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

                                   FORM 10-Q

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

For the quarterly period ended September 26, 1997

                                      or

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


For the transition period from ____________ to ___________.


Commission File Number 1-11907


                          COINMACH LAUNDRY CORPORATION
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

               DELAWARE                                     11-3258015
     (STATE OR OTHER JURISDICTION OF                    (I.R.S. EMPLOYER
     INCORPORATION OR ORGANIZATION)                     IDENTIFICATION NO.)

     55 LUMBER ROAD, ROSLYN, NEW YORK                        11576
  (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                 (ZIP CODE)

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:   (516) 484-2300


INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED
TO BE FILED BY SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT
WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING
REQUIREMENTS FOR THE PAST 90 DAYS.

YES  X  NO __.
    ---       

AS OF THE CLOSE OF BUSINESS ON NOVEMBER 6, 1997, COINMACH LAUNDRY CORPORATION
HAD OUTSTANDING 10,004,278 SHARES OF CLASS A COMMON STOCK, PAR VALUE $.01 PER
SHARE (THE "COMMON STOCK"), AND 480,648 SHARES OF NON-VOTING CLASS B COMMON
STOCK, PAR VALUE $.01 PER SHARE (THE "NON-VOTING COMMON STOCK").
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

                                     INDEX
                                     -----

PART I.

Financial Information                                                   Page No.
---------------------                                                   --------
 
Item 1. Financial Statements
 
   Condensed Consolidated Balance Sheets-
   September 26, 1997 (Unaudited) and March 28, 1997                           3
 
   Condensed Consolidated Statements of Operations (Unaudited) -
   Three and Six Months Ended September 26, 1997 and September 27, 1996        4
 
   Condensed Consolidated Statements of Cash Flows (Unaudited) -
   Three and Six Months Ended September 26, 1997 and September 27, 1996        5
 
   Notes to Condensed Consolidated Financial Statements                     6-10
 
Item 2. Management's Discussion and Analysis of Financial Condition
        and Results of Operations                                          11-15
 
PART II.
 
Other Information                                                             16
-----------------

Item 1. Legal Proceedings

Item 2. Changes in Securities

Item 3. Defaults Upon Senior Securities

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

Item 5. Other Information

Item 6. Exhibits and Reports on Form 8-K

Signature Page                                                                17
--------------                                                       

                                      -2-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------


PART I.  FINANCIAL INFORMATION
         ---------------------

         ITEM 1.  FINANCIAL STATEMENTS
         -------  -------------------- 



                     CONDENSED CONSOLIDATED BALANCE SHEETS
                     -------------------------------------
                           (In thousands of dollars)

                                                        September      March
                                                         26, 1997    28, 1997/1/
                                                       -----------   -----------
                                                       (Unaudited)
ASSETS:
 
Cash and cash equivalents                               $ 16,815      $ 14,729
Receivables, net                                           8,633         6,894
Inventories                                               12,456         7,959
Prepaid expenses                                           3,728         3,170
Advance rental payments                                   47,540        38,472
Property and equipment, less accumulated                              
   depreciation of $56,565 and $42,017                   130,348       112,116
Contract rights, less accumulated                                     
   amortization of $29,358 and $19,815                   217,371       180,557
Goodwill, less accumulated amortization of                            
   $8,956 and $5,574                                     109,027        95,771
Other assets                                              14,441        13,253
                                                        --------      --------
Total assets                                            $560,359      $472,921
                                                        ========      ========
                                                                      
LIABILITIES AND STOCKHOLDERS' EQUITY:                                 
Accounts payable                                        $  9,972      $  8,941
Accrued commissions                                       13,065        10,573
Accrued interest                                          10,871         9,712
Other accrued expenses                                    12,795         8,996
Deferred income taxes                                     78,803        65,650
11 3/4% Senior Notes                                     196,655       196,655
Credit facility                                          203,250       130,000
9 7/8% promissory note                                    15,000        15,000
Other long-term debt                                       3,619         3,831
                                                                      
Stockholders' equity:                                                 
  Common stock and capital in excess of par value         53,810        53,265
  Notes receivable from management                          (439)         (439)
  Accumulated deficit                                    (37,042)      (29,263)
                                                        --------      --------
Total stockholders' equity                                16,329        23,563
                                                        --------      --------
                                                                      
Total liabilities and stockholders' equity              $560,359      $472,921
                                                        ========      ========

   The accompanying notes are an integral part of these financial statements.
___________

1.  The March 28, 1997 Balance Sheet has been derived from the audited financial
    statements as of that date.

                                      -3-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                -----------------------------------------------
                                  (UNAUDITED)
                                  -----------
                (In thousands of dollars, except per share data)


<TABLE>
<CAPTION>
                                             Three Months Ended               Six Months Ended
                                       ------------------------------  ------------------------------
                                       September 26,   September 27,   September 26,   September 27,
                                            1997            1996            1997            1996
                                       --------------  --------------  --------------  --------------
<S>                                    <C>             <C>             <C>             <C>
REVENUES                                    $ 77,702        $ 46,506        $149,797        $ 94,446
 
