SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

{ X }    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES AND EXCHANGE ACT OF 1934

For the period ended December 31, 1999

                                       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 February 11, 2000,  Coinmach Laundry  Corporation
had outstanding  12,939,391  shares of Class A common stock,  par value $.01 per
share (the "Common  Stock"),  and 240,324  shares of  non-voting  Class B Common
Stock, par value $.01 per share (the "Non-Voting Common Stock").


                                       -1-


<PAGE>


                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES

                                      INDEX

PART I.

Financial Information                                                   Page No.
---------------------                                                   --------

Item 1. Financial Statements

         Condensed Consolidated Balance Sheets-
         December 31, 1999 (Unaudited) and March 31, 1999                      3

         Condensed Consolidated Statements of Operations (Unaudited) -
         Three and Nine Months Ended December 31, 1999 and 1998                4

         Condensed Consolidated Statements of Cash Flows (Unaudited) -
         Nine Months Ended December 31, 1999 and 1998                          5

         Notes to Condensed Consolidated Financial Statements (Unaudited)    6-7


Item 2. Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                          8-13


Item 3. Quantitative and Qualitative Disclosure About Market Risk             14



PART II.

Other Information
------------------

Item 1. Legal Proceedings                                                     15

Item 2. Changes in Securities                                                 15

Item 3. Defaults Upon Senior Securities                                       15

Item 4. Submission of Matters to a Vote of Security Holders                   15

Item 5. Other Information                                                     16

Item 6. Exhibits and Reports on Form 8-K                                      17


Signature Page                                                                18
--------------


                                       -2-



<PAGE>


                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES


PART I.  FINANCIAL INFORMATION

ITEM 1.  Financial Statements


                      CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands of dollars)
<TABLE>
<CAPTION>

                                                                            December 31, 1999             March 31, 1999(1)
                                                                            -----------------             --------------
                                                                               (Unaudited)
<S>                                                                          <C>                          <C>

ASSETS:
Cash and cash equivalents                                                        $ 28,022                    $  26,515
Receivables, net                                                                   10,072                        8,107
Inventories                                                                        19,563                       16,328
Prepaid expenses                                                                    7,763                        6,552
Advance location payments                                                          78,577                       79,705
Land, property and equipment, net of accumulated
  depreciation of $165,303 and $123,337                                           233,091                      223,610
Contract rights, net of accumulated amortization of
  $94,511 and $70,602                                                             392,971                      413,014
Goodwill, net of accumulated amortization of $26,268
  and $20,318                                                                     103,323                      109,025
Other assets                                                                       16,706                       18,440
                                                                                  -------                   ----------
Total assets                                                                     $890,088                     $901,296
                                                                                 ========                     ========

LIABILITIES AND STOCKHOLDERS' EQUITY:

Accounts payable                                                                 $ 23,979                     $ 20,478
Accrued rental payments                                                            29,026                       26,888
Accrued interest                                                                    8,120                       15,516
Other accrued expenses                                                             14,626                       13,366
Deferred income taxes                                                              75,656                       81,494
11 3/4% Senior Notes                                                              296,655                      296,655
Premium on 11 3/4% Senior Notes, net                                                7,098                        8,023
Credit facility indebtedness                                                      392,135                      384,003
Other long-term debt                                                                6,351                        6,833

Stockholders' equity:
  Common stock and capital in excess of par value                                 104,936                      104,363
  Receivables from management                                                        (163)                        (219)
  Accumulated deficit                                                             (68,331)                     (56,104)
                                                                                 --------                      -------
Total stockholders' equity                                                         36,442                       48,040
                                                                                 --------                     --------
Total liabilities and stockholders' equity                                       $890,088                     $901,296
                                                                                 ========                     ========


See accompanying notes.
------
1. The  March  31,  1999  balance  sheet  has  been  derived  from  the  audited
consolidated financial statements as of that date.
</TABLE>



                                       -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                        Nine Months Ended
                                                            ------------------                        -----------------
                                                 December 31,            December 31,           December 31,           December 31,
                                                     1999                    1998                   1999                   1998
                                             ------------------     --------------------     -----------------     ----------------
<S>                                          <C>                    <C>                      <C>                   <C>

