<PAGE>

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

--------------------------------------------------------------------------------

     [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

          For  the quarterly period ended December 29, 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 No. 0-8544

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

                 Delaware                                   56-0901212
   --------------------------------------          ------------------------
  (State or other jurisdiction of                       (I.R.S. Employer
   incorporation or organization)                     Identification No.)

           701 Griffith Road                                 28217
   --------------------------------------          ------------------------
      Charlotte, North Carolina                           (Zip Code)
   --------------------------------------
  (Address of principal executive offices)

                                 (704) 559-5777
                                ----------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
                                ----------------
             (Former name, former address and former fiscal year, if
                           changed since last report)

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, and (2) has 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.

                                                Outstanding at
    Class of Common Stock                      February 8, 2002
   ------------------------                    ----------------
   Par value $.10 per share                        3,255,428

                                                                          Page 1

<PAGE>

                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                                      INDEX

<TABLE>
<CAPTION>
PART I.  FINANCIAL INFORMATION:                                                      Page No.
                                                                                     --------
<S>                                                                                  <C>
     Item 1.  Financial Statements:

         Condensed Consolidated Balance Sheets.....................................    3-4

         Condensed Consolidated Statements of Operations...........................      5

         Condensed Consolidated Statements of Cash Flows...........................      6

         Condensed Consolidated Statements of Stockholders' Equity.................      7

         Notes to Condensed Consolidated Financial Statements......................    8-11

     Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations.................................................   12-21

PART II. OTHER INFORMATION:

     Item 6.  Exhibits and reports on Form 8-K.....................................     22
</TABLE>

                                                                          Page 2

<PAGE>

                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                   ------------------------------------------
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      -------------------------------------

                                                    December 29,     June 30,
                                                        2001           2001
                                                    ------------   ------------
                                                    (unaudited)
                                 ASSETS
                                 ------
CURRENT:
   Accounts receivable, less allowances of
       $717,987 and $747,092                        $ 15,053,757   $ 19,440,188
   Inventories                                        16,177,042     16,721,714
   Prepaid expenses and other current assets           3,460,971      3,142,445
                                                    ------------   ------------
       TOTAL CURRENT ASSETS                           34,691,770     39,304,347
                                                    ------------   ------------



PROPERTY AND EQUIPMENT:
   Building and leasehold improvements                 7,336,153      7,336,153
   Machinery and equipment                             1,079,571      1,083,517
   Furniture, fixtures and transportation equipment    1,632,547      1,657,855
                                                    ------------   ------------
      Total                                           10,048,271     10,077,525
   Less accumulated depreciation and amortization     (3,260,708)    (2,865,649)
                                                    ------------   ------------

       NET PROPERTY AND EQUIPMENT                      6,787,563      7,211,876
                                                    ------------   ------------

DEFERRED TAX ASSET, LONG TERM                          4,264,751      3,297,707
OTHER LONG-TERM ASSETS                                   239,077        268,750
GOODWILL, NET OF ACCUMULATED AMORTIZATION              4,790,407      4,790,407
                                                    ------------   ------------

                                                    $ 50,773,568   $ 54,873,087
                                                    ============   ============

     See accompanying notes to condensed consolidated financial statements.

                                                                          Page 3


<PAGE>

                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                   ------------------------------------------
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      -------------------------------------
<TABLE>
<CAPTION>
                                                         December 29,   June 30,
                                                            2001          2001
                                                        ------------  ------------
<S>                                                     <C>               <C>
                                                         (unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
   Bank overdraft                                       $    186,967  $  1,438,466
   Accounts payable                                       12,699,717    14,005,690
   Customers' deposits                                     4,903,312     4,183,369
   Accrued expenses                                          896,842     1,475,347
   Current maturities of long-term debt                   12,731,873       901,216
                                                        ------------  ------------

       TOTAL CURRENT LIABILITIES                          31,418,711    22,004,088

Long-term debt                                                    --    10,978,000
Obligation under capital lease                             4,442,615     4,524,682
                                                        ------------  ------------
       TOTAL LIABILITIES                                  35,861,326    37,506,770
                                                        ------------  ------------


STOCKHOLDERS' EQUITY:
   Common stock - par value $.10; authorized 20,000,000
      shares, issued 3,396,228, outstanding 3,255,428        339,623       339,623
   Additional paid-in capital                             13,047,150    13,047,150
   Accumulated other comprehensive loss                     (250,153)     (263,585)
   Retained earnings                                       2,362,445     4,829,952
                                                        ------------  ------------
      Total                                               15,499,065    17,953,140
   Treasury stock, at cost, 140,800 shares                  (586,823)     (586,823)
                                                        ------------  ------------
       TOTAL STOCKHOLDERS' EQUITY                         14,912,242    17,366,317
                                                        ------------  ------------

                                                        $ 50,773,568  $ 54,873,087
                                                        ============  ============
</TABLE>


     See accompanying notes to condensed consolidated financial statements.

                                                                          Page 4


<PAGE>

                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                   -------------------------------------------
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 -----------------------------------------------

<TABLE>
<CAPTION>
                                                          (Unaudited)                    (Unaudited)
                                                   For the Three Months Ended     For the Six Months Ended
                                                   --------------------------     ------------------------
                                                    12-29-01       12-30-00        12-29-01         12-30-00
                                                   (13 Weeks)     (13 Weeks)       (26 Weeks)      (26 Weeks)
                                                   ----------     ----------       ----------      ----------
<S>                                               <C>            <C>              <C>             <C>

REVENUES                                          $ 15,107,150    $ 17,810,685    $ 27,284,257    $ 38,706,566

COST OF SALES                                       13,012,763      15,405,592      23,700,254      34,753,721
                                                  ------------    ------------    ------------    ------------

GROSS PROFIT                                         2,094,387       2,405,093       3,584,003       3,952,845

SELLING EXPENSES                                     1,412,563       1,812,153       2,924,433       3,823,220

GENERAL AND ADMINISTRATIVE
    EXPENSES                                         1,419,909       2,109,290       3,019,274       3,990,183
                                                  ------------    ------------    ------------    ------------

OPERATING LOSS                                        (738,085)     (1,516,350)     (2,359,704)     (3,860,558)

    Net Interest Expense                               582,151         646,720       1,137,803       1,158,124
    Loss on settlement of uncommitted
      foreign currency derivative contracts                  -       3,925,947               -       3,925,947
                                                  ------------    ------------    ------------    ------------

LOSS BEFORE BENEFIT FOR
    INCOME TAX                                      (1,320,236)     (6,089,017)     (3,497,507)     (8,944,629)

BENEFIT FOR INCOME TAX                                (280,000)     (2,338,146)     (1,030,000)     (3,410,100)
                                                  ------------    ------------    ------------    ------------

NET LOSS                                          $ (1,040,236)   $ (3,750,871)   $ (2,467,507)   $ (5,534,529)
                                                  ============    ============    ============    ============

Basic loss per share                              $      (0.32)   $      (1.15)   $      (0.76)   $     ( 1.70)
Diluted loss per share                                   (0.32)          (1.15)          (0.76)          (1.70)

Weighted average shares
    Outstanding:
    Basic                                            3,255,428       3,252,428       3,255,428       3,252,428
    Diluted                                          3,255,428       3,252,428       3,255,428       3,252,428

</TABLE>

     See accompanying notes to condensed consolidated financial statements.