COSTS AND EXPENSES:
Laundry operating expenses                    52,074          31,016         100,310          63,596
General and administrative expenses            1,428           1,082           2,917           2,123
Depreciation and amortization                 18,105          10,382          34,580          20,192
Stock-based compensation charge                  400           1,460             545           1,460
                                            --------        --------        --------        --------
                                              72,007          43,940         138,352          87,371
                                            --------        --------        --------        --------
 
OPERATING INCOME                               5,695           2,566          11,445           7,075
 
INTEREST EXPENSE, NET                         11,066           6,001          21,129          12,142
                                            --------        --------        --------        --------
 
LOSS BEFORE INCOME TAXES                      (5,371)         (3,435)         (9,684)         (5,067)
                                            --------        --------        --------        --------
 
PROVISION (BENEFIT) FOR
 INCOME TAXES:
Currently payable                                100             100             150             105
Deferred                                      (1,205)         (1,300)         (2,055)         (1,750)
                                            --------        --------        --------        --------
                                              (1,105)         (1,200)         (1,905)         (1,600)
                                            --------        --------        --------        --------
NET LOSS                                     ($4,266)        ($2,235)        ($7,779)        ($3,467)
                                            ========        ========        ========        ========
 
NET LOSS PER SHARE                             ($.41)          ($.23)          ($.74)          ($.43)
                                            ========        ========        ========        ========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                      -4-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                -----------------------------------------------
                                  (UNAUDITED)
                                  -----------
                           (In thousands of dollars)
<TABLE>
<CAPTION>
                                                                          Six Months Ended
                                                                          ----------------
                                                              September 26, 1997   September 27, 1996
                                                              -------------------  -------------------
<S>                                                           <C>                  <C>
OPERATING ACTIVITIES:
 Net loss                                                          ($7,779)             ($3,467)
 Adjustments to reconcile net loss to net cash                    
   provided by operating activities:                              
   Depreciation and amortization                                    34,580               20,192
   Deferred income taxes                                            (2,055)              (1,750)
   Stock-based compensation charge                                     545                1,460
   Amortization of debt discount and debt issuance costs               351                  261
 Increase or decrease in operating assets and liabilities,        
     net of business acquired:                                    
     Increase in other assets                                       (1,182)              (1,216)
     Decrease (increase) in receivables, net                            88                  (63)
     Increase in inventories and prepaid expenses                   (2,204)              (1,177)
     Decrease in accounts payable                                   (1,493)                (537)
     Increase in accrued interest                                    1,159                  996
     Increase in accrued expenses, net                                 376                  688
                                                                  --------             --------
 Net cash provided by operating activities                          22,386               15,387
                                                                  --------             --------
                                                                  
INVESTING ACTIVITIES:                                             
 Additions to property and equipment                               (18,940)             (12,555)
 Advance rental payments to location owners                         (6,660)              (4,872)
   Additions to net assets related to acquisitions of             
       businesses                                                  (66,300)             (17,623)
                                                                  --------             --------
 Net cash used for investing activities                            (91,900)             (35,050)
                                                                  --------             --------
                                                                  
FINANCING ACTIVITIES:                                             
Debt transactions:                                                
 Net repayments of bank and other borrowings                          (262)                (136)
 Deferred debt issuance costs                                         (900)                 (90)
 Proceeds from credit facility, net of repayments                   73,250                   --
 Principal payments on capitalized lease obligations                  (488)                (229)
Equity transactions:                                              
 Proceeds from issuance of common stock                                 --               52,017
 Redemption of preferred stock                                          --              (19,207)
 Dividend paid-preferred stock                                          --                  (21)
                                                                  --------             --------
     Net cash provided by financing activities                      71,600               32,334
                                                                  --------             --------
     Net increase in cash and cash equivalents                       2,086               12,671
                                                                  
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                      14,729               19,858
                                                                  --------             --------
CASH AND CASH EQUIVALENTS, END OF PERIOD                          $ 16,815             $ 32,529
                                                                  ========             ======== 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW  INFORMATION:                                                     
 Interest paid                                                    $ 19,628             $ 11,131
                                                                  ========             ========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                      -5-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.  DESCRIPTION OF BUSINESS

     Coinmach Laundry Corporation ("Coinmach Laundry"), a Delaware corporation,
through its wholly-owned subsidiaries (collectively, the "Company"), is the
leading supplier of out-sourced coin-operated laundry equipment services for
multi-family housing properties in the United States.  The Company's business
involves leasing laundry rooms from building owners and property management
companies, installing and servicing the laundry equipment and collecting
revenues generated from laundry machines.  On September 26, 1997, the Company
owned and operated approximately 417,000 coin-operated washers and dryers in
approximately 42,000 locations on routes throughout the United States and in 151
retail laundromats located throughout Texas.

2.  BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements of
the Company have been prepared in conformity with generally accepted accounting
principles ("GAAP") for interim financial reporting and pursuant to the rules
and regulations of the Securities and Exchange Commission.  Accordingly, such
financial statements do not include all of the information and footnotes
required by GAAP for complete financial statements.  GAAP requires the Company's
management to make estimates and assumptions that affect the amounts reported
therein.  Actual results could vary from such estimates.  The interim results
presented herein are not necessarily indicative of the results to be expected
for the entire year.

