<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
 
                          WASHINGTON, D.C. 20549-1004
 
                                   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 JUNE 30, 1998
                                       OR
 
  / /    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934
 
                            ENVIROTEST SYSTEMS CORP.
 
<TABLE>
<S>                              <C>                              <C>
           DELAWARE                          1-13241                        06-0914220
-------------------------------  -------------------------------  -------------------------------
 (State or other jurisdiction              (Commission                   (I.R.S. Employer
       of incorporation)                  File Number)                Identification Number)
 
                                  ENVIROTEST TECHNOLOGIES, INC.
                     (Exact name of registrant as specified in its charter)
 
           DELAWARE                                                         36-2680300
-------------------------------                                   -------------------------------
 (State or other jurisdiction                                     (I.R.S. Employer Identification
      of incorporation or                                                     Number)
         organization)
</TABLE>
 
                                246 SOBRANTE WAY
                            SUNNYVALE, CA 94086-4807
  (Address of principal executive offices, including zip code, of registrants)
 
                                 (408) 774-6300
              (Registrants' telephone number, including area code)
 
    Indicate by check mark whether the registrants (1) have 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
registrants were required to file such reports), and (2) have been subject to
such filing requirements for the past 90 days. Yes /X/  No / /
 
    Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
 
<TABLE>
<CAPTION>
                                      OUTSTANDING AT
       CLASS OF COMMON STOCK           JUNE 30, 1998
------------------------------------  ---------------
<S>                                   <C>
Class A Common Stock, $0.01 par             8,842,248
 value                                         shares
Class B Common Stock, $0.01 par             1,249,749
 value                                         shares
Class C Common Stock, $0.01 par             2,026,111
 value                                         shares
</TABLE>
 
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
                   ENVIROTEST SYSTEMS CORP. AND SUBSIDIARIES
 
                                     INDEX
 
<TABLE>
<S>        <C>                                                                        <C>
PART I. FINANCIAL INFORMATION                                                         PAGE NO.
Item 1.    Financial Statements:
 
           Condensed Consolidated Balance Sheets:
           June 30, 1998 and September 30, 1997.....................................      3
 
           Condensed Consolidated Statements of Operations:
           three and nine months ended June 30, 1998 and 1997.......................      4
 
           Condensed Consolidated Statements of Cash Flows:
           nine months ended June 30, 1998 and 1997.................................      5
 
           Notes to Condensed Consolidated 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........................................................     14
 
Item 6.    Exhibits and Reports on Form 8-K.........................................     16
 
SIGNATURES..........................................................................     17
 
EXHIBIT INDEX.......................................................................     18
</TABLE>
 
                                       2
<PAGE>
PART I. FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
                   ENVIROTEST SYSTEMS CORP. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                             (AMOUNTS IN THOUSANDS)
 
                                       ASSETS
 
<TABLE>
<CAPTION>
                                                                           SEPTEMBER
                                                                              30,
                                                                              1997
                                                              JUNE 30,    ------------
                                                                1998
                                                            ------------
                                                            (UNAUDITED)
<S>                                                         <C>           <C>
Current assets:
  Cash and cash equivalents...............................  $    32,702   $    18,685
  Available-for-sale securities, net......................       28,127        40,955
  Contract receivables, net...............................       11,597        11,789
  Prepaid and other current assets........................        7,145         5,911
                                                            ------------  ------------
      Total current assets................................       79,571        77,340
 
Restricted cash...........................................       19,122        19,567
Property, plant, and equipment, net.......................      203,056       188,342
Assets held under capital lease, net......................       43,587        44,564
Assets held for sale, net.................................       11,868        21,482
Other assets..............................................       25,665        28,438
                                                            ------------  ------------
      Total assets........................................  $   382,869   $   379,733
                                                            ------------  ------------
                                                            ------------  ------------
</TABLE>
 
                     LIABILITIES AND STOCKHOLDERS' DEFICIT
 
<TABLE>
<S>                                                         <C>           <C>
Current liabilities:......................................
  Accounts payable........................................  $     2,780   $     3,697
  Accrued expenses and other current liabilities..........       35,124        23,575
  Current portion of long-term debt and capital lease
    obligations...........................................        8,875        10,184
  Income taxes payable....................................           75           338
                                                            ------------  ------------
      Total current liabilities...........................       46,854        37,794
 
Senior debt, net..........................................      274,331       274,531
Long-term debt............................................       22,715        33,175
Other long-term liabilities and capital lease
  obligations.............................................       53,678        58,609
                                                            ------------  ------------
      Total liabilities                                         397,578       404,109
                                                            ------------  ------------
Stockholders' deficit:
  Common stock............................................          166           165
  Additional paid-in capital..............................       60,173        60,140
  Treasury stock, at cost.................................      (29,003 )     (29,003 )
  Cumulative currency translation adjustment..............         (137 )          43
  Unrealized loss on available-for-sale securities........           (3 )          (8 )
  Accumulated deficit.....................................      (45,905 )     (55,713 )
                                                            ------------  ------------
      Total stockholders' deficit.........................      (14,709 )     (24,376 )
                                                            ------------  ------------
      Total liabilities and stockholders' deficit.........  $   382,869   $   379,733
                                                            ------------  ------------
                                                            ------------  ------------
</TABLE>
 
   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.
 