                                                                          Page 5

<PAGE>

                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                   ------------------------------------------
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 -----------------------------------------------

<TABLE>
<CAPTION>
                                                                             (Unaudited)
                                                                    ------------------------------
                                                                       For the Six Months Ended
                                                                    ------------------------------
                                                                      12-29-01          12-30-00
                                                                     (26 Weeks)        (26 Weeks)
                                                                    --------------  --------------
<S>                                                                 <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                         $ (2,467,507)   $ (5,534,529)
Adjustments to reconcile net loss to cash used
    in operating activities:
      Depreciation                                                        430,783         461,666
      Amortization                                                        122,832         260,698
      Provision for inventory obsolescence                                238,000         568,311
      Provision for losses on accounts receivable                          60,000         362,907
      Gain (Loss) on disposal of assets                                    (4,679)          7,282
      Decrease (Increase) in:
        Accounts receivable                                             4,326,431      12,260,758
        Inventories                                                       306,672      (4,854,173)
        Prepaid expenses and other current assets                        (441,358)      1,859,258
        Other assets                                                       29,673         146,863
        Deferred tax asset, long term                                  (1,030,000)     (2,781,401)
      (Decrease) Increase in:
        Accounts payable and accrued liability on foreign currency
            derivatives and bank overdraft                             (2,557,472)     (7,540,388)
        Accrued expenses, deferred revenue and customers' deposits        217,826       3,960,396
                                                                     ------------    ------------
      Net cash used in operating activities                              (768,799)       (822,352)
                                                                     ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Capital expenditures                                                  (12,643)       (250,250)
    Proceeds on sale of assets                                             10,852          68,773
                                                                     ------------    ------------
      Net cash used in investing activities                                (1,791)       (181,477)
                                                                     ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Net borrowings on line of credit agreement                          1,152,503         735,000
    Principal payments on long-term debt                                 (381,913)       (374,363)
                                                                     ------------    ------------
      Net cash provided by financing activities                           770,590         360,637
                                                                     ------------    ------------

NET DECREASE IN CASH                                                            -        (643,192)
CASH AND CASH EQUIVALENTS at beginning of period                                -         713,754
                                                                     ------------    ------------
CASH AND CASH EQUIVALENTS at end of period                           $          -    $     70,562
                                                                     ============    ============
Supplemental Disclosures:
    Cash paid during period for:
      Interest                                                       $  1,143,516    $  1,078,018
      Income taxes                                                   $     64,670    $     40,200
</TABLE>

     See accompanying notes to condensed consolidated financial statements.

                                                                          Page 6

<PAGE>

                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                   -------------------------------------------
            CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
            ---------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                            Accumulated
                                                                 Additional                    Other
                                        Common       Common       Paid-In      Retained    Comprehensive   Treasury    Comprehensive
                                        Shares       Stock        Capital      Earnings         Loss         Stock         Loss
                                       ---------   ----------   -----------  ------------  -------------  -----------  -------------
<S>                                    <C>         <C>          <C>          <C>           <C>            <C>          <C>
BALANCE, JULY 1, 2000                  3,393,228   $  339,323   $13,045,200  $10,692,607   $         -    $ (586,823)
Net loss.............................          -            -             -   (5,862,655)            -              -   $(5,862,655)
Accumulated Comprehensive loss
   - Interest rate swap, net of tax..          -            -             -            -      (263,585)             -      (263,585)
                                                                                                                        -----------
   Comprehensive Loss................          -            -             -            -             -              -   $(6,126,240
                                                                                                                        ===========
Exercise of stock options............      3,000          300         1,950            -             -              -
                                       ---------   ----------   -----------  -----------   -----------    -----------
BALANCE, JUNE 30, 2001                 3,396,228      339,623    13,047,150    4,829,952      (263,585)      (586,823)
Net loss.............................          -            -             -   (2,467,507)            -              -   $(2,467,507)
Accumulated Comprehensive
    Income  - Interest rate of tax...          -            -             -            -        13,432              -        13,432
                                                                                                                        -----------
   Comprehensive Loss................          -            -             -            -             -              -   $(2,480,939)
                                       ---------   ----------   -----------  -----------   -----------    -----------   ===========
BALANCE, DECEMBER 29, 2001
   (unaudited)                         3,396,228   $  339,623   $13,047,150  $ 2,362,445   $  (250,153)   $  (586,823)
                                       =========   ==========   ===========  ===========   ===========    ===========
</TABLE>

 See accompanying summary of accounting policies and notes to condensed
                       consolidated financial statements.

                                                                          Page 7

<PAGE>

                   SPEIZMAN INDUSTRIES, INC. AND SUBSIDIARIES
                   ------------------------------------------
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              ----------------------------------------------------

Note 1.    Interim Financial Statements

           In the opinion of management, the accompanying unaudited consolidated
           financial statements contain all adjustments necessary to present the
           Registrant's financial position, the results of operations and
           changes in cash flow for the periods indicated. Any interim
           adjustments are of a normal recurring nature unless otherwise
           indicated in the Notes to the Financial Statements.

           The accounting policies followed by the Registrant are set forth in
           the Registrant's Form 10-K for the fiscal year ended June 30, 2001,
           which is incorporated by reference.

Note 2.    Deferred Revenue

           The Company, in some instances with its laundry equipment and
           services business, is engaged in installation projects for customers
           on a contract basis. Generally, retainage on such contracts is
           withheld and recorded as deferred revenue until the project is
           complete. In addition, some contracts call for progress billings. In
           such cases, the Company uses the percentage of completion method to
           recognize revenue whereby sales are recorded based upon the ratio of
           costs incurred to total estimated costs at completion. Deferred
           revenue was immaterial at December 29, 2001 and June 30, 2001.