     In the opinion of management of the Company, these unaudited condensed
consolidated financial statements contain all adjustments of a normal recurring
nature necessary for a fair presentation of the financial statements for the
interim periods presented.

     These unaudited condensed consolidated financial statements should be read
in conjunction with the audited consolidated financial statements included in
Coinmach Laundry's Annual Report on Form 10-K for the year ended March 28, 1997.

3.  LOSS PER SHARE

     Loss per share for each of the three and six month periods ended September
26, 1997, was calculated based upon the weighted average aggregate number of
shares of Common Stock and Non-Voting Common Stock outstanding, which was
10,484,926 during such period.  Loss per share for the three and six month
periods ended September 27, 1996 was calculated based upon the weighted average
aggregate number of shares of Common Stock and Non-Voting Common Stock
outstanding, which was 9,742,573 and 7,980,134, respectively during such
periods.

     In February 1997, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 128 "Earnings Per Share" ("FAS
128"). This standard changes the method of calculating earnings per share and
will be effective for periods ending after December 15, 1997.  Application of
FAS 128 to periods ending prior to December 15, 1997 is prohibited; however,
when adopted, all prior period earnings per share data presented will be
required to be restated to conform with the new standard.  The Company has
determined that the impact of FAS No. 128 will not have a material effect on the
calculation of earnings per share.

4.  LONG-TERM DEBT

     On September 26, 1997, the outstanding long-term debt of Coinmach Laundry
and Coinmach Corporation ("Coinmach"), a wholly-owned subsidiary of Coinmach
Laundry, consisted of (a) approximately $196.7 million of 11 3\4% Senior
Notes due 2005 (the "Senior Notes"), issued by Coinmach, (b) $187.3 million of
term loans, (c) $16.0 million of revolving loans and (d) a $15.0 million
9 7/8% promissory note due 2004 issued by Coinmach

                                      -6-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

4. LONG-TERM DEBT (continued)
 
Laundry (the "Kwik Wash Note").  The outstanding term loans and revolving loans
were made pursuant to a senior financing arrangement obtained by the Company in
January 1997, which consists of a $190 million term loan facility and a $70
million revolving credit facility (as amended, the "Credit Facility").

     On October 8, 1997, Coinmach completed the private placement (the "Bond
Offering") of $100 million aggregate principal amount of its 11 3/4% Series
C Notes due 2005 (the "Series C Notes") on substantially identical terms as its
outstanding Senior Notes.  The gross proceeds from the Bond Offering were
$109.875 million, of which $100.0 million represented the payment of principal
and $9.875 million represented the payment of a premium for the Series C Notes.
Coinmach used approximately $105.4 million of the net proceeds from the Bond
Offering to repay indebtedness outstanding under the Credit Facility. After
giving effect to such repayment of indebtedness, the aggregate outstanding
indebtedness under the Credit Facility is $97.9 million, as of November 10,
1997. See Note 7-"Subsequent Events."

     Indebtedness under the Credit Facility is secured by all of the Company's
real and personal property.  Coinmach Laundry has guaranteed the indebtedness
under the Credit Facility and pledged to Bankers Trust Company, as Collateral
Agent, its interests in all of the issued and outstanding shares of capital
stock of Coinmach.  In addition to certain terms and provisions, events of
default, and customary restrictive covenants and agreements, the Credit Facility
and the indenture governing the Senior Notes contain certain covenants
including, but not limited to, a maximum leverage ratio, a minimum consolidated
interest coverage ratio, and limitations on indebtedness, capital expenditures,
advances, investments and loans, mergers and acquisitions, dividends, stock
issuances and transactions with affiliates.  Also, the Senior Notes and the
Credit Facility limit Coinmach's ability to pay dividends.

5.  STOCKHOLDERS' EQUITY

 a.  INITIAL PUBLIC OFFERING

     On July 23, 1996, Coinmach Laundry completed its initial public offering
(the "Offering") of 4,120,000 shares of Common Stock at a price of $14.00 per
share.  Coinmach Laundry's registration statement for 4,000,000 shares of Common
Stock was filed with the Securities and Exchange Commission (the "Commission")
on May 13, 1996 and subsequently declared effective by the Commission on July
17, 1996.  On July 18, 1996, Coinmach Laundry filed with the Commission an
additional registration statement on Form S-1 with respect to the registration
of an additional 120,000 shares of Common Stock, which registration statement
was effective upon filing.

     In connection with the Offering, the underwriters were granted a 30-day
option to purchase up to an aggregate of 618,000 additional shares of Common
Stock to cover over-allotments (the "Over-Allotment Option"), which Over-
Allotment Option was exercised on August 16, 1996 with respect to the purchase
of an additional 63,642 shares of Common Stock.

     Proceeds from the Offering were approximately $54.5 million (after giving
effect to the exercise of the Over-Allotment Option), after underwriting
discounts and commissions and before expenses.  After giving effect to the
redemption of the Preferred Stock (as described below), proceeds from the
Offering were approximately $35.3 million, before expenses.

