<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                                   FORM 10-Q

                  QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

For quarter ended April 30, 1997                  Commission file number 0-12204

                           GRAPHIC INDUSTRIES, INC.
            (Exact name of registrant as specified in its charter)

           GEORGIA                                             58-1101633
(State or other jurisdiction of                             (I.R.S. Employer
incorporation of organization)                             Identification No.)

2155 MONROE DRIVE, N.E., ATLANTA, GEORGIA                          30324
(Address of principal executive offices)                        (Zip Code)

       Registrant's Telephone Number, Including Area Code (404) 874-3327


                                NOT APPLICABLE
Former name, former address and former fiscal year, if changed since last report


      TITLE OF EACH CLASS              SHARES OUTSTANDING AS OF APRIL 30, 1997
      -------------------              ---------------------------------------
COMMON STOCK, $.10 PAR VALUE                           7,361,343
CLASS B COMMON STOCK, $.10 PAR VALUE                   4,518,817

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 TWELVE MONTHS (OR SUCH SHORTER PERIODS 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>
 
                           GRAPHIC INDUSTRIES, INC.
                           ------------------------

                                     INDEX
                                     -----


PART I - FINANCIAL INFORMATION                     PAGE NUMBER
------------------------------                     -----------

Item 1. - Financial Statements (Unaudited)

     Condensed Consolidated Statements of Income -      1
     three months ended April 30, 1997 and
     April 30, 1996
 
     Condensed Consolidated Balance Sheets -          2-3
     April 30, 1997 and January 31, 1997
 
     Condensed Consolidated Statements of               4
     Cash Flows - three months ended
     April 30, 1997 and April 30, 1996
 
     Notes to Condensed Consolidated Financial          5
     Statements - April 30, 1997


Item 2. - Management's Discussion and Analysis          7
          of Financial Condition and Results of
          Operations
 
 
PART II - OTHER INFORMATION
---------------------------
 
Item l.    Legal Proceedings                           10
     2.    Changes in Securities                       10
     3.    Defaults upon Senior Securities             10
     4.    Submission of Matters to a Vote of          10
           Security Holders
     5.    Other Information                           10
     6.    Exhibits and Reports on Form 8-K            10
 
SIGNATURES                                             11
<PAGE>
 
                        PART I - FINANCIAL INFORMATION
                         ITEM 1 - FINANCIAL STATEMENTS


                   GRAPHIC INDUSTRIES, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (UNAUDITED)
 
 
                                    THREE MONTHS ENDED APRIL 30,
                                    ----------------------------
                                         1997          1996
                                     ------------  ------------
Net sales                            $115,245,807  $112,961,201
 
Cost of sales                          85,577,889    84,380,473
                                     ------------  ------------
                                       29,667,918    28,580,728
Selling, general and
   administrative expenses             20,983,119    20,632,952
 
Restructuring charge                            -     9,000,000
 
Interest and other income-net             660,457       770,714
 
Interest expense                        2,757,192     2,688,539
                                     ------------  ------------
 
Income (loss) before income taxes       6,588,064    (2,970,049)
 
Income taxes (benefit)                  2,635,000      (561,000)
                                     ------------  ------------
 
Net income (loss)                    $  3,953,064  $ (2,409,049)
                                     ============  ============
 
Net income (loss) per share:
   Primary                           $        .34  $       (.21)
                                     ============  ============
   Fully diluted                     $        .32  $       (.21)
                                     ============  ============
 
Dividends declared:
  Common Stock                       $      .0175  $      .0175
                                     ============  ============
  Class B Common Stock               $      .0125  $      .0125
                                     ============  ============



See notes to condensed consolidated financial statements.



                                      -1-
<PAGE>
 
                   GRAPHIC INDUSTRIES, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS


                                      APRIL 30,    JANUARY 31,
                                        1997          1997
                                    ------------- -------------
                                     (Unaudited)
A S S E T S
-----------
 
Current Assets
  Cash and marketable securities    $ 25,784,763  $ 30,789,430
  Trade accounts receivable           88,330,584    80,658,006
  Inventories:
    Materials                         10,809,552    10,113,812
    Work-in-process                   26,056,094    18,597,802
                                    ------------  ------------
                                      36,865,646    28,711,614
 
  Prepaid expenses and other
    current assets                     6,562,747     4,691,311
                                    ------------  ------------
 
          Total Current Assets       157,543,740   144,850,361
 
Other Assets                          13,292,476    10,582,417
 
Property, Plant and Equipment
  Land                                 9,027,468     9,027,467
  Buildings and improvements          44,172,292    43,637,850
  Machinery and equipment            169,303,510   164,719,258
                                    ------------  ------------
                                     222,503,270   217,384,575
 
  Less accumulated depreciation       94,625,558    90,250,580
                                    ------------  ------------
                                     127,877,712   127,133,995
 
Goodwill-net                          16,795,672    16,909,523
                                    ------------  ------------
                                    $315,509,600  $299,476,296
                                    ============  ============


See notes to condensed consolidated financial statements.