                                       3
<PAGE>
                   ENVIROTEST SYSTEMS CORP. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
 
<TABLE>
<CAPTION>
                                                                      THREE MONTHS ENDED   NINE MONTHS ENDED JUNE
                                                                           JUNE 30,                 30,
                                                                     --------------------  ----------------------
                                                                       1998       1997        1998        1997
                                                                     ---------  ---------  ----------  ----------
                                                                         (UNAUDITED)            (UNAUDITED)
<S>                                                                  <C>        <C>        <C>         <C>
Contract revenue...................................................  $  45,137  $  36,909  $  122,706  $  101,803
Costs of revenue...................................................     25,454     23,619      74,612      74,048
                                                                     ---------  ---------  ----------  ----------
  Gross profit.....................................................     19,683     13,290      48,094      27,755
 
Operating costs and expenses:
  Selling, general and administrative..............................      5,572      4,688      14,321      13,967
  Amortization.....................................................        583        520       1,774       1,861
  Gain on Pennsylvania settlement..................................     --         (3,950)     --          (3,950)
                                                                     ---------  ---------  ----------  ----------
  Income from operations                                                13,528     12,032      31,999      15,877
 
Other expense (income):
  Interest expense.................................................      8,478     10,262      25,707      30,104
  Interest income..................................................     (1,235)    (2,381)     (3,776)     (6,571)
  Other............................................................         12         18          60         112
                                                                     ---------  ---------  ----------  ----------
 
Income (loss) before income taxes..................................      6,273      4,133      10,008      (7,768)
  Income tax.......................................................        200     --             200      --
                                                                     ---------  ---------  ----------  ----------
 
Net Income (loss)..................................................  $   6,073  $   4,133  $    9,808  $   (7,768)
                                                                     ---------  ---------  ----------  ----------
                                                                     ---------  ---------  ----------  ----------
 
Net Income (loss) per share, basic.................................  $    0.50  $    0.25  $     0.81  $    (0.47)
                                                                     ---------  ---------  ----------  ----------
Net Income (loss) per share, diluted...............................  $    0.40  $    0.24  $     0.67  $    (0.47)
                                                                     ---------  ---------  ----------  ----------
 
Weighted average common shares outstanding.........................     12,116     16,620      12,113      16,620
                                                                     ---------  ---------  ----------  ----------
                                                                     ---------  ---------  ----------  ----------
 
Weighted average common shares outstanding and common equivalent
 shares outstanding................................................     15,216     17,241      14,542      16,620
                                                                     ---------  ---------  ----------  ----------
                                                                     ---------  ---------  ----------  ----------
</TABLE>
 
   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.
 
                                       4
<PAGE>
                   ENVIROTEST SYSTEMS CORP. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (AMOUNTS IN THOUSANDS)
 
<TABLE>
<CAPTION>
                                                                                            NINE MONTHS ENDED JUNE
                                                                                                     30,
                                                                                            ----------------------
                                                                                               1998        1997
                                                                                            -----------  ---------
                                                                                                 (UNAUDITED)
<S>                                                                                         <C>          <C>
Cash flows from operating activities:.....................................................  $    38,239  $  10,836
                                                                                            -----------  ---------
 
Cash flows from investing activities:
      Purchases of available-for-sale securities..........................................     (155,887)   (52,466)
      Maturities of available-for-sale securities.........................................      168,710      7,991
      Unrealized gains on available-for-sale securities...................................            5          3
      Proceeds from sales of property, plant and equipment................................        9,614      8,170
      Purchases of property, plant and equipment..........................................      (30,866)    (8,291)
                                                                                            -----------  ---------
Net cash used in investing activities.....................................................       (8,424)   (44,593)
                                                                                            -----------  ---------
Cash flows from financing activities:
      Proceeds from sale of Pennsylvania receivable.......................................      --          79,405
      Repayment of long term debt and capital leases......................................      (16,169)    (6,350)
      Capitalization of loan fees.........................................................      --            (208)
      Decrease in restricted cash.........................................................          445      1,432
      Other...............................................................................      --               3
                                                                                            -----------  ---------
Net cash provided by (used in) financing activities.......................................      (15,724)    74,282
                                                                                            -----------  ---------
Effect of exchange rate on cash...........................................................          (74)         5
                                                                                            -----------  ---------
Net increase in cash and cash equivalents.................................................       14,017     40,530
Cash and cash equivalents, beginning of period............................................       18,685     53,104
                                                                                            -----------  ---------
Cash and cash equivalents, end of period..................................................  $    32,702  $  93,634
                                                                                            -----------  ---------
                                                                                            -----------  ---------
</TABLE>
 
   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.
 
                                       5
<PAGE>
                   ENVIROTEST SYSTEMS CORP. AND SUBSIDIARIES
 
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
1. BASIS OF PRESENTATION
 
    The condensed consolidated financial statements included herein have been
prepared by Envirotest Systems Corp. (the "Company"), without audit, pursuant to
the rules and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.
 
    The accompanying condensed consolidated financial statements should be read
in conjunction with the Company's audited consolidated financial statements and
related footnotes included in the Company's Annual Report on Form 10-K for the
year ended September 30, 1997, filed with the Securities and Exchange
Commission.
 
    Certain amounts in the consolidated financial statements have been
reclassified to conform with the current period's presentation. The
reclassification had no impact on previously reported net income (loss) or
stockholders' deficit.
 
    Operating results for the interim periods shown in this report are not
necessarily indicative of the results to be expected for any other interim
period or the full fiscal year.
 
2. AVAILABLE-FOR-SALE SECURITIES
 
    Available-for-sale securities primarily consist of corporate commercial
paper and certificates of deposit with original maturities beyond three months
and less than twelve months. These investments are carried at an amortized cost
that approximates fair value.
 
3. NET INCOME (LOSS) PER SHARE
 
    Basic EPS is computed as net income (loss) divided by the weighted average
number of common shares outstanding for the period. Diluted EPS reflects the
potential dilution that could occur from common shares issuable through stock
options, warrants and other convertible securities. Common equivalent shares are
excluded from the computation of net loss per share if their effect is
anti-dilutive.
 