     Prior to the Offering, Coinmach Laundry issued, in privately negotiated
transactions, 79,029 shares of its Class B common stock to certain members of
management.  Coinmach Laundry recorded a stock based compensation charge in an
amount of approximately $887,000, attributable to the issuance of such stock.
In addition, in July 1996 approximately $103,000 of receivables relating to
loans to management in connection with

                                      -7-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

5. STOCKHOLDERS' EQUITY (continued)

prior purchases of Coinmach Laundry's common stock were forgiven and was
accounted for as a stock-based compensation charge.

 b.  RECLASSIFICATION AND STOCK SPLIT

     In connection with the Offering, Coinmach Laundry approved a
reclassification (the "Reclassification") of all of its capital stock, pursuant
to which all seven classes of the previously issued and outstanding capital
stock of Coinmach Laundry prior to the Offering were converted into a class of
preferred stock, a class of voting common stock and a class of non-voting common
stock.  As part of the Reclassification, holders of Coinmach Laundry's Class A
common stock, Class E common stock and Class F common stock immediately prior to
the Offering (collectively, the "Preference Shares") also received a
distribution consisting of shares of Common Stock and shares of Series A
preferred stock, par value $.01 per share (the "Preferred Stock") representing
an amount equal to the sum of: (a) preferred dividends on such Preference Shares
in an amount equal to the accrued yield (at a rate of 8% per annum, compounded
quarterly) on the original investment in such Preference Shares through July 23,
1996; and (b) an amount equal to the original investment in such Preference
Shares.  Holders of Preference Shares who were members of the Company's
management received an aggregate of 28,425 shares of Common Stock, and holders
of the Preference Shares who were not members of the Company's management
received an aggregate of 1,000 shares of Preferred Stock.  In connection with
the Reclassification, Coinmach Laundry also approved an approximate 23-to-1
stock split (the "Stock Split") payable to shareholders of record of Coinmach
Laundry on July 12, 1996.

 c.  REDEMPTION OF PREFERRED STOCK

     Immediately following the Offering, approximately $19.2 million of the
proceeds of the Offering were used by the Company to retire all of the issued
and outstanding shares of Preferred Stock.

 d.  STOCK OPTIONS

     Prior to the Offering, the Company adopted the 1996 Employee Stock Option
Plan (as amended and restated, the "Stock Option Plan") which provides that the
Company may grant options for the purchase of up to 1,109,147 shares of Common
Stock to key employees of the Company over a period of up to ten years.  The
Company may grant incentive stock options or options which do not qualify as
incentive stock options at an exercise price per share not less than 100% of the
fair market value of the Common Stock on the date of grant.  All options granted
under the Stock Option Plan vest over four years in five equal installments (20%
vest immediately on the date of grant and the remainder vest over a four year
period) and expire ten years from the date of grant.

     The Company has granted 246,250 options to various employees of the Company
pursuant to the Stock Option Plan, through September 26, 1997.

     On July 23, 1996, in connection with the Offering, Coinmach Laundry granted
certain non-qualified options (the "Options") to certain members of management
(collectively, the "Option Holders") to purchase up to 735,618 shares of Common
Stock at 85% of the initial offering price of the Common Stock.  On September
17, 1996, for the purpose of preserving the Option Holders' percentage interest
of Common Stock represented by the Options (which percentage interest was
decreased as a result of the exercise of the Over-Allotment Option), Coinmach
Laundry granted to the Option Holders additional non-qualified stock options to
purchase up to 3,819 shares of Common Stock (the "Additional Options").  The
Options and Additional Options vest in equal annual installments

                                      -8-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

5. STOCKHOLDERS' EQUITY (continued)

(20% vest immediately on the date of grant and the remainder over a four year
period) commencing on July 23, 1996, the effective date of the Offering.  With
respect to Options and Additional Options granted to employees of the Company,
the Company will record the difference between the exercise price and the
initial offering price of Common Stock as a stock-based compensation charge over
the applicable four year vesting period.

     On September 17, 1996, Coinmach Laundry granted to certain directors, each
of whom was appointed by the Board of Directors of Coinmach Laundry on such date
to serve as independent directors, options entitling each such director to
purchase up to 60,000 shares of Common Stock (the "Independent Director
Options").  The Independent Director Options vest in equal annual installments
(25% vest immediately on the date of grant and the remainder vest over a three
year period), commencing on September 17, 1996, and entitle each such director
to purchase shares of Common Stock at the initial public offering price of the
Common Stock.  The Company will record the difference between the exercise price
of the Independent Director Options and the fair market value of the Common
Stock on September 17, 1996 as a stock-based compensation charge over the
applicable three year vesting period.

     On September 5, 1997, Coinmach Laundry granted certain non-qualified
options (the "1997 Options") to certain members of management to purchase up to
200,000 shares of Common Stock at an exercise price of $11.90 per share of
Common Stock.  The 1997 Options vest in equal annual installments (20% vest
immediately on the date of grant and the remainder vest over a four year period)
commencing on September 5, 1997.  The Company will record the difference between
the exercise price of the 1997 Options and the fair market value of Common Stock
on September 5, 1997 as a stock-based compensation charge over the applicable
four year vesting period.

     For the six months ended September 26, 1997 and September 27, 1996, the
Company recorded a stock-based compensation charge of approximately $545,000 and
$470,000 respectively, relating to the Options, the Additional Options, the
Independent Director Options and the 1997 Options.  See Note 7-"Subsequent
Events" for a discussion of Coinmach Laundry's proposed offering of 2,500,000
shares of Common Stock.

