reporting the
Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and
Infrequently Occurring Events and Transactions." SFAS No. 144 is effective for
the Company January 1, 2002. The effects upon adoption are not expected to have
a material impact upon the Company.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         The Company is potentially exposed to market risk associated with
changes in interest and foreign exchange rates. From time to time the Company
may enter into derivative financial instruments to hedge its interest rate
exposures and to hedge exchange rate fluctuations between United States dollars
and foreign currencies. An instrument will be treated as a hedge if it is
effective in offsetting the impact of volatility in the Company's underlying
exposures. The Company does not enter into derivatives for speculative purposes.
There have been no material changes in the Company's market risk exposures as
compared to those discussed in the Company's Annual Report on Form 10-K (file
no. 333-56857).

FORWARD-LOOKING STATEMENTS

         With the exception of the reported actual results, the information
presented herein contains predictions, estimates or other forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Act of 1934, as amended, including
items specifically discussed in the "Note 3 - Commitments and Contingencies"
section of this document. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause actual results,
performance or achievements of the Company to differ materially from those
expressed or implied by such forward-looking statements. Although the Company
believes that its plans, intentions and expectations reflected in such
forward-looking statements are based on reasonable assumptions, it can give no
assurance that such plans, intentions, expectations, objectives or

                                       16

<PAGE>

goals will be achieved. Important factors that could cause actual results to
differ materially from those included in forward-looking statements include:
impact of competition; continued sales to key customers; possible fluctuations
in the cost of raw materials and components; possible fluctuations in currency
exchange rates, which affect the competitiveness of the Company's products
abroad; market acceptance of new and enhanced versions of the Company's
products; the impact of substantial leverage and debt service on the Company and
other risks listed from time to time in the Company's reports, including but not
limited to the Company's Annual Report on Form 10-K (file no. 333-56857).

                                       17

<PAGE>

PART II OTHER INFORMATION

Item 1.  Legal Proceedings.

         Legal actions relating to Lopez Arbitration are described in Footnote 3
to the Financial Statements in Part I hereto and are incorporated by reference
into Part II.

Item 2.  Changes in Securities.  None.

Item 3.  Defaults upon Senior Securities.  None.

Item 4.  Submission of Matters to a Vote of Security Holders.  None.

Item 5.  Other Information.  None.

Item 6.  Exhibits and Reports on Form 8-K

         (a)    List of Exhibits.  None.

         (b)    Reports on Form 8-K.  None.

                                       18

<PAGE>
                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
Alliance Laundry Systems LLC has duly caused this quarterly report to be signed
on its behalf by the undersigned, thereto duly authorized, in the city of Ripon,
state of Wisconsin, on the 31st day of October 2001.

<TABLE>
<CAPTION>
                Signature                               Title                                            Date
                ---------                               -----                                            ----
<S>                                         <C>                                                   <C>
          /s/ Thomas L'Esperance            Chairman and CEO                                             10-31-01
-------------------------------------------                                                       -----------------------
            Thomas L'Esperance

           /s/ Bruce P. Rounds              Vice President and Chief Financial Officer                   10-31-01
-------------------------------------------                                                       -----------------------
             Bruce P. Rounds
</TABLE>

         Pursuant to the requirements of the Securities Exchange Act of 1934,
Alliance Laundry Corp. has duly caused this quarterly report to be signed on its
behalf by the undersigned, thereto duly authorized, in the city of Ripon, state
of Wisconsin, on the 31st day of October 2001.

<TABLE>
<CAPTION>
                Signature                               Title                                            Date
                ---------                               -----                                            ----
<S>                                         <C>                                                   <C>
          /s/ Thomas L'Esperance            Chairman and CEO                                             10-31-01
-------------------------------------------                                                       -----------------------
            Thomas L'Esperance

           /s/ Bruce P. Rounds              Vice President and Chief Financial Officer                   10-31-01
-------------------------------------------                                                       -----------------------
             Bruce P. Rounds
</TABLE>

         Pursuant to the requirements of the Securities Exchange Act of 1934,
Alliance Laundry Holdings LLC has duly caused this quarterly report to be signed
on its behalf by the undersigned, thereto duly authorized, in the city of Ripon,
state of Wisconsin, on the 31st day of October 2001.

<TABLE>
<CAPTION>
                Signature                               Title                                            Date
                ---------                               -----                                            ----

<S>                                         <C>                                                   <C>
          /s/ Thomas L'Esperance            Chairman and CEO                                             10-31-01
-------------------------------------------                                                       -----------------------
            Thomas L'Esperance

           /s/ Bruce P. Rounds              Vice President and Chief Financial Officer                   10-31-01
-------------------------------------------                                                       -----------------------
             Bruce P. Rounds
</TABLE>

                                       19