                                       6
<PAGE>
                   ENVIROTEST SYSTEMS CORP. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
3. NET INCOME (LOSS) PER SHARE (CONTINUED)
    The following is a reconciliation of the numerator- net income/(loss) and
the denominator- number of shares, used in the basic and diluted EPS calculation
(amounts in thousands except per share data):
 
<TABLE>
<CAPTION>
                                                                         THREE MONTHS ENDED    NINE MONTHS ENDED
                                                                              JUNE 30,              JUNE 30,
                                                                        --------------------  --------------------
                                                                          1998       1997       1998       1997
                                                                        ---------  ---------  ---------  ---------
<S>                                                                     <C>        <C>        <C>        <C>
Basic:
Net Income (loss).....................................................  $   6,073  $   4,133  $   9,808  $  (7,768)
                                                                        ---------  ---------  ---------  ---------
                                                                        ---------  ---------  ---------  ---------
Weighted average common shares outstanding............................     12,116     16,620     12,113     16,620
Basic EPS.............................................................  $    0.50  $    0.25  $    0.81  $   (0.47)
                                                                        ---------  ---------  ---------  ---------
                                                                        ---------  ---------  ---------  ---------
 
Diluted:
Weighted average common shares outstanding............................     12,116     16,620     12,113     16,620
                                                                        ---------  ---------  ---------  ---------
Stock option common equivalents.......................................      3,100        621      2,429     --
Weighted average common shares outstanding and common equivalent
 shares outstanding...................................................     15,216     17,241     14,542     16,620
                                                                        ---------  ---------  ---------  ---------
                                                                        ---------  ---------  ---------  ---------
Diluted EPS...........................................................  $    0.40  $    0.24  $    0.67  $   (0.47)
                                                                        ---------  ---------  ---------  ---------
                                                                        ---------  ---------  ---------  ---------
</TABLE>
 
    Common equivalent shares of 642,000 for the nine months ended June 30, 1997
were excluded from the shares used to calculate diluted EPS as their effect is
anti-dilutive.
 
    In September 1997, the Company purchased 4,388,091 shares of its Class A
Common Stock, par value $0.01 per share, at a price of $4.50 per share pursuant
to its "Dutch" auction tender offer.
 
4. LEGAL PROCEEDINGS
 
    On May 8, 1998, the Company and the State of Connecticut entered into an
agreement (the "Agreement") settling the State's claims against the Company,
except for certain penalties unrelated to the settled claims which the parties
are to negotiate, and the Company's claims against the State. The Agreement
modifies the terms of the Company's existing vehicle inspection and safety
inspection contracts with the State to provide among other things, for the
Company to add five emissions inspection lanes to its existing network in lieu
of constructing an additional station as required under the existing contracts.
The Company previously disclosed that it had filed a demand for arbitration in
response to a decision by the Commissioner of the Department of Motor Vehicles
in February 1996 that the Company realized cost savings of $2.4 million, plus
interest until paid, in connection with certain changes under the Company's
contract to perform vehicle emissions testing services.
 
    On October 8, 1997, Ganzcorp Investments, Inc., d/b/a Mustang Dynamometer,
filed suit against Envirotest in U.S. District Court for the Northern District
of Ohio alleging breach of contract in connection with Envirotest's termination
of its contract to supply the Company with chassis dynamometers and alleging
damages in excess of $10 million. The Company filed an answer and counterclaim
on October 28, 1997, denying the material allegations of the complaint,
asserting defenses based on, among other things, the clause in the contract
permitting termination for convenience by Envirotest and asserting counterclaims
in the amount of $7.9 million for breaches of warranty and contract by Mustang.
On February 28, 1998, the parties entered into a Mediation Agreement providing
for, among other things, a mediation conference on July 28, 1998. While the
parties continue to discuss settlement of the matter, the
 
                                       7
<PAGE>
                   ENVIROTEST SYSTEMS CORP. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
4. LEGAL PROCEEDINGS (CONTINUED)
Company is unable to predict the outcome of these discussions. The Company
intends to vigorously defend against Ganzcorp's claims and to pursue
Envirotest's counterclaims. The Company believes that any judgment against the
Company will not have a material adverse effect on its financial position and
results of operations.
 
    On July 31, 1998, the Company received approximately $12.7 million from the
Commonwealth of Pennsylvania in payment of the final installment due to the
Company under the Settlement Agreement, dated December 15, 1995 (the "Settlement
Agreement"), between the Company and the Commonwealth. The Settlement Agreement
required the Company to utilize its best efforts to dispose of the assets it
acquired to perform vehicle emissions testing services in Pennsylvania. Under
the terms of the Settlement Agreement, if the net proceeds received by the
Company was less than $55 million, the Commonwealth was required to pay the
Company fifty percent of the difference up to $11 million, plus interest at 6%
from December 15, 1995. Each of the Company and Commonwealth has now satisfied
all obligations due to the other under the Settlement Agreement.
 
    R.W. Granger & Sons filed a Demand for Arbitration in the East Hartford,
Connecticut, office of the American Arbitration Association in September 1996
alleging breach of contract and failure to pay amounts due Granger in connection
with the construction of certain of the Company's testing facilities in the
State of Connecticut. On December 29, 1997, Granger filed a complaint in State
Superior Court in the Judicial District of Hartford/New Britain at New Britain
alleging that the Company's failure to pay amounts due to Granger is an unfair
trade practice under the Connecticut Unfair Trade Practices Act. The Arbitrators
awarded Granger approximately $495,000, including the costs of the Arbitration,
in a decision rendered on August 12, 1998. Granger was claiming damages of
approximately $2.0 million in its Demand for Arbitration. The Company intends to
vigorously defend against Granger's remaining claim in State Superior Court. The
Company believes that any judgment against the Company with respect to the
remaining claim will not have a material adverse effect on its financial
position and results of operations.
 