6.  ACQUISITIONS

     On January 8, 1997, Coinmach acquired (the "Kwik Wash Acquisition") 100% of
the outstanding voting securities of the partners of Kwik Wash Laundries, L.P.
("Kwik Wash") for $125 million in cash and the Kwik Wash Note.  The Kwik Wash
Acquisition enabled the Company to provide coin-operated laundry equipment
services to multi-family housing properties in Texas, Louisiana, Arkansas and
Oklahoma and to operate 150 retail laundromats throughout Texas.

     On April 23, 1997, Coinmach completed the acquisition and merger (the
"Reliable Acquisition") of Reliable Holding Corp. ("Reliable") and its
subsidiaries, Reliable Laundry Service Inc., Girard-Hopkins Acquisition Corp.,
Maquilados Automaticas S.A. de C.V., and Automatica S.A. de C.V. with and into
Coinmach for $44 million in cash.  The Reliable Acquisition provided the Company
with a strong foothold in the California market and an entry into the northern
Mexican market.

     On July 17, 1997, Coinmach acquired 100% of the outstanding voting
securities of National Coin Laundry Holding, Inc., an Ohio Corporation ("NCLH")
and National Laundry Equipment Company, an Ohio corporation ("NLEC") which is
the parent of National Coin Laundry, Inc., an Ohio corporation ("NCL") and
substantially all of the assets of Whitmer Vend-O-Mat Laundry Services, Inc., an
Indiana corporation ("Whitmer").  Coinmach acquired (the "National Coin
Acquisition") NCLH, NLEC, NCL and Whitmer for an aggregate purchase price of

                                      -9-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

6. ACQUISITION (continued)

approximately $19.0 million in cash.  The National Coin Acquisition enabled the
Company to further expand its operations by providing coin-operated laundry
equipment services to multi-family housing properties in the states of Ohio,
Indiana, Kentucky, Michigan, West Virginia, Pennsylvania, Georgia, Tennessee,
Illinois and Florida, as well as by distributing exclusive lines of commercial
coin and non-coin laundry machines and parts, and by selling service contracts.
Subsequent to the National Coin Acquisition, NCLH, NLEC and NCL were merged with
and into Coinmach.

     The Kwik Wash Acquisition, the Reliable Acquisition and the National Coin
Acquisition have been accounted for as purchases.  The Company has made
preliminary allocations to fair value of the assets and liabilities assumed in
such transactions as of their respective acquisition dates.

7.  SUBSEQUENT EVENTS

     On October 8, 1997, Coinmach consummated the Bond Offering.  The issue
price was 109.875%, representing a 9.94% yield to maturity.  The gross proceeds
from the Bond Offering were $109.875 million, of which $100.0 million
represented the payment of principal and $9.875 million represented the payment
of a premium for the Series C Notes. Coinmach used approximately $105.4 million
of the net proceeds from the Bond Offering to repay indebtedness outstanding
under the Credit Facility.  After giving effect to such repayment of
indebtedness, the aggregate outstanding indebtedness under the Credit Facility
is $97.9 million as of November 10, 1997.

     On October 14, 1997, Coinmach Laundry filed a registration statement with
the Securities and Exchange Commission relating to a proposed offering of
4,312,500 shares of Common Stock. Of the total number of shares of Common Stock
that are contemplated to be registered for sale, 2,500,000 shares are
contemplated to be offered by Coinmach Laundry, 1,250,000 shares are
contemplated to be offered by certain selling stockholders and 562,500 shares
represent shares subject to an over-allotment option to be granted to the
underwriters by the selling stockholders, which include certain members of
management. There can be no assurance that Coinmach Laundry will consummate the
offering of such shares of Common Stock.

                                      -10-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

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

     Except for the historical information contained herein, certain matters
discussed in this document are forward-looking statements that involve certain
risks and uncertainties, including the risks and uncertainties discussed below,
as well as other risks set forth in the Company's Annual Report on Form 10-K for
the year ended March 28, 1997.

GENERAL

     The Company is principally engaged in the business of supplying out-sourced
coin-operated laundry equipment services to multi-family housing properties.  On
September 26, 1997, the Company owned and operated approximately 417,000 coin-
operated washers and dryers in approximately 42,000 multi-family housing
properties on routes throughout the United States and 151 retail laundromats
located throughout Texas.  Coinmach Laundry, through Super Laundry Equipment
Corp. ("Super Laundry"), a wholly-owned subsidiary of Coinmach, is also a
construction and laundromat equipment distribution company.

     The Company provides out-sourced coin-operated laundry equipment services
to locations by leasing laundry rooms from building owners and property
management companies, typically on a long-term, renewable basis.  In return for
the exclusive right to provide these services, most of the Company's contracts
provide for commission payments to the location owners.  Commission expense
(also referred to as rent expense), the Company's single largest expense item,
is included in laundry operating expenses and represents payments to location
owners.  Commissions may be fixed amounts or percentages of revenues and are
generally paid monthly.  Also included in laundry operating expenses are the
cost of servicing and collecting in the route business, including, payroll,
parts, vehicles and other related items, the cost of sales associated with Super
Laundry and certain expenses related to the operation of retail laundromats.