Note 3.   Inventories

           Inventories consisted of the following:

                                              December 29,       June 30,
                                                 2001             2001
                                              ------------     ------------
                                               (unaudited)
           Machines                            $10,714,158      $10,910,198
           Parts and supplies                    5,462,884        5,811,516
                                              ------------     ------------
                Total                          $16,177,042      $16,721,714
                                              ============     ============

Note 4.    Taxes on Income

           Taxes on income are allocated to interim periods on the basis of an
           estimated annual effective tax rate. Other comprehensive losses, if
           any, are net of an estimated deferred tax benefit. Deferred income
           taxes consist primarily of net operating loss carryforwards. For the
           period ending December 2002, management determined it was prudent to
           establish a valuation allowance of $220,000 against its gross
           deferred tax assets of $5.9 million based upon general economic
           conditions remaining soft and, more specifically, the conditions in
           the textile industry deteriorating further in the current year than
           originally anticipated. Management believes that it is more likely
           than not that a sufficient level of taxable income will be generated
           in years subsequent to fiscal 2002 and prior to the expiration of the
           Company's NOLs relating to its deferred tax asset to realize the net
           deferred amount of $5.9 million at December 29, 2001.

                                                                          Page 8

<PAGE>

Note 5.    Net Income (Loss) Per Share

           Basic net income per share includes no dilution and is calculated by
           dividing net income by the weighted average number of common shares
           outstanding for the period. Diluted net loss per share reflects the
           potential dilution of securities that could share in the net income
           of the Company which consists of stock options using the treasury
           stock method. In a period with a net loss, the weighted average
           shares outstanding will be the same for basic and diluted net loss
           per share.

Note 6.    Intangibles

           In June 2001, the Financial Accounting Standards Board finalized
           Statement of Financial Accounting Standards (SFAS) Statements No.
           141, Business Combinations (SFAS 141), and No. 142, Goodwill and
           Other Intangible Assets (SFAS 142). SFAS 141 requires the use of the
           purchase method of accounting and prohibits the use of the
           pooling-of-interest methods of accounting for business combinations
           initiated after June 30, 2001. SFAS 141 also requires that the
           Company recognize acquired intangible assets apart from goodwill if
           the acquired intangible assets meet certain criteria. SFAS 141
           applies to all business combinations initiated after June 30, 2001
           and for purchase business combinations completed on or after July 1,
           2001. It also requires, upon adoption of SFAS 142, that the Company
           reclassify, if applicable, the carrying amounts of intangible assets
           and goodwill based on the criteria in SFAS 141.

           SFAS 142 requires, among other things, that companies no longer
           amortize goodwill, but instead test goodwill for impairment at least
           annually. In addition, SFAS 142 requires that the Company identify
           reporting units for the purposes of assessing potential future
           impairments of goodwill, reassess the useful lives of other existing
           recognized intangible assets, and cease amortization of intangible
           assets with an indefinite useful life. An intangible asset with an
           indefinite useful life should be tested for impairment in accordance
           with the guidance in SFAS 142. SFAS 142 is required to be applied in
           fiscal years beginning after December 15, 2001 to all goodwill and
           other intangible assets recognized at that date, regardless of when
           those assets were initially recognized. SFAS 142 requires the Company
           to complete a transitional goodwill impairment test six months from
           the date of adoption.

           The Company has elected early adoption of SFAS 142 for the fiscal
           year beginning July 1, 2001. The Company, based upon its transitional
           testing, concluded there was no impairment relating to the net book
           value of its goodwill. Additionally, pursuant to SFAS 142, no
           amortization expense relating to the Company's goodwill was
           recognized for the six months ended December 29, 2001. For the six
           months ended December 29, 2000, amortization of goodwill was
           $220,000.

Note 7.    Risk Management and Derivative Financial Instruments

           Statement of Financial Accounting Standards No. 133, Accounting for
           Derivative Instruments and Hedging Activities (SFAS 133), as amended
           by SFAS No. 137 and SFAS No. 138, establishes accounting and
           reporting standards for derivative instruments, including certain
           derivative instruments embedded in other contracts, and for hedging
           activities. SFAS 133, as amended, requires the Company to recognize
           all derivative instruments on the balance sheet at fair value. If the
           derivative is a hedge, changes in the fair value of derivatives are
           either offset against the change in fair value of assets,
           liabilities, or firm commitments through earnings or recognized in
           other comprehensive income (equity) until the hedged item is
           recognized in earnings. The ineffective portion of a derivative's
           change in fair value is recognized in earnings.

                                                                          Page 9

<PAGE>

           The Company has historically entered into forward exchange contracts
           to reduce the foreign currency exchange risks associated with its
           committed and anticipated lira and Euro denominated purchases, and
           not for speculation. As of December 29, 2001, the Company had no
           foreign exchange contracts.

           The Company had two interest rate swap derivatives designated as cash
           flow hedges at December 29, 2001. The change in the fair market value
           during the current year was a gain of $13,432 net of tax expense, and
           was recognized in Other Comprehensive Loss (equity) at December 29,
           2001. For interest rate swap agreements, increases or reductions in
           interest expense are recognized in the periods in which they accrue.

Note 8.    Line of Credit

           The Company has a revolving credit facility and a line of credit for
           issuance of Documentary Letters of Credit with SouthTrust Bank, N.A.
           Effective July 1, 2001 the Company entered into a Second Amendment
           and Forbearance Agreement ("Second Amendment") relating to its
           original Credit Facility Agreement with SouthTrust. The amendment
           modified the original agreement which provided a $17.5 million credit
           facility and a $15.0 million line for documentary letters of credit.
           The Second Amendment supercedes all terms of the First Amendment
           dated November 13, 2000. The Amended Agreement dated July 1, 2001
           provides a revolving credit facility up to $15.0 million and an
           additional line of credit for issuance of Documentary Letters of
           Credit up to $9.0 million. The availability under the combined
           facility is limited to a borrowing base as defined in the Second
           Amendment and the original Credit Facility Agreement. The Second
           Amendment also changes the maturity date on the credit facility to
           July 31, 2002 from May 31, 2003 per the original Credit Facility
           Agreement.

           Advances under the revolving credit facility and line of credit are
           broken down into two components for the calculation of interest
           expense: the London Interbank Offered Rate (LIBOR) component that
           accrues interest at the LIBOR rate plus 1 1/2% to 2 1/2%, and a base
           rate component that accrues interest at prime plus 1%. The rates are
           scaled based upon the Company's funded debt as defined in the
           original Credit Facility Agreement. Prior to the Second Amendment and
           pursuant to the terms of the First Amendment dated November 13, 2000,
           the LIBOR component accrued interest at the LIBOR rate plus 3%, and
           the base rate component accrued interest at prime plus 1 1/4 %. The
           Company also has in effect interest rate swap derivatives that fix
           the interest rate for advances under the LIBOR component at 7.77% and
           7.79% plus the applicable margin for borrowing levels of $3.0 million
           and $5.0 million, respectively, which expire on June 2, 2002 and June
           2, 2003, respectively. As of December 29, 2001, amounts outstanding
           of $10.5 million were advanced under the LIBOR component at a rate of
           3.46% plus 3%, and $1,630,503 were advanced under the base rate
           component at the prime rate of 4.75% plus 1 1/4%. The facility is
           secured by all the assets of the Company.