    On November 22, 1997, the Denver District Court granted the Company's Motion
to Dismiss a class action complaint filed by Timothy Dore on behalf of all
persons who paid to have a vehicle tested in the Company's metro Denver
facilities from January 2, 1995 to present. The complaint alleged breach of
contractual obligation to the class and the negligent performance of emissions
testing under the Company's contract with the State of Colorado. On January 6,
1998, Dore filed an appeal in the State of Colorado Court of Appeals from the
trial court's order of dismissal. On June 1, 1998 Dore filed a motion to dismiss
the appeal and on June 15, 1998 the State of Colorado Court of Appeals granted
the motion to dismiss the appeal with prejudice. On June 1, 1998, the attorneys
for Dore filed a new class action complaint in the Boulder District Court. The
new complaint has replaced Timothy Dore with two new representative Plaintiffs,
Jay Sherrit and Arthur D. Gonzales, and the new complaint is brought on behalf
of virtually the identical class. Although the new complaint purports to state
new causes of action, it alleges claims for breach of contract and negligence
which are similar to Dore's class action complaint. On June 23, 1998 the Company
filed a Motion to Change Venue to the Denver District Court. The Company intends
to vigorously defend against Plaintiff's claims. The Company believes that any
judgment obtained against the Company will not have a material adverse effect on
its financial position and results of operations.
 
    In addition to the above, the Company is a party to various other legal
proceedings and claims in the ordinary course of business. Although the claims
cannot be estimated, in the opinion of management the resolution of these
matters will not have a material adverse effect on the Company's consolidated
financial position and results of operations.
 
                                       8
<PAGE>
ITEM 2.
 
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
GENERAL
 
    Envirotest is the leading provider of vehicle emissions inspection and
maintenance programs in the $1.05 billion U.S. vehicle emissions testing market.
The market has traditionally consisted of two types of programs: centralized
test-only programs where emissions tests are conducted by private contractors or
government agencies, and decentralized programs where tests are performed by gas
stations and garages. The Company is the most experienced operator in the $250
million centralized market segment, where it has tested more than 150 million
vehicles since its inception. The Company is implementing a strategy to
penetrate the $800 million decentralized market segment through (i) strategic
alliances with retail gasoline distribution companies and other companies with
strong brand identity, and (ii) commercialization of its proprietary remote
sensing technology, which can unobtrusively measure the emissions of up to 4,000
moving vehicles per hour. The Company has also established a presence, in
conjunction with strategic local partners, to participate in the expanding
international market for vehicle testing services.
 
    The Company conducts its current operations directly and through its
principal wholly owned subsidiaries, Envirotest Technologies, Inc., Envirotest
Illinois, Inc., Envirotest Wisconsin, Inc. and Envirotest Systems Corp., a
Washington corporation. The Company's British Columbia, Canada operations are
conducted through a British Columbia partnership, Envirotest Canada, which is
wholly-owned by the Company (through its subsidiaries).
 
    Certain sections of this Form 10-Q, including "Management's Discussion and
Analysis of Financial Condition and Results of Operations", contain various
forward looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, which represent the Company's expectations or beliefs
concerning future events. The Company cautions that these statements are further
qualified by important factors that could cause actual results to differ
materially from those in the forward looking statements. Such factors include,
without limitation, general economic conditions, pending legislation and the
cyclical nature of the vehicle emission testing industry. The forward looking
statements include, without limitation, the amounts of reserves recognized, the
amount of revenue that will be generated under a contract, the total capital
expenditure requirement of a program, statements regarding the commencement of
operations for a particular test site or of a particular program, the number of
annual tests, the types of I/M testing programs to be adopted by states,
regulatory and market changes, the growth in markets in which the Company
operates, the areas of potential growth that the Company has identified, the
value of contracts, renewals of contracts, amount spent in enhancements and
other maintenance capital expenditures, expected realizations of backlog, the
success of the remote sensing technology and its utilization in the future,
ultimate outcome of pending litigation and the Company's success in foreign
jurisdictions.
 
RECENT DEVELOPMENTS
 
    On November 18, 1997, the Company entered into an agreement with the City of
New York to conduct a pilot testing program using its remote sensing technology
in New York City. The three-week program was conducted during May 1998 and
gathered emissions data on vehicles entering the city.
 
    On December 30, 1997 and January 23, 1998, the Company entered into
agreements for the lease of eight remote sensing units in Taiwan. The agreements
provide for four units each to be leased to two Taiwanese companies for the
purpose of collecting fleet emissions data under their contracts with the
Taiwanese government. The data will be used to determine the technology's most
appropriate role in future pollution abatement programs in the cities of Taipei
and Kaohsiung and their surrounding areas.
 
                                       9
<PAGE>
The value of the six-month leases and related engineering services provided by
the Company totaled $850,000 in revenues.
 
    On April 13, 1998, the Company entered into an agreement with the Atlantic
Richfield Company ("ARCO") to operate up to 80 test-only emissions stations in
the Southern California counties of Los Angeles, Orange, Riverside, San
Bernardino, San Diego and Ventura. Envirotest will operate the stations under
ARCO's "SMOGPROS Test-Only" trademark. The Company expects to open the initial
40-station network in ten-station increments. The first stations opened in July
1998. Additional increments of ten stations are expected to open every 60-90
days thereafter. The agreement has an initial term of ten years and an option
for Envirotest to extend for an additional five years.
 
    On April 22, 1998, the Company entered into an agreement with the State of
Minnesota to extend its contract with the State for one year to June 30, 1999.
The Company conducts approximately one million tests each year in Minnesota, and
generated revenue of approximately $7.0 million in fiscal 1997.
 
    On May 1, 1998, the Company exercised its right to extend its contracts with
the State of Tennessee and the Metropolitan Government of Nashville and Davidson
County to June 30, 2001. The Company performs approximately 730,000 paid tests
each year in Tennessee, and generated revenue of approximately $3.6 million in
fiscal 1997.
 
    On June 18, 1998, the Company signed a contract with the State of Kentucky
to conduct centralized emissions testing in three Northern counties following a
competitive procurement. It is expected that 140,000 tests per year will be
performed generating $23 million over the operational term of the contract that
begins in June 1999 and ends in June 2008. The State has advised the Company
that one of the participants in the procurement has filed a protest. Until the
protest is resolved, the Company will not make any significant expenditures
toward the program. The Company is not able to predict the outcome of the
protest.
 