     In addition to commission payments, many of the Company's leases require
the Company to make advance rental payments to the location owners.  These
advance payments are capitalized and amortized over the life of the applicable
lease.

     Other revenue sources for the Company include (i) leasing laundry equipment
and other household appliances and electronic items to corporate relocation
entities, individuals, property owners and managers of multi-family housing
properties; (ii) operating, maintaining and servicing retail laundromats; and
(iii) constructing complete turnkey retail laundromats, retrofitting existing
retail laundromats, distributing exclusive lines of commercial coin and non-coin
machines and parts, and selling service contracts.

RESULTS OF OPERATIONS

     The following discussion should be read in conjunction with the attached
unaudited condensed consolidated financial statements and notes thereto and with
the Company's audited consolidated financial statements and notes thereto
included in the Company's Annual Report on Form 10-K as of and for the year
ended March 28, 1997.

THREE AND SIX MONTH PERIODS ENDED SEPTEMBER 26, 1997 COMPARED TO THREE AND SIX
MONTH PERIODS ENDED SEPTEMBER 27, 1996

     Revenues increased by approximately 67% and 59% for the three and six month
periods ended September 26, 1997, respectively, as compared to the prior year's
corresponding periods.  The improvement in revenues for the three and six month
periods resulted primarily from the acquisition of the route and laundromat
business of Kwik Wash Laundries, L.P. in January 1997 (the "Kwik Wash
Acquisition"), the acquisition of the route business of Reliable Holding Corp.
in April 1997 (the "Reliable Acquisition"), the acquisition (the "National Coin
Acquisition")

                                      -11-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

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

RESULTS OF OPERATIONS (continued)

of the route business of National Coin Laundry Holding, Inc. ("NCLH"), National
Coin Laundry, Inc. ("NCL"), National Laundry Equipment Company, Inc. ("NLEC")
and Whitmer Vend-O-Mat Laundry Services, Inc. ("Whitmer"), and increased route
revenues resulting from internal expansion.  During such six-month period, the
Company's installed base increased by approximately 9,400 machines from internal
growth (excluding the machines added from the Reliable Acquisition and the
National Coin Acquisition) as compared to an increase of approximately 4,200
machines during the prior year's corresponding period.

     Laundry operating expenses increased by approximately 68% and 58% for the
three and six month periods ended September 26, 1997, respectively, as compared
to the prior year's corresponding periods.  The increase was due primarily to an
increase in laundry operating expenses related to the Kwik Wash Acquisition, the
Reliable Acquisition and the National Coin Acquisition.

     General and administrative expenses increased by approximately $0.3 million
and $0.8 million, for the three and six month periods ended September 26, 1997,
respectively, as compared to the prior year's corresponding periods.  The
increase for the periods was primarily due to various expenses associated with
(i) costs relating to the Company's acquisition strategy, including legal and
financial due diligence investigations of potential targets and related costs,
(ii) the development and implementation of procedures for the management of
investor relations, and (iii) systems development and refinement relating to the
integration of prior acquisitions.

     Depreciation and amortization increased by approximately 74% and 71% for
the three and six month periods ended September 26, 1997, respectively, as
compared to the prior year's corresponding periods, due primarily to the
contract rights and goodwill associated with the Kwik Wash Acquisition, the
Reliable Acquisition and the National Coin Acquisition, as well as an increase
in capital expenditures for the installed base of machines.  As a result of the
Company's acquisition activity since early 1995, the Company incurred
approximately $18.9 million in non-cash depreciation and amortization charges
for the six months ended September 26, 1997 as compared to $11.7 million for the
prior year's corresponding period.

     In July 1996, Coinmach Laundry issued in privately negotiated transactions,
79,029 shares of its Class B common stock to certain members of management.
Coinmach Laundry recorded a stock-based compensation charge of approximately
$887,000 attributable to the issuance of such stock.  In addition, in July 1996
approximately $103,000 of receivables relating to loans to management in
connection with prior purchases of Common Stock were forgiven and have been
recorded as a stock-based compensation charge.

     During July and September 1996, Coinmach Laundry granted nonqualified
options (the "Options") to purchase Common Stock, to certain members of
management and certain other individuals, which enable such persons to purchase
shares of Common Stock at a 15% discount to the initial offering price of Common
Stock.  With respect to the Options granted to its employees, the Company will
record such discount as a stock-based compensation charge over the applicable
four year vesting period.  The Company also granted options to two of its
disinterested directors (the "Independent Director Options"), which enable such
persons to purchase an aggregate of 120,000 shares of Common Stock at the
initial offering price of Common Stock.  The Company will record the difference
between the exercise price of the Independent Director Options and the fair
market value of the Common Stock on the date of grant as a stock-based
compensation charge over the applicable three year vesting period.

     In September 1997, Coinmach Laundry granted non-qualified options (the
"1997 Options") to purchase an aggregate of 200,000 shares of Common Stock to
certain members of management at an exercise price of $11.90

                                      -12-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

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

RESULTS OF OPERATIONS (continued)

per share of Common Stock.  The Company will record the difference between the
exercise price of the 1997 Options and the fair market value of the Common Stock
on the date of grant as a stock-based compensation charge over the applicable
four year vesting period.  For the six months ended September 26, 1997 and
September 27, 1996, the Company recorded a stock-based compensation charge of
approximately $545,000 and $470,000 respectively, relating to the Options, the
Independent Director Options and the 1997 Options.