           The Credit Facility as amended by the Second Agreement contains
           specific covenants that require, among other things, the Company to
           maintain a specified level of earnings, tangible net worth, and debt
           to equity ratios for each quarter in fiscal year 2002. The Company
           was in violation with the covenants pertaining to specified level of
           earnings for the first and second quarters and the tangible net
           worth requirement as of September 29, 2001 and December 29, 2001,
           pursuant to the terms of the Second Amendment. The Company received
           waivers from SouthTrust Bank in connection with the Company's
           non-compliance on those covenants for periods ended September 29,
           2001 and December 29, 2001.

                                                                         Page 10

<PAGE>

Note 9.    Segment Information

           The Company operates primarily in two segments of business, textile
           equipment ("textile") and laundry equipment and services ("laundry").
           Prior to the acquisition of Wink Davis on August 1, 1997, the Company
           operated only in the textile segment. Corporate operations include
           general corporate expenses, amortization of debt issuance costs,
           interest expense related to the Company's credit facility and
           elimination of intersegment balances. The table below summarizes
           financial data by segment.

<TABLE>
<CAPTION>
                                                    Six Months     Total Textile     Total Laundry
Segment Information:                                Ended Dec.       Segment            Segment       Corporate         Total
                                                  --------------  --------------  ----------------  --------------   ------------
<S>                                               <C>             <C>             <C>               <C>              <C>
         Net Revenues ..........................       2001       $ 16,743,977    $ 10,540,280       $          -    $ 27,284,257
                                                       2000         23,044,788      15,661,778                  -      38,706,566

         (Loss) Earnings before
         Interest & Taxes ......................       2001           (939,360)       (720,418)           (699,926)    (2,359,704)
                                                       2000        *(7,337,805)        163,183            (571,883)    (7,786,505)


         Capital Expenditures ..................       2001             11,243           1,400                  -          12,643
                                                       2000            239,287          10,963                  -         250,250

         Depreciation and Amortization .........       2001            388,627          42,156             122,832        553,615
                                                       2000            489,495         192,171              40,698        722,364

         Interest Expense ......................       2001            633,110           4,019             500,674      1,137,803
                                                       2000            646,911           5,287             505,926      1,158,124


                                                  Three Months     Total Textile     Total Laundry
Segment Information:                                Ended Dec.       Segment            Segment       Corporate         Total
                                                  --------------  --------------  ----------------  --------------   ------------

         Net Revenues ..........................       2001       $  9,887,300    $  5,229,850       $          -    $ 15,107,150
                                                       2000          9,508,158       8,302,527                  -      17,810,685

         (Loss) Earnings  before
         Interest & Taxes ......................       2001           (258,052)       (141,474)           (311,559)      (738,085)
                                                       2000        *(5,383,246)        247,082            (306,133)    (5,442,297)


         Capital Expenditures ..................       2001              3,974              -                   -           3,974
                                                       2000            208,964           2,963                  -         211,927

         Depreciation and Amortization .........       2001            193,578          21,078              61,416        276,072
                                                       2000            241,124          95,529              20,349        357,002

         Interest Expense ......................       2001            368,999           2,809             210,343        582,151
                                                       2000            414,543           4,532             277,645        646,720

         Total Assets:
            December 29, 2001 (unaudited) .....................     38,308,322      15,441,553          (2,976,307)    50,773,568
            June 30, 2001 .....................................     43,338,426      14,570,252          (3,035,591)    54,873,087
</TABLE>

           *    Amount includes one-time loss on settlement of uncommitted
                foreign currency derivatives of $3,925,947 recognized during the
                quarter and six months ended December 2000.

                                                                         Page 11

<PAGE>

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

GENERAL
-------

Speizman Industries, Inc. is a major distributor of specialized industrial
machinery, parts and equipment. The Company operates primarily in two segments,
textile equipment ("textile segment") and laundry equipment and services
("laundry segment"). In the textile segment, the Company distributes
sock-knitting machines, other knitting equipment, automated boarding, finishing
and packaging equipment used in the sock industry, and related parts. In the
laundry segment, the Company sells commercial and industrial laundry equipment,
including the distribution of machines and parts as well as providing
installation and after sales service.

RESULTS OF OPERATIONS
---------------------

Total revenues decreased 15% to $15.1 million for the second quarter ended
December 29, 2001, compared to $17.8 million for the same period last year.
Revenues for the textile segment for the second quarter ended December 2001
increased 4% to $9.9 million, compared to $9.5 million for the same period last
year. The increase in the textile segment was offset by a decrease in the
Company's laundry equipment and services segment of 38% to $5.2 million,
compared to $8.3 million in the same period of the prior fiscal year. For the
six months ended December 2001, total revenues decreased 45% to $27.3 million,
compared with $38.7 million for the same period in the prior year. For the six
months ended December 2001, the Company's revenues for its textile and laundry
segment decreased 28% to $16.7 million, and 34% to $10.5 million, respectively,
compared to the same period in the prior year. The decrease in sales for both
segments is primarily from reduced market demand due to the slowness in the
textile and hospitality industries, as well as the continued downturn in the
U.S. economy.

Gross profit for the second quarter ended December 29, 2001 was $2.1 million, a
reduction of approximately $300,000 from the gross profit in the second quarter
ended December 30, 2000 of $2.4 million. Consolidated gross profit as a
percentage of revenues increased slightly to 13.9% in the second quarter of
fiscal 2002. This compared to a gross profit percentage of 13.5% for the same
period in the prior fiscal period. Gross profit for the textile segment improved
$500,000 primarily from higher gross margins on product in the current period
compared to the prior year's second quarter. The increase in the gross margins
on products in the current period was approximately $1.0 million and was
significantly influenced from higher cost of sales in the prior year resulting
from losses in connection with the utilization of foreign currency contracts in
that period. The improvement in the textile segment's product margins were
offset by lower commission revenue in the current period of $500,000 when
compared to the prior year's second quarter. The improvement in the textile
segment's gross profit was offset by a reduction in the laundry segment's gross
profit of $800,000, of which $650,000 was due to reduced equipment sales, with
the balance due to less contribution generated from services.

Gross profit for the six months ended December 2001 was $3.6 million, a $400,000
reduction in the amount reported in the prior year's six-month period. Gross
profit, as a percentage of revenues, improved to 13.1% for the current six-month
period, compared to 10.2% reported for the prior six-month period. The decrease
in gross profit dollars was attributable primarily from reduced volume in both
segments resulting in a reduction in gross margin contribution of $1.7 million,
a reduction in textile sales commission revenue of $500,000, reduced
contribution in laundry services of $200,000, offset by lower cost of sales in
the current period of $2.3 million relating to the textile group. The lower
costs of sales in the current year of $2.3


                                                                         Page 12

<PAGE>

million as compared to the prior year's six-month period resulted from the
utilization of foreign currency contract during fiscal 2000 that were devalued
because they were originally designated for purchase orders that were
subsequently cancelled or delayed.