REVENUES                                            $130,713                 $130,736              $394,311                373,645
COSTS AND EXPENSES:

         Laundry operating expenses                   87,597                   85,738               261,090                245,461
         General and administrative
           expenses                                    2,089                    2,006                 6,235                  5,987
         Depreciation and amortization                30,730                   28,847                91,296                 83,940
         Stock-based compensation
           charge                                        186                      369                   532                    987
                                                     -------                 --------              --------               --------
                                                     120,602                  116,960               359,153                336,375
                                                     -------                  -------               -------                -------

OPERATING INCOME                                      10,111                   13,776                35,158                 37,270

INTEREST EXPENSE, NET                                 17,045                   16,902                50,634                 49,336
                                                      ------                  -------                ------                -------
LOSS BEFORE INCOME TAXES                              (6,934)                  (3,126)              (15,476)               (12,066)
                                                      -------                 -------               --------              --------
PROVISION (BENEFIT) FOR
INCOME TAXES:

         Currently payable                               733                      400                 2,744                    647
         Deferred                                     (2,707)                    (828)               (5,993)                (3,306)
                                                      -------                 -------                -------               -------
                                                      (1,974)                    (428)               (3,249)                (2,659)
                                                      -------                 -------                -------               -------

NET LOSS                                            $ (4,960)                $ (2,698)             $(12,227)              $ (9,407)
                                                      -------                 --------              --------               --------
BASIC AND DILUTED LOSS                              $   (.38)                $   (.20)             $   (.93)              $   (.71)
                                                     ========                 ========             ========               ========
PER SHARE
WEIGHTED AVERAGE SHARES
OUTSTANDING:
         Common Shares                            13,172,274               13,167,783            13,169,302             13,167,783


See accompanying notes.

</TABLE>



                                       -4-



<PAGE>


                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES

                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
                                  -----------
                           (In thousands of dollars)

<TABLE>
<CAPTION>

                                                                                              Nine Months Ended
                                                                                      ----------------------------------
                                                                                      December 31 ,        December 31,
                                                                                          1999                  1998
                                                                                         ------                 -----
<S>                                                                                    <C>                  <C>

OPERATING ACTIVITIES:
         Net loss                                                                      $ (12,227)           $   (9,407)
         Adjustments to reconcile net loss to net
cash
               provided by operating activities:
             Depreciation                                                                 42,006                38,580
             Amortization of advance location
payments                                                                                  18,102                15,035
             Amortization of intangibles                                                  31,188                30,325
             Deferred income taxes                                                        (5,993)               (3,306)
             Amortization of premium on 11 3/4%
         Senior Notes                                                                       (925)                 (926)
             Amortization of debt discount and
         deferred issue costs                                                              1,315                 1,316
             Stock-based compensation                                                        532                   987

         Change in operating assets and liabilities, net of businesses acquired:
             Other assets                                                                   (786)               (1,499)
             Receivables, net                                                             (1,965)                 (131)
             Inventories and prepaid expenses                                             (4,167)               (1,201)
             Accounts payable                                                              3,502                 1,278
             Accrued interest, net                                                        (7,396)               (8,572)
             Other accrued expenses, net                                                    (755)                2,284
                                                                                            -----              -------
         Net cash provided by operating activities                                        62,431                64,763
                                                                                          ------                ------

INVESTING ACTIVITIES:
         Additions to property and equipment                                             (51,852)              (45,718)
         Advance location payments to location
owners                                                                                   (14,880)              (16,230)
         Additions to net assets related to
acquisitions of businesses                                                                -                    (89,584)
                                                                                       ---------               --------
         Net cash used in investing activities                                           (66,732)             (151,532)
                                                                                         --------             ---------