    On July 2, 1998, the Company entered into a Sponsorship Agreement with
WorldCom Technologies, Inc. ("WorldCom") pursuant to which the Company intends
to advertise a long distance telephone program offered by WorldCom in certain of
the Company's vehicle emissions testing facilities. WorldCom will rebate the
vehicle emissions test fees paid by eligible motorists who sign up for WorldCom
services. The Company is to receive a percentage of the revenue paid to
WorldCom.
 
RESULTS OF OPERATIONS
 
    Contract revenues increased to $45.1 million in fiscal third quarter 1998
from $36.9 million in fiscal third quarter 1997, an increase of $8.2 million or
22.3%. For the nine months ended June 30, 1998, contract revenues were $122.7
million, an increase of $20.9 million, or 20.5%, over contract revenues of
$101.8 million for the corresponding period in fiscal 1997. The increase in
contract revenues in fiscal third quarter 1998 as compared to fiscal third
quarter 1997 was attributable to several factors including the extended contract
in Illinois, increased paid test volume, and contractual fee increases.
 
    The increase in contract revenues of $20.9 million for the nine months ended
June 30, 1998 over the same period in the prior fiscal year resulted primarily
from the factors discussed above and new emissions and safety contracts in
Indiana and Connecticut, respectively.
 
    Gross profit increased to $19.7 million in fiscal third quarter 1998 from
$13.3 million in fiscal third quarter 1997, an increase of $6.4 million, or
48.1%. As a percentage of contract revenues, gross profit increased to 43.6% in
fiscal third quarter 1998 from 36.0% in fiscal third quarter 1997, an absolute
increase of 7.6%. These increases were primarily attributable to increased
revenues and continued improvements in operational efficiencies.
 
    For the nine months ended June 30, 1998, gross profit increased to $48.1
million from $27.8 million for the corresponding period in fiscal 1997, an
increase of $20.3 million or 73.3%. As a percentage of
 
                                       10
<PAGE>
contract revenues, gross profit increased to 39.2% from 27.3% in the
corresponding period in fiscal 1997, an absolute increase of 11.9%. These
increases were attributable to the same factors as for the fiscal third quarter
discussed above, and the reduction in the deferred charge amortization.
 
    Selling, general and administrative ("SG&A") expenses increased to $5.6
million in fiscal third quarter 1998 from $4.7 million in fiscal third quarter
1997, an increase of $.9 million or 18.9%. This increase was primarily
attributable to the Company's review of strategic alternatives to enhance its
business potential and shareholder value. As a percentage of contract revenues,
SG&A expenses decreased to 12.3% in fiscal third quarter 1998 from 12.7% in
fiscal third quarter 1997, an absolute decrease of 0.4%.
 
    For the nine months ended June 30, 1998, SG&A increased to $14.3 million
from $14.0 million for the corresponding period in fiscal 1997, an increase of
$.3 million or 2.5%. As a percentage of contract revenues, SG&A expenses
decreased to 11.7% for the nine months ended June 30, 1998 from 13.7% for the
corresponding period in 1997, an absolute decrease of 2.0%.
 
    Income from operations increased to $13.5 million in fiscal third quarter
1998 from $12.0 million in fiscal third quarter 1997, an increase of $1.5
million. Income from operations as a percentage of contract revenues decreased
to 30.0% in fiscal third quarter 1998 from 32.6% in fiscal third quarter 1997,
an absolute decrease of 2.6%. For the nine months ended June 30, 1998 income
from operations increased to $32.0 million from $15.9 million for the
corresponding period in fiscal 1997. Income from operations as a percentage of
contract revenues increased to 26.1% in the nine months ended June 30, 1998 from
15.6% in the nine months ended June 30, 1997, an absolute increase of 10.5%. The
increase for the third fiscal quarter 1998 and nine months ended June 30, 1998
is primarily attributable to increases in revenue and improvements in gross
profit margins.
 
    Interest expense decreased to $8.5 million in fiscal third quarter 1998 from
$10.3 million in fiscal third quarter 1997, a decrease of $1.8 million. For the
nine months ended June 30, 1998, interest expense decreased to $25.7 million
from $30.1 million in the corresponding period of the prior year, a decrease of
$4.4 million. This decrease in interest expense primarily resulted from the
repurchase of $50 million aggregate principal amount of the Company's 9 1/8%
Senior Notes completed in September 1997 and prepayment of debt associated with
a project financing.
 
    Interest income decreased to $1.2 million in fiscal third quarter 1998 from
$2.4 million in fiscal third quarter of 1997, a decrease of $1.2 million. For
the nine months ended June 30, 1998, interest income decreased to $3.8 million
compared to $6.6 million in the corresponding period of the prior year, a
decrease of $2.8 million. The decrease in interest income was primarily
attributable to the lower levels of interest bearing investments resulting from
the application of cash in connection with the Company's debt repurchase and
stock buyback for $79.0 million completed in September 1997.
 
    Provision for income taxes increased to $0.2 million in fiscal third quarter
1998 from $0.0 million in fiscal third quarter 1997. The increase is
attributable to federal and state alternative minimum taxes in the fiscal third
quarter 1998. The tax provision for the nine months ended June 30, 1998 was $0.2
million, an effective tax rate of 2%. The effective tax rate is less than the
federal statutory tax rate due to the utilization of net operating losses. There
was no income tax credit on the pretax loss for the fiscal third quarter 1997
and the nine months ended June 30, 1997 as a result of recording a valuation
allowance to fully reserve the net deferred tax asset.
 