Selling expenses for the second quarter ended December 2001 improved to $1.4
million from $1.8 million in the prior fiscal period. As a percentage of
revenues, selling expenses improved slightly to 9.3% in the current fiscal
period from 10.2% for the prior year's second quarter. The improvement in the
selling expenses was a result of both reduction in variable expenses such as
commissions, as well as a reduction of fixed costs including salaries, sales
personnel, and travel related expenses.

Selling expenses year to date have decreased $900,000 compared with the same
period last year. The decrease was primarily due to lower variable expenses such
as commissions, travel, and exhibitions. As a percentage of revenue, selling
expenses were 10.8% compared to 9.9% for the same period last year. The increase
as a percentage of sales is due to selling costs, such as salaried personnel in
the textile segment, being primarily fixed in nature, coupled with a decrease in
textile sales compared with the same period last year.

General and administrative expenses reduced to $1.4 million in the second
quarter, compared with $2.1 million for the same period last year. General and
administrative expenses year-to-date have decreased $1.0 million compared with
the same period last year. The decrease in the current second fiscal quarter and
year-to-date when compared to the same periods in the last fiscal year was
primarily the result of lower overhead costs, including personnel, amortization,
and bad debts. Net amortization expenses were lower primarily due to the Company
ceasing to amortize goodwill in accordance with recent accounting
pronouncements, offset by an increase in the amortization of debt issuance cost
associated with the Company's bank facility that matures on July 31, 2002.

Net interest expense for the current year's second quarter decreased $65,000
compared to the same period last year. The decrease was attributable to lower
average borrowings on the Company's line of credit facility for the current year
period as compared to the same period in the prior year.

Benefit for income tax in the current quarter and six-month period is $280,000
and $1,250,000, respectively. The provision for the quarter ended December 29,
2001 includes a valuation reserve of $220,000 provided on the Company's gross
deferred tax asset of $5.9 million as of December 2001. The Company deemed it
prudent to record a deferred tax valuation allowance as of December 2001 in
light of general economic conditions remaining soft, and more specifically, the
textile industry deteriorating further than initially anticipated in the current
fiscal year.

Net loss for the second quarter was $1.0 million or $0.32 per share both basic
and diluted. This compared with a loss for the same period last year of $3.8
million or $1.15, basic and diluted. Net loss for the six months ended December
2001 was $2.5 million or $0.76 per share, basic and diluted, and compared to a
loss in the prior six-month period of $5.5 million or $1.70 per share, basic and
diluted. The loss in the prior year's second quarter and six months year-to-date
period included a one-time loss on settlement of uncommitted foreign currency
derivative contracts of $3.9 million before tax benefit.

                                                                         Page 13

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

The Company has a revolving credit facility with SouthTrust Bank, N.A. The
agreement with SouthTrust as recently amended, expires on July 31, 2002 and
provides a line of credit up to $15.0 million and an additional line of credit
for issuance of Documentary Letters of Credit up to $9.0 million. The
availability under the combined lines of credit is limited by the percentage of
eligible accounts receivable and inventory determined from time to time by
SouthTrust.

The Company has previously announced that it expected a decline in equipment
bookings and sales through at least June 2002 and that it intended to further
reduce its expenses in an effort to mitigate the adverse effects from the
expected decline in equipment bookings and sales. Subsequent to this
announcement, general economic conditions have remained soft and the textile and
hospitality industry conditions have further deteriorated resulting in even
lower than expected sales, primarily due to reduced volume. This greater than
anticipated decline in sales has also reduced the Company's borrowing base with
respect to its line of credit facility. The Company expects this trend to
continue at least in the short term further adversely affecting the Company's
liquidity. As of February 4, 2002, the Company had borrowings of $11.4 million
and had an unused availability of $600,000 under its credit facility based upon
its borrowing base at that time. Lower than expected sales also adversely
impacted the operations of the Company and its ability to comply with certain
financial covenants in its credit facility. The Company was not in compliance
with certain financial covenants in its credit facility for the second quarter
ended December 2001. The Company received a waiver relating to the covenants
that were in default for the second fiscal quarter ended December 2001 and is
currently in active discussions for the purpose of modifying its covenants for
the balance of its loan term which currently matures on July 31, 2002. In
addition to modifying its existing financial covenants, the Company expects the
bank to require monthly compliance with certain financial covenants and to
increase its borrowing base under the credit facility which the Company expects
will result in additional cash availability for the Company under the facility
of approximately $400,000. However, the Company can not make any assurances
about the ultimate outcome of these discussions.

Amounts outstanding under the line of credit for direct borrowings bear interest
based upon two components: London Interbank Offered Rate (LIBOR) rate plus 1.5%
to 2.5% for a short term fixed period and prime plus 0% to 1% for the non-fixed
period. The rates vary based upon the Company's funded debt as defined in the
loan agreement. The Company has two interest rate swaps that fix the LIBOR
interest rate (exclusive of margin of 250 basis points) at 7.77% and 7.79% for
borrowings of $3.0 million and $5.0 million, respectively, which expire on June
2, 2002 and June 3, 2003, respectively.

Working capital at December 29, 2001 was $3.3 million as compared to $17.3
million at June 30, 2001. The working capital ratio was 1.10 at December 29,
2001 and 1.79 at June 30, 2001. The decrease in working capital was primarily
due to the classification of the Company's debt with SouthTrust Bank of
$12,130,000 as current since the debt facility matures on July 31, 2002.
Excluding the classification of the SouthTrust debt as current, the Company's
working capital ratio would improve to 1.80.

Net cash used in operating activities for the six months ended December 29, 2001
was $769,000. Net cash used in operating activities was primarily due to a net
loss of $2.5 million, a reduction in accounts payable and overdraft of $2.5
million, a non-cash tax benefit of $1,030,000, and an increase in prepaid
expenses of $441,000, partially offset by a reduction in accounts receivable of
$4.3 million, a reduction in inventories of $306,000, an increase in customers
deposits and accrued expenses of $217,000, and non-cash expenses of $850,000.

                                                                         Page 14

<PAGE>

Accounts receivable and accounts payable including bank overdraft decreased at
December 29, 2001 compared to June 30, 2001 primarily from reduced billing and
purchasing activity, respectively, resulting from reduced demand for equipment
in the marketplace.

The increase in prepaid expenses and other current assets was due primarily to a
deposit on equipment purchase orders related to a new installation project in
the laundry segment.

The increase in net deferred taxes of $1,030,000 represented a non-cash benefit
recognized during the six months ended December 2001 of $1,250,000, net of a
valuation allowance of $220,000. The Company believes the net deferred tax
benefit will be recoverable through its normal course of business in the future.