FINANCING ACTIVITIES:
         Net proceeds of credit facility borrowings                                        8,132                92,222
         Net repayments of bank and other borrowings                                        (260)               (1,507)
         Principal payments on capitalized lease
obligations                                                                               (2,160)               (2,026)
         Deferred debt issue costs                                                    -                           (381)
         Proceeds from issuance of stock for
         employee stock option
           plan                                                                               96                 -
                                                                                         -------             -----
             Net cash provided by financing
activities                                                                                 5,808                88,308
                                                                                           -----                ------
             Net increase in cash and cash
equivalents                                                                                1,507                 1,539

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                            26,515                22,456
                                                                                          ------                ------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                                 $28,022               $23,995
                                                                                         =======               =======

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
         Interest paid                                                                  $ 57,665              $ 57,863
                                                                                         =======               =======
         Income taxes paid                                                              $  2,366              $    432
                                                                                        ========              =========

NON-CASH FINANCING ACTIVITIES:
         Acquisition of fixed assets through capital leases                             $  2,313              $   1,372
                                                                                        ========               ========
</TABLE>


                                      -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"), including Coinmach Corporation ("Coinmach"), is the leading supplier
of outsourced laundry services for multi-family housing properties in the United
States. The Company's core business involves leasing laundry rooms from building
owners and property  management  companies,  installing  and  servicing  laundry
equipment and collecting  revenues generated from laundry machines.  The Company
owns and operates approximately 786,000 washers and dryers (hereinafter referred
to as "laundry  machines"  or  "machines")  in over 75,000  locations  on routes
located  throughout  the United  States and in 181  retail  laundromats  located
throughout Texas and Arizona. The Company also leases laundry machines and other
household appliances to corporate relocation entities, property owners, managers
of multi- family housing  properties and  individuals.  Super Laundry  Equipment
Corp. ("Super Laundry"), a wholly-owned  subsidiary of Coinmach, is a laundromat
equipment distribution company.


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 in the  financial  statements.  Actual  results  could differ 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 its fiscal year ended March
31, 1999.


3.  Loss per Share

         Basic and  diluted  loss per share for each of the three and nine month
periods ended December 31, 1999 were calculated  based upon the weighted average
number of common shares outstanding of 13,172,274 and 13,169,302,  respectively.
Basic and  diluted  loss per share for each of the three and nine month  periods
ended December 31, 1998 were calculated  based upon the weighted  average number
of common shares  outstanding  of  13,167,783.  Conversion of common  equivalent
shares  (stock  options)  was not  assumed  since the  results  would  have been
antidilutive.



                                      -6-

<PAGE>



                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                                  (continued)


4.  Debt

         At December 31, 1999, the Company had  outstanding  debt  consisting of
(a)  approximately  $296.7  million of  Coinmach's 11 3/4% Senior Notes due 2005
(the "Senior Notes"),  (b)  approximately  $269.5 million of term loans, and (c)
approximately  $122.6  million  under a  revolving  line of  credit.  The  above
mentioned  term  loans  and  revolving  line of  credit  represent  indebtedness
pursuant to the Company's existing credit facility (as amended and restated, the
"Senior  Credit  Facility"),  which is secured by all of the Company's  real and
personal property.  Under the Senior Credit Facility, the Company has 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   representations,
warranties  and  agreements,   the  Senior  Credit  Facility   contains  certain
restrictive 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,  transactions  with  affiliates  and the Company's
ability to pay  dividends.  Also,  the  indenture  governing  the  Senior  Notes
contains restrictive covenants that similarly limit Coinmach's ability to, among
other  things,  incur debt,  pay  dividends  or make other  distributions,  make
investments,  create liens,  enter into transactions  with affiliates,  and sell
assets.


5.  Employee Stock Purchase Plan

         On August 2, 1999,  the Company  commenced  the first  offering  period
under its Employee  Stock  Purchase Plan (the "Plan").  Subject to the terms and
conditions of the Plan,  all eligible  employees who elect to participate in the
Plan are entitled to purchase shares of Common Stock. Each share of Common Stock
purchased by eligible  employees  under the Plan shall be purchased at a fifteen
percent (15%)  discount to the fair market value of one share of Common Stock as
determined pursuant to the Plan through  consecutive  offering periods until May
3, 2008 or such earlier date that the Plan is terminated. A maximum of 1,000,000
shares of Common  Stock shall be  available  for  purchase  under the Plan.  The
shares of Common Stock sold to participants under the Plan may be authorized and
unissued  Common Stock or previously  issued shares  acquired by the Company and
held in its treasury.  Proceeds are withheld from employees'  payroll deductions
and shares are sold on the last day of each  quarter.  The Plan is  intended  to
qualify as an "employee  stock  purchase plan" under Section 423 of the Internal
Revenue Code.