     Operating income margins were approximately 7% and 8% for the three and six
month periods ended September 26, 1997, respectively, as compared to
approximately 6% and 7%, for the three and six month periods ended September 27,
1996, respectively.

     Interest expense, net increased by approximately 84% and 74%, for the three
and six month periods ended September 26, 1997, respectively, as compared to the
prior year's corresponding periods, due primarily to increased interest payable
under the Company's senior financing arrangement obtained in January 1997 (as
amended, the "Credit Facility") resulting from increased borrowings to fund
acquisitions.

     EBITDA (earnings before deductions for interest, income taxes, depreciation
and amortization), before deduction for stock-based compensation charges, was
approximately $46.6 million for the six months ended September 26, 1997, as
compared to approximately $28.7 million for the corresponding period in 1996,
representing an improvement of approximately 62%.  EBITDA margins improved to
approximately 31.1% for the six months ended September 26, 1997, compared to
approximately 30.4% for the prior year's corresponding period.  EBITDA is used
by management and certain investors as an indicator of a company's historical
ability to service debt.  Management believes that an increase in EBITDA is an
indicator of the Company's improved ability to service existing debt, to sustain
potential future increases in debt and to satisfy capital requirements.
However, EBITDA is not intended to represent cash flows for the period, nor has
it been presented as an alternative to either (i) operating income (as
determined by generally accepted accounting principles ("GAAP")) as an indicator
of operating performance or (ii) cash flows from operating, investing and
financing activities (as determined by GAAP) as a measure of liquidity.  Given
that EBITDA is not a measurement determined in accordance with GAAP and is thus
susceptible to varying calculations, EBITDA as presented may not be comparable
to other similarly titled measures of other companies.

     The Company's effective income tax rate differs from the amount computed by
applying the U.S. federal statutory rate to loss before income taxes as a result
of state taxes and permanent book/tax differences (largely goodwill and contract
rights amortization).

                                      -13-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

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

LIQUIDITY AND CAPITAL RESOURCES

     The Company continues to have substantial indebtedness and debt service
requirements.  On September 26, 1997, the Company had outstanding long-term debt
of approximately $402.5 million and stockholders' equity of approximately $16.1
million.  On September 26, 1997, $16.0 million of revolving debt was outstanding
under the Credit Facility.

     The Company's level of indebtedness will have several important effects on
its future operations, including, but not limited to, the following: (a) a
significant portion of the Company's cash flows from operations will be required
to pay interest on its indebtedness and will not be available for other
purposes; (b) the financial covenants contained in certain of the agreements
governing the Company's indebtedness will require the Company to meet certain
financial tests and will limit its ability to borrow additional funds or to
dispose of assets; (c) the Company's ability to obtain additional financing in
the future for working capital, capital expenditures, acquisitions or general
corporate purposes may be impaired; and (d) the Company's ability to adapt to
changes in the coin-operated laundry equipment services industry and to economic
conditions in general will be limited.

     The Company anticipates that it will continue to utilize cash flows from
operations to finance its capital expenditures and working capital needs,
including interest payments on its outstanding indebtedness.  Capital
expenditures for the six months ended September 26, 1997 were approximately
$91.9 million.  Of such amount, the Company spent approximately $66.3 million in
acquisition and related transaction costs, including the Reliable Acquisition
and the National Coin Acquisition, and approximately $8.0 million related to the
net increase in the installed base of machines.  The balance was used to
maintain the existing machine base and for general corporate purposes.  The full
impact on revenues and EBITDA generated from capital expended on acquisitions
and the net increase in the installed base are not expected to be reflected in
the Company's financial results until subsequent reporting periods, depending on
the timing of the capital expended.

     The Company's working capital requirements are, and are expected to
continue to be, minimal since a significant portion of the Company's operating
expenses are not paid until after cash is collected from the installed machines.
In connection with certain of the financing agreements governing the Company's
indebtedness, Coinmach is required to make monthly cash interest payments under
the Credit Facility and semi-annual cash interest payments on the Senior Notes.

     The Company's depreciation and amortization expenses (aggregating
approximately $34.6 million for the six months ended September 26, 1997) have
the effect of reducing net income but not operating cash flow.  In accordance
with GAAP, a significant portion of the purchase prices of businesses acquired
by the Company is allocated to "contract rights", which costs are amortized over
periods of up to 15 years.  Although such accounting treatment can have a
favorable effect on operating cash flow by reducing taxes, such treatment also
reduces net income.

     Effective June 2, 1997, Coinmach entered into an amendment to the Credit
Facility with Bankers Trust Company, First Union National Bank of North
Carolina, Lehman Commercial Paper, Inc. and certain other lending institutions
named therein, to increase the principal amount of the Tranche B term loan by
$60 million.  The Credit Facility, as amended and prior to giving effect to
payment of principal installments, consists of a $70 million revolving credit
facility and a $190 million term loan facility, which is comprised of a Tranche
A term loan in the amount of $30 million and Tranche B term loan in the amount
of $160 million.  The Credit Facility also provides for up to $10 million of
letter of credit financing and short term borrowings under a swing line facility
of up to $5 million.