Net cash used in investing activities was approximately $2,000 for the six
months ended December 2001. Net cash provided by financing activities was
$770,000 for the six months ended December 2001, which included borrowings of
$1.2 million from the Company's bank credit facility, offset by principal
payments on long-term debt of $382,000.

The Company has satisfied its cash requirements in the past principally from
cash generated from operations and borrowings under its line of credit facility
with commercial banks. The continued decline in the Company's business has
resulted in limited liquidity due to decreased cash generated from operations
and decreased availability under its current line of credit facility as a result
of a decline in its accounts receivable borrowing base. The Company's ability to
continue to fund its cash requirements, including its net losses, from these
sources of liquidity for the remainder of fiscal 2002 is dependent upon its
ability to generate adequate cash from operations as well as maintaining a
sufficient borrowing base for borrowed funds under its line of credit facility.
Factors such as reduced sales volume, reduced gross margin contribution due to
decreased volume or pricing, the timeliness of collections on current accounts
receivable, and the ability to maintain existing and/or extended payment terms
with certain suppliers will impact the Company's ability to generate cash from
operations. An adverse effect of any one of these factors could further restrict
the Company's liquidity. As of February 4, 2002, $600,000 was available and
unused under the Company's line of credit facility. In the event there is a
decrease in the Company's eligible accounts receivable, which will occur in the
event the equipment bookings continue to decline, or if collections on current
accounts receivable are delayed, availability under this facility will decrease.

The Company's line of credit facility is scheduled to mature on July 31, 2002.
The Company does not have the financial resources to repay this debt and will
therefore need to refinance this debt prior to the maturity date. There is no
assurance that the Company will be able to refinance this obligation with its
existing or another lender on a timely basis, on commercially reasonable terms,
or at all. Additionally, the textile industry has continued to experience
tightened lending practices from traditional financial institutions which may
further hinder the Company's ability to refinance this debt, especially in light
of the Company's recent financial losses.

The Company may need to raise additional funds to become current with its
vendors and other obligations, and to fund losses until it returns to cash flow
positive. If equipment bookings and sales continue to decline resulting in
decreased cash generated from operations, the Company may need capital during
fiscal 2002 in addition to that available under its line of credit facility. The
Company is actively considering other financing options in the event additional
financial resources are needed, including the raising of additional funds
through debt or equity financing or the disposition of assets. There is no
assurance that such funding will be available on commercially reasonable terms
or at all. In the event the Company is unable to obtain additional needed
capital, the Company would be required to significantly reduce its operations,
dispose of assets and/or sell additional securities on terms that could be
dilutive to current stockholders.

                                                                         Page 15

<PAGE>

OUTLOOK
-------

Fiscal 2002 Equipment Bookings - The Company over the past six months
experienced a decline in its equipment bookings. The Company expects this trend
to continue during the next six months in fiscal year 2002 based upon current
market conditions and the Company's existing backlog. In furtherance with the
Company's cost saving initiatives that began in fiscal year 2001, the Company
expects to continue to reduce its expenses to help mitigate the adverse effects
from the decline in equipment bookings.

Hosiery Equipment - Shipments of the new generation closed toe sock knitting
machine produced by Lonati, S.p.A. of Brescia, Italy, the world's largest
manufacturer of hosiery knitting machines, began in mid-March 2001. The new
generation closed toe machines have been commercially accepted and the Company
anticipates they could gradually replace most of the conventional athletic sock
machines in the United States and Canada over the next four years.

Knitted Fabric Equipment - The market demand for seamless actionwear machines
decreased significantly since its peak two years ago. The Company does not feel
that this is the end of the demand for seamless type garments. However, it now
appears that only the large, well-capitalized underwear and lingerie firms who
have significant resources with brand names and direct relationships with major
retail outlets will have the ability to purchase significant quantities of
additional seamless garment machines.

Wink Davis - The Company, through Wink Davis, maintains a strong presence in the
United States industrial laundry segment through its sale of new equipment,
parts and services. Over the past six months, the demand for on premise laundry
equipment has declined significantly. The Company does not feel this is the end
of demand and expects this market segment to improve somewhat in the second half
of the fiscal year 2002. Proposals for larger installation projects continue to
remain active; however, if successful, margins will be slightly lower due to
lower selling prices as a result of increased competition in a relatively tight
market.

Settlement of Litigation - During October 2001, the Company settled for $35,000
a lawsuit filed by Bluegrass Hosiery, Inc., in which Bluegrass alleged that the
Company breached its contract relating to machines sold to Bluegrass.

Other Areas of Development - The Company continually explores opportunities for
additional growth including new relationships with manufacturers that have
competitive product offerings in its existing market channels.

EMPLOYEES
---------

As of December 29, 2001, the Company had 136 full-time domestic employees. The
Company's employees are not represented by a labor union, and the Company has
never suffered an interruption of business as a result of a labor dispute. The
Company considers its relations with its employees to be good.

BACKLOG
-------

As of February 8, 2002, the Company's backlog of unfilled equipment orders was
approximately $13.7 million, which includes an order for $3.7 million that is
contingent upon the customer obtaining financing to satisfy payment. The period
of time required to fill orders varies depending on the model ordered,
manufacturers' production capabilities, and availability of overseas shippers.
The Company typically fills its backlog within 12 months; however, orders
constituting the current backlog are subject to customer cancellation, changes
in delivery and machine performance. As a result, the Company's backlog may not
necessarily be

                                                                         Page 16

<PAGE>

indicative of future revenue and will not necessarily lead to revenues in any
future period. Any cancellation, delay or change in orders which constitute our
current or future backlog may result in lower than expected revenues.

SEASONALITY AND OTHER FACTORS
-----------------------------

There are certain seasonal factors that may affect the Company's business.
Traditionally, manufacturing businesses in Italy close for the month of August,
and the Company's hosiery customers close for one week in July. Consequently, no
shipments or deliveries, as the case may be, of machines distributed by the
Company that are manufactured in Italy are made during these periods which fall
in the Company's first quarter. In addition, manufacturing businesses in Italy
generally close for two weeks in December, during the Company's second quarter.
Fluctuations of customer orders or other factors may result in quarterly
variations in net revenues from year to year.

EFFECTS OF INFLATION AND CHANGING PRICES
----------------------------------------

Management believes that inflation has not had a material effect on the
Company's operations.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
---------------------------------------------------------

The Company is exposed to market risks, which include changes in U.S. and
international interest rates as well as changes in foreign currency exchange
rates as measured against the U.S. dollar and each other. The Company attempts
to reduce these risks by utilizing financial instruments, pursuant to Company
policies.