                                      -7-
<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 based on the beliefs
of the  Company's  management  as of the date of this  report and are subject to
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 31,  1999.  Should  these  risks or  uncertainties
materialize,  or should underlying  assumptions  prove incorrect,  the Company's
future  performance and actual results of operations may differ  materially from
those expected or intended.

General
-------

         The  Company  is  principally  engaged  in the  business  of  supplying
outsourced laundry services for multi-family housing properties. At December 31,
1999, the Company owned and operated approximately 786,000 washers and dryers in
over 75,000  locations on routes  throughout the United States and in 181 retail
laundromats  located  throughout Texas and Arizona.  The Company,  through Super
Laundry,   its  wholly-owned   subsidiary,   is  also  a  laundromat   equipment
distribution  company.  Additionally,  the Company leases  laundry  machines and
other household appliances to corporate  relocation  entities,  property owners,
managers of multi-family housing properties and individuals.

         The Company's primary financial  objective is to increase its cash flow
from  operations.  Cash  flow  from  operations  represents  a  source  of funds
available to service indebtedness and for investment in both internal growth and
growth through  acquisitions.  The Company has experienced net losses during the
past three fiscal years. Such net losses are attributable in part to significant
non-cash   charges   associated   with   the   Company's    execution   of   its
acquisition-related  growth  strategy,  namely,  high levels of  amortization of
contract  rights and goodwill  related to  acquisitions  accounted for under the
purchase method of accounting.

         The Company's most  significant  revenue source is its route  business,
accounting  for more than 85% of its revenue.  The Company  provides  outsourced
laundry  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
costs of machine  maintenance  and  revenue  collection  in the route  business,
including  payroll,  parts,  insurance and other related  expenses,  the cost of
sales associated with the equipment  distribution  business 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
location payments to the location owners. These advance payments are capitalized
and amortized over the life of the applicable lease.


                                      -8-
<PAGE>



                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES


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

General (continued)
-------

         Other  revenue  sources  for  the  Company  include:  (i)  constructing
complete   turnkey  retail   laundromats,   retrofitting   retail   laundromats,
distributing  exclusive lines of commercial coin and non-coin  operated machines
and parts, and selling service  contracts  (approximately  $33.7 million for the
nine months ended  December 31, 1999 and $28.5 million for the nine months ended
December 31, 1998); (ii) operating, maintaining and servicing retail laundromats
(approximately  $15.2  million for the nine months  ended  December 31, 1999 and
$14.9 million for the nine months ended  December 31,  1998);  and (iii) leasing
laundry  equipment  and  other  household  appliances  and  electronic  items to
corporate  relocation  entities,  property  owners,  managers  of multi-  family
housing  properties and  individuals  (approximately  $10.2 million for the nine
months  ended  December  31, 1999 and $8.1  million  for the nine  months  ended
December 31, 1998).

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 for its fiscal year
ended March 31, 1999.

Comparison of the three and nine month periods ended December 31, 1999
and December 31, 1998

          Revenues  increased by approximately  $20.7 million or 6% for the nine
month  period  ended  December  31,  1999,  as  compared  to  the  prior  year's
corresponding  period.  The improvement in revenues for the nine month period is
attributable  primarily to (i) increased route revenues  resulting from internal
expansion in an  approximate  amount of $13.1 million  despite an estimated $1.5
million  reduction  in revenue  in the south  central  region  due to  increased
vandalism;  (ii) increased revenues generated from the distribution  business in
an approximate  amount of $5.2 million;  and (iii) increased  revenues generated
from the rental  business in an  approximate  amount of $2.1  million.  Revenues
remained  unchanged  for the three month  period ended  December  31,  1999,  as
compared  to  the  prior  year's  corresponding  period,  due  primarily  to  an
improvement  in route  revenues  which was offset by increased  vandalism in the
south central region, a decrease in distribution  revenues of approximately $1.1
million  and a decrease in retail  laundromat  revenues  of  approximately  $0.5
million.