                                      -2-
<PAGE>
 
                   GRAPHIC INDUSTRIES, INC. AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS


                                        APRIL 30,     JANUARY 31,
                                          1997           1997
                                      ------------   ------------
                                      (Unaudited)

LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
 
Current Liabilities
  Notes payable                       $ 22,395,316   $ 15,814,485
  Accounts payable                      26,843,340     21,426,662
  Other current liabilities             19,823,872     20,117,973
  Current portion of long-term
    obligations                          3,385,032      3,471,916
                                      ------------   ------------
       Total Current Liabilities        72,447,560     60,831,036
 
Long-Term Obligations, less
  current portion                      101,888,334     99,676,541
 
Deferred Income Taxes                   15,563,160     15,620,738
 
7% Convertible Subordinated
  Debentures                            19,553,000     20,787,000
 
Shareholders' Equity
  Preferred Stock, no par value;
    authorized 500,000
    shares; none issued                        -0-            -0-
  Common Stock, $.10 par value;
    authorized 20,000,000 shares;
    issued 7,361,343 at April 30,
    1997 and 7,357,309 at January
    31, 1997, including treasury
    shares of 80,754 at April 30,
    1997 and 78,599 at January 31,
    1997                                   736,134        735,731
  Common Stock, Class B, $.10 par
    value; authorized 10,000,000
    shares; issued 4,518,817 in
    both periods                           451,882        451,882
 
  Additional paid-in capital            19,537,760     19,496,988
  Retained earnings                     86,142,298     82,657,865
                                      ------------   ------------
                                       106,868,074    103,342,466
  Less treasury stock at cost             (810,528)      (781,485)
                                      ------------   ------------
                                       106,057,546    102,560,981
                                      ------------   ------------
                                      $315,509,600   $299,476,296
                                      ============   ============

See notes to condensed consolidated financial statements.

                                      -3-
<PAGE>
 
                   GRAPHIC INDUSTRIES, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
      ------------------------------------------------------------------


                                                       THREE MONTHS ENDED
                                                             APRIL 30,
                                                    ---------------------------
                                                        1997           1996
                                                    ------------   ------------
OPERATING ACTIVITIES
Net income (loss)                                   $  3,953,064   $ (2,409,049)
Restructuring charge, net of tax                             -0-      6,026,500
Depreciation and amortization                          4,927,096      4,467,045
Gain on sale of property, plant
  and equipment and investments                         (328,269)      (102,250)
Gain on purchase of Convertible
  Subordinated Debentures                                (68,905)           -0-
Provision for deferred taxes                             131,750        120,625
Changes in operating assets and liabilities          (12,575,469)    (9,771,908)
                                                    ------------   ------------
Net cash used in operating activities                 (3,960,733)    (1,669,037)
 
INVESTING ACTIVITIES
Additions to property, plant and equipment            (5,826,070)    (5,020,077)
Proceeds from sale of property, plant
  and equipment                                          575,692          7,133
Assets of acquired businesses, net of
  cash (acquired) received                               288,031       (419,140)
Net purchase of marketable securities                 (2,479,619)    (5,855,014)
Other investing activities                            (3,484,278)    (3,241,909)
                                                    ------------   ------------
Net cash used in investing activities                (10,926,244)   (14,529,007)
 
FINANCING ACTIVITIES
Borrowings on long-term obligations                    3,000,000      3,000,000
Payments on long-term obligations                       (875,091)      (913,097)
Net borrowings on notes payable                        6,580,831      2,565,019
Purchase of Convertible Subordinated
  Debentures                                          (1,165,095)           -0-
Dividends                                               (184,638)      (180,230)
Other financing activities                               362,132        173,120
                                                    ------------   ------------
Net cash provided by financing activities              7,718,139      4,644,812
                                                    ------------   ------------
 
Net decrease in cash and cash equivalents             (7,168,838)   (11,553,232)
 
Cash and cash equivalents at beginning of period       7,212,351     14,476,139
                                                    ------------   ------------
Cash and cash equivalents at end of period          $     43,513   $  2,922,907
                                                    ============   ============
 

See notes to condensed consolidated financial statements.