                                      -14-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

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

LIQUIDITY AND CAPITAL RESOURCES (continued)

     In connection with Coinmach's January 1997 acquisition of KWL, Inc. ("KWL")
and Kwik-Wash Laundries, Inc. ("Kwik Wash"), the sole partners of Kwik Wash
Laundries, L.P., Coinmach Laundry issued a $15 million promissory note (the
"Kwik Wash Note") in partial payment of the purchase price for the outstanding
voting securities of KWL and Kwik Wash.

     On July 17, 1997, Coinmach consummated the National Coin Acquisition,
pursuant to which it acquired 100% of the outstanding voting securities of NCLH
and NLEC and substantially all of the assets of Whitmer for an aggregate
purchase price of approximately $19.0 million in cash.  NCLH is the parent of
NCL.  The National Coin Acquisition enabled the Company to further expand its
operations by providing coin-operated laundry equipment services to multi-family
housing properties in the states of Ohio, Indiana, Kentucky, Michigan, West
Virginia, Pennsylvania, Georgia, Tennessee, Illinois and Florida, as well as by
distributing exclusive lines of commercial coin and non-coin laundry machines
and parts, and by selling service contracts.  Subsequent to the National Coin
Acquisition, NCLH, NLEC and NCL were merged with and into Coinmach.  The Credit
Facility was used to finance the National Coin Acquisition.

     On October 8, 1997, Coinmach completed the private placement (the "Bond
Offering") of $100 million aggregate principal amount of its 11 3\4% Series
C Notes due 2005 ("Series C Notes"), on substantially identical terms as its
outstanding Senior Notes.  The issue price was 109.875%, representing a 9.94%
yield to maturity.  The gross proceeds from the Bond offering were $109.875
million of which $100.0 million represented the payment of principal and $9.875
million represented the payment of a premium for the Series C Notes.  Coinmach
used approximately $105.4 million of the net proceeds from the Bond Offering to
repay indebtedness outstanding under the Credit Facility.  After giving effect
to such repayment of indebtedness, the aggregate outstanding indebtedness under
the Credit Facility is $97.9 million as of November 10, 1997.

     Management believes that the Company's future operating activities will
generate sufficient cash flow to repay borrowings under the Senior Notes, the
Series C Notes, the Credit Facility and the Kwik Wash Note or to permit any
necessary refinancings thereof.  An inability of the Company, however, to comply
with covenants or other conditions contained in the indentures governing the
Senior Notes or the Series C Notes, respectively, or in the credit agreement
evidencing the Credit Facility (as amended, the "Credit Agreement") could result
in an acceleration of all amounts due under such indentures, the Credit
Agreement and the Kwik Wash Note.  If the Company is unable to meet its debt
service obligations, it could be required to take certain actions such as
reducing or delaying capital expenditures, selling assets, refinancing or
restructuring its indebtedness, selling additional equity capital or other
actions.  There is no assurance that any of such actions could be effected on
commercially reasonable terms, if at all, or on terms permitted under the Credit
Agreement, or the indentures governing the Senior Notes or the Series C Notes,
respectively.

INFLATION AND SEASONALITY

     In general, the Company's laundry operating expenses and general and
administrative expenses are affected by inflation, and the effects of inflation
may be experienced by the Company in future periods.  Management believes that
such effects have not been nor will be material to the Company.  The Company's
business generally is not seasonal.

                                      -15-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------

PART II.  OTHER INFORMATION
          -----------------

ITEM 1.  LEGAL PROCEEDINGS

  From time to time, the Company has been, and expects to continue to be,
subject to legal proceedings and claims in the ordinary course of its business.
Although the amount of any liability that could arise with respect to these
actions can not be accurately predicted, management believes that any such
liability, individually or in the aggregate, will not have a material adverse
effect on the financial condition and results of operations of the Company.

ITEM 2.  CHANGES IN SECURITIES

     None

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     Not applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None

ITEM 5.  OTHER INFORMATION

     None

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

  (a)  Exhibits
       --------

       10.74  Stock Purchase Agreement dated, July 17, 1997, by and among
              "Sellers" as set forth on Exhibit A attached thereto, National
              Coin Laundry Holding, Inc., National Coin Laundry, Inc., National
              Laundry Equipment Company and Coinmach Corporation.

       10.75  Asset Purchase Agreement, dated July 17, 1997, by and among
              Whitmer Vend-O-Mat Laundry Services, Inc., Stephen P. Close,
              Kimberly A. Close, Ruth D. Close, Kimberly A. Close, Ruth D. Close
              and Stephen P. Close as trustees of the Alvin D. Close Trust, SPC
              Management, Inc. and Coinmach Corporation.

       27.1 Financial Data Schedule

  (b)  Reports on Form 8-K
       -------------------

     None

                                      -16-
<PAGE>
 
                 COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES
                 ---------------------------------------------


                                   SIGNATURES

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


            COINMACH LAUNDRY CORPORATION

Date: November 10, 1997      /s/ ROBERT M. DOYLE
                             -------------------------------
                               Robert M. Doyle
                               Senior Vice President and Chief Financial Officer
                               (On behalf of registrant and as Principal 
                                Financial Officer)

                                      -17-