         Laundry operating expenses increased by approximately 2% and 6% for the
three and nine month periods ended December 31, 1999, respectively,  as compared
to the prior year's  corresponding  periods.  This increase was due primarily to
(i) an increase in commission expense and operating


                                      -9-
<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)
---------------------

expenses  related  to the  improvements  in route  revenues;  (ii) cost of sales
related to increased volume in the distribution  business; and (iii) an increase
in  expenses  related  to growth in the  rental  business.  As a  percentage  of
revenues,  laundry  operating  expenses  have  remained  relatively  constant at
approximately  66% for each of the three and nine month periods  ended  December
31, 1999 and December 31, 1998.

         General and administrative  expenses increased  nominally for the three
and nine month periods ended  December 31, 1999, as compared to the prior year's
corresponding  periods.  However,  as a  percentage  of  revenues,  general  and
administrative  expenses remained constant at approximately 1.6% for each of the
three and nine month periods ended December 31, 1999 and December 31, 1998.

         Depreciation and amortization expense increased by approximately 7% and
9% for the three and nine month periods ended  December 31, 1999,  respectively,
as compared to the prior  year's  corresponding  periods,  due to an increase in
capital  expenditures with respect to the Company's  installed base of machines.
The  increase  for the  nine  month  period  ended  December  31,  1999 was also
attributable to contract rights and goodwill associated with the above-mentioned
acquisitions.

         Operating income margins were approximately 7.7% and 8.9% for the three
and nine month periods  ended  December 31, 1999,  respectively,  as compared to
approximately  10.5%  and  10.0% for the  three  and nine  month  periods  ended
December 31, 1998.  This change was primarily  due to increases in  depreciation
and amortization expense as noted above.

         Interest  expense,  net, for the three month period ended  December 31,
1999 remained relatively unchanged as compared to the prior year's corresponding
period.  Interest expense, net, increased by approximately 3% for the nine month
period ended  December 31, 1999,  as compared to the prior year's  corresponding
period,  due  primarily to increased  borrowing  levels under the Senior  Credit
Facility in connection with certain acquisitions mentioned above.

         The effective tax benefit rate for the nine month period ended December
31,  1999  remained  relatively  constant  with the prior  year's  corresponding
period.

         EBITDA  (earnings  before   deductions  for  interest,   income  taxes,
depreciation and  amortization)  before  deduction for stock-based  compensation
charges was approximately  $127.0 million for the nine months ended December 31,
1999, as compared to approximately  $122.2 million for the corresponding  period
in 1998,  representing  an  improvement of  approximately  4%. This increase was
primarily the result of increased  revenues,  as discussed above. EBITDA margins
remained  constant at  approximately  32% for the nine months ended December 31,
1999.  EBITDA  is used by  certain  investors  as an  indicator  of a  company's
historical  ability to service  debt.  Management  believes  that an increase in
EBITDA is an indication of the Company's  improved  ability to service  existing
debt,  to sustain  potential  future  increases  in debt and to satisfy  capital
expenditure  requirements.   However, EBITDA  is not intended  to represent cash
flows for the period, nor has it


                                      -10-
<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)
---------------------

been presented as an  alternative to either (a) operating  income (as determined
by GAAP) as an  indicator  of  operating  performance  or (b)  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.

Liquidity and Capital Resources
-------------------------------

         The Company continues to have substantial indebtedness and debt service
requirements.  At December 31, 1999, the Company had outstanding  long-term debt
(excluding  the  unamortized  premium  on  the  Senior  Notes  in an  amount  of
approximately  $7.1 million) of approximately  $695.1 million and  stockholders'
equity of approximately $36.4 million.

         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 flow from operations will be required
to pay interest on its indebtedness;  (b) the restrictive covenants contained in
certain of the agreements governing the Company's  indebtedness will require the
Company  to meet  certain  financial  tests and may 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  outsourced  laundry  services
industry and to economic conditions in general will be limited.