    Net income was $6.1 million in fiscal third quarter 1998 compared to a net
income of $4.1 million in fiscal third quarter 1997, an increase of $2.0
million. For the nine months ended June 30, 1998, net income was $9.8 million
compared to a net loss of $7.8 million for the corresponding period in fiscal
1997, an increase of $17.6 million.
 
                                       11
<PAGE>
LIQUIDITY, CAPITAL RESOURCES AND COMMITMENTS
 
    Cash and cash equivalents, available-for-sale securities and restricted cash
increased to $80.0 million at June 30, 1998 from $79.2 million at September 30,
1997. The increase of $0.8 million was primarily a result of approximately $38.2
million in cash provided by operations, offset by the repayment of debt
obligations and capital lease payments of $16.2 million, included in cash used
in financing activities, and construction progress payments of $21.2 million,
net of assets sales of $9.6 million, included in cash used in investing
activities.
 
    The Company's primary uses of cash are the funding of the Company's capital
expenditure requirements, payments on capital and operating leases, principal
and interest payments, and other working capital needs. The Company's capital
and operating leases currently require minimum lease payments of approximately
$15.0 million in fiscal year 1998, decreasing to approximately $12.0 million in
the year 2000 and further decreasing thereafter as certain leases are scheduled
to expire.
 
    The Company's capital expenditures include maintenance capital expenditures
for existing facilities, and development and construction expenditures for new
emissions facilities. The Company's development and construction capital
expenditures are dependent on the number of contracts it is awarded, and are
only incurred after the contract has been signed. After signing a contract, the
Company may incur significant development and construction expenditures, which
the Company expects to finance with existing cash resources, internally
generated funds, additional borrowings and alternative financing sources,
including leasing alternatives. It generally takes one to two years after a
contract has been signed for a program to begin operations and generate
revenues, depending on the size of the program.
 
    The Company's principal commitments at June 30, 1998 consist of capital
expenditure requirements to complete the implementation of the Illinois program
estimated at $3.4 million, net of the $26.9 million in payments from the state.
During the remainder of fiscal 1998, the Company intends to spend approximately
$2.9 million in a new business initiative, program enhancements and other
maintenance capital expenditures.
 
    The Company believes that its existing cash resources, cash generated from
operations and alternative financing sources, including leasing alternatives,
will be sufficient to complete implementation of the Illinois program and the
newly awarded Kentucky program, assuming successful resolution of the pending
protest, and to meet its liquidity requirements for the foreseeable future.
 
RECENT ACCOUNTING PRONOUNCEMENTS
 
    In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income." This Statement establishes standards for reporting and displaying
comprehensive income and its components in the consolidated financial
statements. It does not, however, require a specific format for the statement,
but requires the Company to display an amount representing total comprehensive
income for the period in that financial statement. This Statement is effective
for the Company's 1999 fiscal year. The Company believes the adoption will have
no material impact on the financial statements.
 
    In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of
an Enterprise and Related Information." The Statement establishes standards for
how public business enterprises are to report information about operating
segments in annual financial statements and requires those enterprises to report
selected information about operating segments in interim financial reports
issued to shareholders. This Statement is effective for the Company's 1999
fiscal year. The Company does not believe it currently has any separately
reportable segments.
 
YEAR 2000 COMPLIANCE
 
    Like many companies, the Company is reliant on technology to deliver
services to its customers. During 1998, the Company will utilize internal and
external resources to identify, correct or reprogram and
 
                                       12
<PAGE>
test its computer systems for year 2000 compliance. The "Year 2000" problem is
the result of computer programs being written using two digits rather than four
to define the applicable year. Any of the Company's programs that have date
sensitive software may recognize a date using "00" as the year 1900 rather than
the year 2000. The Company expects to replace some systems and modify others as
part of this process. Based on preliminary assessments at this time, the Company
does not expect to incur significant operating expenses or be required to invest
heavily in computer system improvements in order to be year 2000 compliant.
However, there can be no assurance that the systems of other companies on which
the Company's operations rely will also be converted in a timely manner, or that
any such failure to convert by another company will not have adverse effect on
the Company's operations.
 
                                       13
<PAGE>
                           PART II. OTHER INFORMATION
 
ITEM 1. LEGAL PROCEEDINGS
 
    On May 8, 1998, the Company and the State of Connecticut entered into an
agreement (the "Agreement") settling the State's claims against the Company,
except for certain penalties unrelated to the settled claims which the parties
are to negotiate, and the Company's claims against the State. The Agreement
modifies the terms of the Company's existing vehicle inspection and safety
inspection contracts with the State to provide among other things, for the
Company to add five emissions inspection lanes to its existing network in lieu
of constructing an additional station as required under the existing contracts.
The Company previously disclosed that it had filed a demand for arbitration in
response to a decision by the Commissioner of the Department of Motor Vehicles
in February 1996 that the Company realized cost savings of $2.4 million, plus
interest until paid, in connection with certain changes under the Company's
contract to perform vehicle emissions testing services.
 
    On October 8, 1997, Ganzcorp Investments, Inc., d/b/a Mustang Dynamometer,
filed suit against Envirotest in U.S. District Court for the Northern District
of Ohio alleging breach of contract in connection with Envirotest's termination
of its contract to supply the Company with chassis dynamometers and alleging
damages in excess of $10 million. The Company filed an answer and counterclaim
on October 28, 1997, denying the material allegations of the complaint,
asserting defenses based on, among other things, the clause in the contract
permitting termination for convenience by Envirotest and asserting counterclaims
in the amount of $7.9 million for breaches of warranty and contract by Mustang.
On February 28, 1998, the parties entered into a Mediation Agreement providing
for, among other things, a mediation conference on July 28, 1998. While the
parties continue to discuss settlement of the matter, the Company is unable to
predict the outcome of these discussions. The Company intends to vigorously
defend against Ganzcorp's claims and to pursue Envirotest's counterclaims. The
Company believes that any judgment against the Company will not have a material
adverse effect on its financial position and results of operations.
 