                                      -4-
<PAGE>
 
                   GRAPHIC INDUSTRIES, INC. AND SUBSIDIARIES
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                                 APRIL 30, 1997


NOTE A--BASIS OF PRESENTATION

The financial statements included herein have been prepared by 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, although the Company believes that the disclosures are adequate to
make the information not misleading.  These financial statements should be read
in conjunction with the financial statements and related notes contained in the
1997 Annual Report on Form l0-K.  In the opinion of Management, the financial
statements contain all adjustments of a normal recurring nature necessary to
present fairly the financial position as of April 30, 1997 and the results of
the operations and cash flows for the three months then ended.  The results of
operations for the three months ended April 30, 1997 are not necessarily
indicative of the results to be expected for the year ending January 31, 1998.


NOTE B--MARKETABLE SECURITIES

The Company determines the appropriate classification of securities at the time
of purchase and reevaluates such securities at each balance sheet date.  At
April 30, 1997, all marketable securities were classified as "available for
sale" and, therefore, were carried at fair value, with the difference between
cost and fair value, net of tax, reported as a component of retained earnings.
At April 30, 1997, this difference was an unrealized loss of $749,452 net of
income taxes of $566,331.  This difference was due to the effect of changes in
market interest rates on the fair value of these securities.


NOTE C--NET INCOME (LOSS) PER COMMON SHARE

Primary earnings (loss) per share are computed based on the weighted average
number of common shares outstanding during the period.  Fully diluted earnings
(loss) per share are based on the weighted average number of shares outstanding
and, when dilutive, assumed conversion of convertible securities during the
period, after appropriate adjustments for interest and applicable income tax
effect.



                                      -5-
<PAGE>
 
NOTE D--SFAS NO. 128, "EARNINGS PER SHARE"

In February 1997 the Financial Accounting Standards Board issued a new
accounting pronouncement, SFAS No. 128, "Earnings per Share", which  will change
the current method of computing earnings per share.  The new standard requires
presentation of "basic earnings per share" and "diluted earnings per share"
amounts, as defined.  SFAS No. 128 will be effective for the Company's quarter
and year ending January 31, 1998, and, upon adoption, all prior-period earnings
per share data presented shall be restated to conform with the provisions of the
new pronouncement.  Application earlier than the Company's quarter ending
January 31, 1998 is not permitted.

Proforma basic and diluted earnings per share for the quarters ended April 30,
1997 and 1996 calculated under the provisions of SFAS No. 128 are as follows:
 
                                                  Quarter Ended April 30,
                                                  ------------------------
                                                     1997         1996
                                                  ----------  ------------
 
                    Basic earnings per share           $ .34        $(.21)
                    Diluted earnings per share         $ .32        $(.21)
 



                                      -6-
<PAGE>
 
                                    ITEM 2
                                    ------

                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                    ---------------------------------------
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                 ---------------------------------------------


     The following table sets forth items from the Condensed Consolidated
Statements of Income as a percentage of net sales for the indicated periods.
 
                                            THREE MONTHS
                                           ENDED APRIL 30,
                                        ---------------------

                                          1997         1996
                                        --------     --------
 
Net sales                               l00.0%         l00.0%
Cost of sales                            74.3           74.7
Selling, general and administrative
  expenses                               18.2           18.2
Restructuring charge                        -            8.0
Interest and other income - net           0.6            0.7
Interest expense                          2.4            2.4
                                        --------     --------
Income before income taxes                5.7           (2.6)
Provision for income taxes (benefit)      2.3           (0.5)
                                        --------     --------
Net income (loss)                         3.4%          (2.1)%
                                        ========     ========


RESULTS OF OPERATIONS

General.  As of May 31, 1996 Mercury Printing Company, Inc. ("Mercury"),
--------                                                                
Memphis, Tennessee, a subsidiary of the Company, acquired The Wimmer Companies,
Inc., a printer and publisher of cookbooks in Memphis, Tennessee.  The
acquisition was financed through the issuance of 53,830 shares of the Company's
Common Stock valued at $583,376 and cash payments amounting to $1,042,281 to
retire certain debt obligations.

As of November 1, 1996 the Company acquired Presstar Printing Corporation
("PPC"), a commercial printing company in Silver Spring, Maryland, serving the
Baltimore, Maryland and Washington, DC market areas.  The acquisition was
financed through the issuance of 102,059 shares of the Company's Common Stock
valued at $875,136 and cash payments amounting to $5,531,078 to retire certain
debt obligations.  In the quarter ended April 30, 1997 the Seller returned
$301,480 of cash and 40,816 shares of the Company's Common Stock as part of a
post closing settlement.  The shares were cancelled.