         As the Company has focused on increasing  its cash flow from  operating
activities, it has made significant capital investments, primarily consisting of
capital  expenditures  related to acquisitions,  renewal and growth. 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 nine
months ended December 31, 1999 were approximately $66.7 million. Of such amount,
the Company spent approximately $19.6 million related to the net increase in the
installed  base of machines of  approximately  21,000  machines.  The balance of
approximately  $47.1 million (which  consists of machine  expenditures,  advance
location  payments  and laundry  room  improvements)  was used to  maintain  the
existing machine base in current locations,  to replace  discontinued  locations
and for general  corporate  purposes.  The full impact on revenues and cash flow
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 certain  factors,
including the timing of the capital  expended.  While the Company estimates that
it will generate  sufficient cash flows from  operations to finance  anticipated
capital expenditures, there can be no assurances that it will be able to do so.

         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

                                      -11-
<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)
-------------------------------

governing the Company's indebtedness,  Coinmach is required to make monthly cash
interest payments as required by the Senior Credit Facility and semi-annual cash
interest payments on the Senior Notes.

         Management believes that the Company's future operating activities will
generate sufficient cash flow to repay indebtedness outstanding under the Senior
Notes and borrowings under the Senior Credit Facility or to permit any necessary
refinancings  thereof.  An  inability of the  Company,  however,  to comply with
covenants  or other  conditions  under the Senior  Credit  Facility or under the
indenture  governing  the  Senior  Notes,  in  either  case  could  result in an
acceleration of all amounts due thereunder. 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 or on terms  permitted  under the Senior  Credit
Facility or the indenture governing the Senior Notes.

         The  Company's  depreciation  and  amortization  expenses  (aggregating
approximately  $91.3  million for the nine months ended  December 31, 1999) have
the effect of reducing net income but not  operating  cash flow.  In  accordance
with GAAP, a significant amount of the purchase price of businesses  acquired by
the Company is allocated to "contract  rights," which costs are amortized over a
period of 15 years.

         As part of its business strategy, the Company will continue to evaluate
opportunities to acquire local,  regional and  multi-regional  route businesses.
There can be no  assurance  that the Company  will find  attractive  acquisition
candidates or effectively manage the integration of acquired businesses into its
existing business. Additionally, the Company expects to utilize excess cash flow
from operations primarily to reduce debt.


                                      -12-
<PAGE>



                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES


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


Year 2000 Compliance
--------------------

         The "year 2000" or "Y2K"  problem  was the result of computer  programs
being written using two digits rather than four to define the  applicable  year.
As a  consequence,  computer  programs  that had time-  sensitive  software  may
recognize a date using "00" as the year 1900 rather than the year 2000.

         The Company's  comprehensive year 2000 initiative was managed by a team
of internal staff and outside  consultants.  The team's activities were designed
to ensure  that  there was no  adverse  effect on the  Company's  core  business
operations  and  that  transactions  with  customers,  suppliers  and  financial
institutions  were  fully  supported.   The  Company  has  not  experienced  any
significant  disruptions in any of its systems on January 1, 2000 or at any time
through the date of this report.  The cost of the year 2000  initiative  has not
been material to the Company's  results of  operations,  financial  condition or
cash flows and is not expected to be material in the foreseeable future.

         During  the 1999  Fiscal  Year,  the  Company  assessed  the year  2000
readiness of its information  technology ("IT") and non-IT systems.  The Company
determined  that it needed to modify  significant  portions of its IT systems so
that such systems would function properly with respect to dates in the year 2000
and beyond. The Company completed its IT systems transformation and believes its
IT and non-IT systems to be compliant.

         In addition, as part of its year 2000 initiative, the Company contacted
its significant  suppliers,  customers and financial institutions to ensure that
those parties had  appropriate  plans to remediate  year 2000 issues where their
systems interface with the Company's systems or otherwise impact its operations.
The Company  assessed the extent to which its operations were vulnerable  should
those  organizations  fail to properly address their year 2000 readiness.  As of
the date of this report, the computer systems of those operations have not had a
material adverse effect on the Company's  operations.  The Company will continue
to contact its significant  suppliers,  customers and financial  institutions to
monitor and confirm  that those  parties  are not  anticipating  any further Y2K
contingencies during the remainder of the year.