    On July 31, 1998, the Company received approximately $12.7 million from the
Commonwealth of Pennsylvania in payment of the final installment due to the
Company under the Settlement Agreement, dated December 15, 1995 (the "Settlement
Agreement"), between the Company and the Commonwealth. The Settlement Agreement
required the Company to utilize its best efforts to dispose of the assets it
acquired to perform vehicle emissions testing services in Pennsylvania. Under
the terms of the Settlement Agreement, if the net proceeds received by the
Company was less than $55 million, the Commonwealth was required to pay the
Company fifty percent of the difference up to $11 million, plus interest at 6%
from December 15, 1995. Each of the Company and Commonwealth has now satisfied
all obligations due to the other under the Settlement Agreement.
 
    R.W. Granger & Sons filed a Demand for Arbitration in the East Hartford,
Connecticut, office of the American Arbitration Association in September 1996
alleging breach of contract and failure to pay amounts due Granger in connection
with the construction of certain of the Company's testing facilities in the
State of Connecticut. On December 29, 1997, Granger filed a complaint in State
Superior Court in the Judicial District of Hartford/New Britain at New Britain
alleging that the Company's failure to pay amounts due to Granger is an unfair
trade practice under the Connecticut Unfair Trade Practices Act. The Arbitrators
awarded Granger approximately $495,000, including the costs of the Arbitration,
in a decision rendered on August 12, 1998. Granger was claiming damages of
approximately $2.0 million in its Demand for Arbitration. The Company intends to
vigorously defend against Granger's remaining claim in State Superior Court. The
Company believes that any judgment against the Company with respect to the
remaining claim will not have a material adverse effect on its financial
position and results of operations.
 
    On November 22, 1997, the Denver District Court granted the Company's Motion
to Dismiss a class action complaint filed by Timothy Dore on behalf of all
persons who paid to have a vehicle tested in the
 
                                       14
<PAGE>
Company's metro Denver facilities from January 2, 1995 to present. The complaint
alleged breach of contractual obligation to the class and the negligent
performance of emissions testing under the Company's contract with the State of
Colorado. On January 6, 1998, Dore filed an appeal in the State of Colorado
Court of Appeals from the trial court's order of dismissal. On June 1, 1998 Dore
filed a motion to dismiss the appeal and on June 15, 1998 the State of Colorado
Court of Appeals granted the motion to dismiss the appeal with prejudice. On
June 1, 1998, the attorneys for Dore filed a new class action complaint in the
Boulder District Court. The new complaint has replaced Timothy Dore with two new
representative Plaintiffs, Jay Sherrit and Arthur D. Gonzales, and the new
complaint is brought on behalf of virtually the identical class. Although the
new complaint purports to state new causes of action, it alleges claims for
breach of contract and negligence which are similar to Dore's class action
complaint. On June 23, 1998 the Company filed a Motion to Change Venue to the
Denver District Court. The Company intends to vigorously defend against
Plaintiff's claims. The Company believes that any judgment obtained against the
Company will not have a material adverse effect on its financial position and
results of operations.
 
    In addition to the above, the Company is a party to various other legal
proceedings and claims in the ordinary course of business. Although the claims
cannot be estimated, in the opinion of management the resolution of these
matters will not have a material adverse effect on the Company's consolidated
financial position and results of operations.
 
ITEM 5. OTHER INFORMATION
 
    On August 12, 1998, the Company entered into a merger agreement pursuant to
which Stone Rivet, Inc., a Delaware corporation ("Purchaser"), will commence a
tender offer for all of the issued and outstanding shares of the Company's Class
A Common Stock for $266.3 million in cash, or $17.25 per share, plus the
assumption of approximately $275 million in net debt. The Class B and Class C
shares of the Company's Common Stock are convertible by the holders thereof into
shares of Class A Common Stock on a one-for-one basis and thus may be tendered
as well. The tender offer will expire on September 30, 1998, and will be
conditioned (the "Minimum Condition"), among other things, upon the tender of at
least 90 percent of the outstanding shares of the Company's Class A Common Stock
(assuming conversion of all Class B and Class C shares into shares of Class A
Common Stock). Certain stockholders of the Company have agreed to tender
approximately 50 percent of the outstanding shares into the offer. If the
Minimum Condition is not satisfied, the transaction will be completed pursuant
to a merger. Purchaser is a wholly owned indirect subsidiary of Newmall Limited,
a U.K. company. Newmall Limited is controlled by the Alchemy Investment Plan, an
investment consortium, which is advised by Alchemy Partners.
 
                                       15
<PAGE>
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
 
    (a)  Exhibits
 
<TABLE>
<S>         <C>
 EMPLOYMENT AGREEMENTS
  (10.127)  Confidential Severance Agreement and General Release made as of May 15,
            1998, by and between Mark Frost and Envirotest Systems Corp.
 
  (10.128)  Employment Agreement made as of the 4th day of June 1998 by and between
            John Pachuta and Envirotest Systems Corp.
 
  (10.129)  Amendment of the Separation, Release and Waiver Agreement, dated as of
            September 30, 1997, and first amended as of April 20, 1998, by and between
            C. Michael Alston and Envirotest Systems Corp., made as of the 4th day of
            June 1998.
 
  (10.130)  Amendment of the Employment Agreement dated as of January 1, 1993, by and
            between Chester C. Davenport and Envirotest Systems Corp., made as of the
            4th day of June 1998.
 
  (10.131)  Amendment of the Employment Agreement dated as of January 1, 1996, and
            first amended as of April 21, 1998, by and between Raj G. Modi and
            Envirotest Systems Corp., made as of the 4th day of June 1998.
 
  (10.132)  Consulting Agreement made as of the 4th day of June 1998 by and between Raj
            G. Modi and Envirotest Systems Corp.
 