The value of the U.S. dollar affects the Company's financial results. Changes in
exchange rates may positively or negatively affect the Company's revenues (as
expressed in U.S. dollars), cost of sales, gross margins, operating expenses,
and retained earnings. Where the Company deems it prudent, it engages in hedging
those transactions aimed at limiting in part the impact of currency
fluctuations. The Company has historically entered into forward exchange
contracts to protect against currency exchange risks associated with the
Company's anticipated and firm commitments of lira-denominated purchases for
resale.

These hedging activities provide only limited protection against currency
exchange risks. Factors that could impact the effectiveness of the Company's
programs include volatility of the currency markets, and availability of hedging
instruments. All currency contracts that are entered into by the Company are
components of hedging programs and are entered into for the sole purpose of
hedging an existing or anticipated currency exposure, not for speculation.
Although the Company maintains these programs to reduce the impact of changes in
currency exchange rates, when the U.S. dollar sustains a strengthening position
against the lira in which the Company has anticipated purchase commitments, the
Company's earnings could be adversely affected if future sale prices cannot be
increased because of market pressures. The Company had no foreign exchange
contracts outstanding as of December 29, 2001.

The Company is also subject to interest rate exposure on $12.1 million of debt
outstanding at December 29, 2001 that was priced at interest rates that float
with the market. The Company has interest rate swaps to hedge adverse interest
rate changes on a portion of this debt; specifically for borrowing levels of
$3.0 million and $5.0 million, interest is fixed at 7.77% and 7.79%,
respectively, exclusive of a margin for the bank at 250 basis points. These
swaps expire on June 2, 2002 and June 2, 2003, respectively. A one hundred basis
point change in interest rates on the average variable portion on the Company's
borrowings for the six months ended December 2001 would have impacted net
interest expense by $19,000. Reference is made to Note 8 for additional
information.

                                                                         Page 17

<PAGE>

NOTE REGARDING PRIVATE SECURITIES LITIGATION REFORM ACT
-------------------------------------------------------

This report contains forward-looking statements that have been made pursuant to
the provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are based on current expectations, estimates, and
projections about Speizman's industry, management beliefs, and certain
assumptions made by Speizman's management. Words such as "anticipates,"
"expects," "intends," "plans," "believes," "seeks," "estimates," variations of
such words, and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties, and assumptions
that are difficult to predict; therefore, actual results may differ materially
from those expressed or forecasted in any such forward-looking statements. Such
risks and uncertainties include those set forth herein under the caption "Other
Risk Factors." Unless required by law, the Company undertakes no obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events, or otherwise. However, readers should carefully
review the risk factors set forth in other reports and documents that the
Company files from time to time with the Securities and Exchange Commission.

OTHER RISK FACTORS
------------------

Risks Related to Speizman's Bank Debt

As of February 4, 2002, Speizman had $11.4 million in borrowings under its line
of credit facility with a commercial bank. The scheduled maturity date for this
facility is July 31, 2002. The Company currently does not have the financial
resources to repay this debt when it becomes due and will therefore need to
refinance this debt prior to the maturity date. There is no assurance that the
Company will be able to refinance this debt with its existing or another lender
on a timely basis, on commercially reasonable terms, or at all. Additionally,
the textile industry has continued to experience tightened lending practices
from traditional financial institutions which may further hinder Speizman's
ability to refinance this debt, especially in light of Speizman's recent
financial losses.

Speizman was in default under the financial covenants in its line of credit
facility for each of the first and second quarters of fiscal 2002. Speizman has
received waivers with respect to these defaults that occurred at each respective
quarter end. Speizman is currently engaged in negotiations with its lender to
modify the financial covenants in its line of credit facility, measure
compliance with these covenants on a monthly basis, and increase the borrowing
base. Speizman does not believe that it can comply with the financial covenants
in its facility for the third and fourth quarter of fiscal 2002 without
modification. If Speizman defaults under its line of credit facility, the lender
could accelerate the payment of amounts outstanding. If this were to happen,
Speizman, if unable to refinance, would be unable to repay the loan. The
occurrence of an event of default under Speizman's line of credit facility
entitles the lender to exercise certain rights, including the right to declare
all amounts outstanding immediately due and payable, and to exercise certain
remedial action.

If Speizman is Unable to Obtain Additional Needed Capital, Its Business Will be
Harmed

Speizman intends to use its available cash and existing financing arrangements
to fund its losses, working capital requirements and minimal capital
expenditures. Speizman may need to raise additional funds to become current with
its vendors and other obligations, and to fund losses until it returns to cash
flow positive. If equipment bookings and sales continue to decline resulting in
decreased cash generated from operations, Speizman may need capital during
fiscal 2002 in addition to that available under its line of credit facility.
There can be no assurance that additional needed financing will be available on
terms acceptable to Speizman, or at all. If additional needed funds are not
available, Speizman's business could

                                                                         Page 18

<PAGE>

be detrimentally impacted. If Speizman is unable to obtain needed additional
capital, it would be required to significantly reduce its operations, dispose of
assets and/or sell additional securities on terms that could be dilutive to
current stockholders.

Speizman's Ability to Return to Profitability

Speizman incurred a net loss of $1.4 million in the first quarter of fiscal
2002, and $1.0 million in the second quarter of fiscal 2002. In addition,
Speizman incurred net losses of $5.9 million in fiscal 2001 principally as a
result of losses associated with foreign currency derivatives. For the six
months ended December 29, 2001, Speizman's use of cash in operating activities
was $770,000. Although Speizman intends to further reduce its expenses, the
Company will need to generate increases in its revenues to return to
profitability. The Company expects its losses to continue at least through
fiscal 2002 based upon its current outlook.

Speizman's Large Amount of Debt Could Negatively Impact its Business and its
Stockholders

Principally as a result of losses funded over the past six months ended December
2001 and fiscal year 2001, the Company is burdened with a large amount of debt.
Speizman's large amount of debt could negatively impact its stockholders in many
ways, including:

     .    reducing funds available to support its business operations and for
          other corporate purposes because portions of cash flow from operations
          must be dedicated to the payment of on its existing debt;

     .    impairing its ability to obtain additional financing for working
          capital, capital expenditures, acquisitions or general corporate
          purposes;

     .    increasing vulnerability to increases in interest rates;

     .    hindering its ability to adjust rapidly to changing market conditions;
          and

     .    making it more vulnerable to a further downturn in general economic
          conditions or in its business.

Relationship with Foreign Suppliers

The majority of Speizman Industries' suppliers for parts and equipment are based
in foreign countries primarily concentrated in Italy. There can be no assurance
that Speizman will not encounter significant difficulties in any attempt to
enforce any provisions of the agreements with foreign manufacturers, or any
agreement that may arise in connection with the placement and confirmation of
orders for the machines manufactured by foreign manufacturers or obtain an
adequate remedy for a breach of any such provision, due principally that they
are foreign companies.