                                      -7-
<PAGE>
 
As of April 30, 1996 the Company recorded a one-time pre-tax restructuring
charge of $9,000,000.  The after-tax effect of the charge was $6,026,500 or
equivalent to $0.52 per common share.  The charge covered the costs associated
with the sale of the Company's direct-mail subsidiary, Graphic Direct-Illinois
("GDI") and the closing of a commercial printing subsidiary, The Stein Printing
Company, Inc. ("SPC").  Excluding the one-time charge, net income for the three
months ended April 30, 1996 would have been $3,617,451 or $0.31 per share
primary and $0.30 per share fully diluted.

NET SALES.  Net sales, for the three months ended April 30, 1997, increased
----------                                                                 
approximately $2.3 million or 2.0% as compared to the same period last year.  Of
this increase, approximately 2.5% was attributable to the net sales of the
acquisitions discussed above in the General section.  Excluding the sales of the
acquired businesses and of the subsidiaries affected by the restructuring, net
sales of the remaining operations increased by approximately 6.2%.

COST OF SALES.  Cost of sales, as a percentage of sales, decreased 0.4%, for the
--------------                                                                  
three months ended April 30, 1997 as compared to the same period last year.  The
decrease resulted from an improved product mix and higher utilization of assets.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES.  Selling, general and
---------------------------------------------                      
administrative expenses remained the same as a percentage of sales for both
periods.

RESTRUCTURING CHARGE.  A pre-tax $9,000,000 restructuring charge was booked in
---------------------                                                         
the quarter ended April 30, 1996.  See a discussion of the restructuring charge
in the General Section above in Results of Operations.

INTEREST AND OTHER INCOME-NET.  Interest and other income-net, as a percentage
------------------------------                                                
of sales, decreased 0.1% for the three months ended April 30, 1997 as compared
to the same period last year.  The decrease was due to a decrease in interest
income.

INTEREST EXPENSE.  Interest expense, as a percentage of sales, remained the same
-----------------                                                               
for both periods.

INCOME TAXES (BENEFIT).  The effective income tax rate for the three months
-----------------------                                                    
ended April 30, 1997 was 40.0%.  The income tax benefit for the three months
ended April 30, 1996 resulted from the loss caused by the $9,000,000 pre-tax
restructuring charge discussed in the General Section above in Results of
Operations.  The effective income tax rate prior to the restructuring charge was
40.0% for the three months ended April 30, 1996.



                                      -8-
<PAGE>
 
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

At April 30, 1997, the Company had approximately $85.3 million in working
capital as compared to approximately $81.3 million at April 30, 1996.  Capital
expenditures for property, plant and equipment were approximately $5.8 million
during the three months ended April 30, 1997.

The Company's capital expenditures, increase in other assets and increase in
current assets have been financed by funds from operations, from additional
borrowings and from use of cash and cash equivalents during the first three
months.  The increase in other assets is primarily due to advance payments for
several capital projects.  The increase in current assets is due primarily to an
increase in sales volume and work-in-process.

The Company believes that existing working capital, including a cash and
marketable securities balance of approximately $25.8 million at April 30, 1997,
funds provided from operations, undrawn bank lines and additional bank financing
will be adequate to satisfy the Company's presently anticipated needs for
working capital and capital expenditures, including possible future
acquisitions.

IMPACT OF INFLATION
-------------------

The Company has experienced increases in the costs of materials, labor,
equipment and machinery as well as other operating expenses.  Its ability to
pass on such increased costs through increased prices has been affected
differently in different time periods; however, the Company has generally been
able to mitigate cost increases by increasing its production efficiencies or by
passing on increased costs to customers.



                                      -9-
<PAGE>
 
                          PART II - OTHER INFORMATION
                          ---------------------------



ITEM ONE - LEGAL PROCEEDINGS
----------------------------

     At April 30, 1997, there were no material pending legal proceedings to
     which the Company was a party or to which any of its property was the
     subject.
 

ITEM TWO - CHANGES IN SECURITIES
--------------------------------

     None


ITEM THREE - DEFAULTS UPON SENIOR SECURITIES
--------------------------------------------

     None


ITEM FOUR - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------------------

     None


ITEM FIVE - OTHER INFORMATION
-----------------------------

     None


ITEM SIX - EXHIBITS AND REPORTS ON 8-K
--------------------------------------

     Exhibit 11 - Statement Regarding Computation of Earnings Per Share.



                                      -10-
<PAGE>
 
                                   SIGNATURES
                                   ----------



     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                         GRAPHIC INDUSTRIES, INC.
                                 ----------------------------------------



DATE: June 13, 1997
      ------------------



                                 /s/ Mark C. Pope III
                                 --------------------
                                 Mark C. Pope III
                                 Chairman and Chief Executive Officer



DATE: June 13, 1997
      ------------------



                                 /s/ David S. Fraser
                                 ----------------------------------------
                                 Chief Financial Officer and Treasurer
 
 



                                      -11-