 MATERIAL CONTRACTS
 
  (10.133)  Change Order for Services ("Change Order") issued by the Ohio Environmental
            Protection Agency ("OEPA"), by its Director to Envirotest Systems Corp.
            ("Contractor") changes and restates (1) a Contract for Services between the
            Parties for an Automobile Inspection and Maintenance Program in Cuyahoga
            County dated April 25, 1995, ("Zone 4 Contract"); (2) an Amended Contract
            for Services between the Parties for Summit, Portage, Medina, Lake, Lorain,
            and Geauga Counties dated April 25, 1995, ("Zone 1 Contract"); and (3) a
            Contract for Services between the Parties for Montgomery, Clark, and Greene
            Counties dated October 24, 1994, ("Zone 2 Contract").
 
  (10.134)  First and Second Amendments dated October 20, 1997 and May 8, 1998,
            respectively, of the Contract between the State of Connecticut and
            Envirotest Systems Corp. for the Establishment and Operation of Motor
            Vehicle Inspection Program Facilities for the State of Connecticut.
 
  (10.135)  Agreement made by and between Envirotest Systems Corp. and the State of
            Connecticut, Department of Motor Vehicles dated May 8, 1998.
 
  (10.136)  Contract for the Provision and Operation of an Improved Basis Vehicle
            Inspection Maintenance Program in Boone, Campbell, and Kenton Counties in
            Kentucky, and Specifically for the Provision and Operation of a Vehicle
            Emissions Testing Facility in Each of the Three Counties, effective as of
            July 1, 1998 by and between Envirotest Systems Corp. and the Commonwealth
            of Kentucky, and Addendums 1-3 thereto.
 
  (27)      Financial Data Schedule
</TABLE>
 
(b) Reports on Form 8-K
 
    1.  The Company filed a report on Form 8-K on May 7, 1998, reporting that
       the Company is exploring strategic alternatives to maximize shareholder
       value.
 
                                       16
<PAGE>
                                   SIGNATURES
 
    Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrants have duly caused their report to be signed on their behalf by the
undersigned thereunto duly authorized.
 
<TABLE>
<S>                             <C>  <C>
                                ENVIROTEST SYSTEMS CORP.
                                                (REGISTRANT)
 
                                ENVIROTEST TECHNOLOGIES, INC.
                                                (REGISTRANT)
 
Date: Aug.   , 1998             /s/ F. ROBERT MILLER
                                ---------------------------------------------
                                F. Robert Miller
                                   PRESIDENT AND CHIEF EXECUTIVE OFFICER
 
Date: Aug.   , 1998             /s/ RAJ MODI
                                ---------------------------------------------
                                Raj Modi
                                   VICE PRESIDENT, CHIEF FINANCIAL OFFICER,
                                   TREASURER AND ASSISTANT SECRETARY
                                   (PRINCIPAL FINANCIAL OFFICER)
</TABLE>
 
                                       17
<PAGE>
                            ENVIROTEST SYSTEMS CORP.
                                 EXHIBIT INDEX
 
<TABLE>
<S>         <C>
 EXHIBIT
 NUMBER:
 EMPLOYMENT AGREEMENTS
 
  (10.127)  Confidential Severance Agreement and General Release made as of May 15,
            1998, by and between Mark Frost and Envirotest Systems Corp.
 
  (10.128)  Employment Agreement made as of the 4th day of June 1998 by and between
            John Pachuta and Envirotest Systems Corp.
 
  (10.129)  Amendment of the Separation, Release and Waiver Agreement, dated as of
            September 30, 1997, and first amended as of April 20, 1998, by and between
            C. Michael Alston and Envirotest Systems Corp., made as of the 4th day of
            June 1998.
 
  (10.130)  Amendment of the Employment Agreement dated as of January 1, 1993, by and
            between Chester C. Davenport and Envirotest Systems Corp., made as of the
            4th day of June 1998.
 
  (10.131)  Amendment of the Employment Agreement dated as of January 1, 1996, and
            first amended as of April 21, 1998, by and between Raj G. Modi and
            Envirotest Systems Corp., made as of the 4th day of June 1998.
 
  (10.132)  Consulting Agreement made as of the 4th day of June 1998 by and between Raj
            G. Modi and Envirotest Systems Corp.
 
 MATERIAL CONTRACTS
 
  (10.133)  Change Order for Services ("Change Order") issued by the Ohio Environmental
            Protection Agency ("OEPA"), by its Director to Envirotest Systems Corp.
            ("Contractor") changes and restates (1) a Contract for Services between the
            Parties for an Automobile Inspection and Maintenance Program in Cuyahoga
            County dated April 25, 1995, ("Zone 4 Contract"); (2) an Amended Contract
            for Services between the Parties for Summit, Portage, Medina, Lake, Lorain,
            and Geauga Counties dated April 25, 1995, ("Zone 1 Contract"); and (3) a
            Contract for Services between the Parties for Montgomery, Clark, and Greene
            Counties dated October 24, 1994, ("Zone 2 Contract").
 
  (10.134)  First and Second Amendments dated October 20, 1997 and May 8, 1998,
            respectively, of the Contract between the State of Connecticut and
            Envirotest Systems Corp. for the Establishment and Operation of Motor
            Vehicle Inspection Program Facilities for the State of Connecticut.
 
  (10.135)  Agreement made by and between Envirotest Systems Corp. and the State of
            Connecticut, Department of Motor Vehicles dated May 8, 1998.
 
  (10.136)  Contract for the Provision and Operation of an Improved Basis Vehicle
            Inspection Maintenance Program in Boone, Campbell, and Kenton Counties in
            Kentucky, and Specifically for the Provision and Operation of a Vehicle
            Emissions Testing Facility in Each of the Three Counties, effective as of
            July 1, 1998 by and between Envirotest Systems Corp. and the Commonwealth
            of Kentucky, and Addendums 1-3 thereto.
 
  (27)      Financial Data Schedule
</TABLE>
 
                                       18