Dependence on Lonati

The Company's operations are substantially dependent on the net revenues
generated from the sale of sock knitting and other machines manufactured by both
Lonati and Santoni, S.r.l., Brescia, Italy, one of Lonati's subsidiaries, and
the Company expects this dependence to continue. Sales of sock knitting and
other machines manufactured by Lonati and Santoni generated an aggregate of
approximately 30.4% and 53.5% of the Company's net revenues in fiscal 2001 and
fiscal 2000, respectively. The Company amended its

                                                                         Page 19

<PAGE>

agreement with Lonati for the sale of its machines in March 2001 to be the
exclusive agent through December 31, 2003. The Company and Lonati entered into
their present agreements for the sale of Lonati machines in Canada in January
1992 and for Mexico in 1997, which are renewable annually. The Company has acted
as the United States sales agent and distributor for certain machines
manufactured by Lonati continuously since 1982. The cost to the Company of
Lonati machines, as well as the delivery schedule of these machines, are at the
discretion of Lonati. Management believes that the Company's relationship with
Lonati will continue to be strong as long as the Company generates substantial
sales of Lonati machines; however, there can be no assurance that the Company
will be able to do so or that the Company's relationship with Lonati will
continue or will continue on its present terms. Any decision by Lonati to sell
machines through another distributor or directly to purchasers would have a
material adverse effect on the Company.

Machine Performance and Delayed Deliveries

During fiscal 2000 and the early part of fiscal year 2001, the Company
experienced issues with machine performance and delays from Lonati in shipments
of closed toe knitting machines and Santoni undergarment knitting machines. The
Company experienced material cancellations or postponements of orders due to
these delays and performance issues. There can be no assurance that delayed
deliveries in the future or issues with machine performance on newer technology
will not result in the loss or cancellation of significant orders. The Company
also cannot predict situations in Italy such as potential employee strikes or
political developments which could further delay deliveries or have other
adverse effects on the business of Lonati and the other Italian manufacturers
represented by the Company.

Foreign Currency Risk

Historically, Speizman Industries' purchases of foreign manufactured machinery
and spare parts for resale are denominated in Italian lira. For purchases of
machines that were denominated in Italian lira or Euro dollars, Speizman
generally purchased lira hedging contracts to compensate for anticipated dollar
fluctuations; however, during fiscal year 2001, the Company experienced adverse
effects utilizing lira hedging contracts for orders that were postponed or
delayed. Prior to fiscal year 2001 and for approximately 30 years, the Company
did not experience any adverse effect from utilizing lira-hedging contracts.
During fiscal year 2001, and in light of newer technology that was being
delivered by Lonati represented by its newer version closed toe single cylinder
sock knitting machine, and with previous experiences of delays associated with
the development of its previous generation closed toe machine, the Company
arranged with Lonati and its affiliates to purchase its products for resale in
U.S. dollars. Speizman's arrangement to buy in U.S. dollars with Lonati
contractually ends on April 30, 2002. The Company had no foreign exchange
contracts outstanding as of December 29, 2001. In the future, for purchases of
machines that are supplied by other manufacturers that are denominated in
Italian lira or Euro dollars, Speizman Industries feels its current practices
enable the Company to adjust sales prices, or to commit to lira hedging
contracts that effectively compensate for anticipated dollar fluctuations.

Additionally, international currency fluctuations that result in substantial
price level changes could impede or promote import/export sales and
substantially impact profits. Speizman is not able to assess the quantitative
effect of such international price level changes could have upon Speizman
Industries' operations. There can be no assurance of fluctuations and foreign
exchange rates will not have an adverse effect on Speizman Industries' future
operations. All of Speizman Industries' export sales originating from the United
States are made in U.S. dollars.

                                                                         Page 20

<PAGE>

Industry Conditions

The Company's business is subject to all the risks inherent in acting as a
distributor including competition from other distributors and other
manufacturers of both textile and laundry equipment, as well as the termination
of profitable distributor-manufacturer relationships.

The Company's laundry equipment segment is subject to the risks associated with
new construction in the hospitality industry. Currently, there is a slowdown in
construction of new hotels due to excess room availability as a whole. This as
well as a general slowdown in the U.S. economy recently reduced demand for new
equipment product offered by the Company.

The textile segment is subject to the risks associated with certain categories
in the textile industry, specifically, for socks, underwear, and actionwear
garments. The textile industry risks relating to socks, underwear, and
actionwear garments include the impact of style and consumer preference changes.
These factors may contribute to fluctuations in the demand for the Company's
sock knitting and packaging equipment and knitted fabric equipment products.
There is a slowdown in underwear and actionwear garments that commenced during
the second half of the last fiscal year. Currently, there also appears to be a
downturn in the sock industry.


Nasdaq Listing

The Company's common stock has been listed on the Nasdaq SmallCap Market since
March 20, 2001 and was listed on the Nasdaq National Market System from October
1993 to March 19, 2001. The Company's continual listing of its common stock on
the Nasdaq SmallCap Market is subject to certain criteria which includes a
minimum bid of $1.00. The Company's stock has been trading below $1.00 for the
past 24 trading days as of February 6, 2002. The Company's failure to maintain a
minimum bid price of $1.00 for 30 consecutive trading days will cause the
Company to be out of compliance with the Nasdaq SmallCap minimum bid
requirement. Upon official notification by Nasdaq regarding the non-compliance
with the minimum bid requirement, the Company will have 90 calendar days to
regain compliance for the minimum bid requirement, which involves maintaining a
closing bid price of at least $1.00 for a minimum period of 10 consecutive
trading days. The Company may also request an appeal with Nasdaq if it fails to
regain compliance within the 90-day period. However, no assurance can be made
about the outcome of such appeal. If the Company loses its Nasdaq SmallCap
Market status, its common stock might trade in the OTC - Bulletin Board, which
is viewed by most investors as a less desirable marketplace. In such event, the
market price of the common stock may be adversely impacted and a stockholder may
find it difficult to dispose, or obtain accurate quotations as to the market
value, of the Company's common stock.

                                                                         Page 21

<PAGE>

                           PART II. OTHER INFORMATION

Item 6.   Exhibits and reports on Form 8-K

          (a)   Exhibits:

                10(a).  Certificate of Amendment of Certificate of Incorporation
                        of Speizman Industries, Inc. dated January 7, 2002.

          (b)   Reports on Form 8-K:

                None.

                                                                         Page 22

<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.

                                                   SPEIZMAN INDUSTRIES, INC.
                                                         (Registrant)




Date:    February 12, 2002                        /s/ Robert S. Speizman
                                                  ------------------------------
                                                      Robert S. Speizman
                                                      President

Date:    February 12, 2002                        /s/ John C. Angelella
                                                  ------------------------------
                                                      John C. Angelella
                                                      CFO/Secretary-Treasurer

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