         While the  Company  believes  its  planning  efforts  were  adequate to
address the year 2000 issue, there can be no guarantee that its computer systems
or the computer  systems of other  companies on which the Company's  systems and
operations  rely were  converted  on a timely basis and will not have a material
adverse effect on the operations of the Company.

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  will not be  material  to the  Company.  The  Company's  business
generally is not seasonal.


                                      -13-
<PAGE>



                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

         The Company's  principal  exposure to market risk relates to changes in
interest rates on its  borrowings.  The Company has not experienced any material
changes in reported market risks related to its borrowings since March 31, 1999,
the end of its most recent fiscal year.




                                      -14-
<PAGE>



                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES


PART II.    OTHER INFORMATION

ITEM 1.  Legal Proceedings

         On April 8,  1999,  Sand v.  Coinmach  Laundry  Corporation,  et. al, a
purported  class  action  securities  fraud  lawsuit,  was filed in the  Federal
District  Court for the Eastern  District of New York (the  "Federal  Securities
Action") naming the Company and certain of its executive officers as defendants.
The  Federal  Securities  Action  was  purportedly  brought  on  behalf  of  all
shareholders  of the Company who  purchased or otherwise  acquired the Company's
Common  Stock  during the  period  August 6, 1997 to  September  29,  1998.  The
complaint in the Federal Securities Action alleges violations of various federal
securities laws, including  misrepresentations  of certain information about the
Company.  An amended complaint was filed on December 10, 1999 seeking damages in
unspecified  amounts.   Although  the  outcome  of  this  proceeding  cannot  be
predicted,  based on the allegations contained in the complaint and consultation
with the  Company's  insurance  carrier,  management  believes  that the Federal
Securities  Action  will not have a  material  adverse  effect on the  financial
condition, results of operations or cash flows of the Company.

          On November 18, 1999, K. Reed Hinrichs v. Stephen R. Kerrigan, et al.,
a purported class action  lawsuit,  was filed in the Delaware Court of Chancery,
Newcastle  County  naming the Company and certain of its  executive  officers as
defendants.  Plaintiffs allege that the defendants are breaching their fiduciary
duty to the Company's public  shareholders by selling the Company for inadequate
compensation.  The  matter  has been  stayed by  agreement  of the  parties.  On
February 3, 2000, GRKC Holding Company,  LLC, whose acquisition proposal was the
subject of the lawsuit,  withdrew its proposal to acquire the  Company's  common
stock. Based on the allegations contained in the complaint and the withdrawal of
the acquisition  proposal,  management believes that this action will not have a
material  adverse  effect on the financial  condition,  results of operations or
cash flows of the Company.

         The Company is also party to various legal  proceedings  arising in the
ordinary  course  of  business.   Although  the  ultimate  disposition  of  such
proceedings  is not  presently  determinable,  management  does not believe that
adverse  determinations  in any or all such  proceedings  would  have a material
adverse effect upon the financial condition, results of operations or cash flows
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

                                      -15-

<PAGE>


                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES


ITEM 5.  Other Information

         On February 3, 2000, GRKC Holding Company, LLC announced the withdrawal
of its  proposal to acquire the  Company's  common stock for $13.00 per share in
cash due to an inability to reach an agreement with an independent  committee of
the Company's board of directors.  The proposal was originally  presented to the
board of directors of the Company in October 1999.



                                      -16-
<PAGE>



                  COINMACH LAUNDRY CORPORATION AND SUBSIDIARIES


ITEM 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits

               3.1      Fourth  Amended and Restated  Certificate of
                        Incorporation of Coinmach Laundry (incorporated
                        by reference from Exhibit 3.5 to Coinmach Laundry's
                        Form 10-Q for the quarterly period ended
                        September 30, 1998, file number 1-11907)

               3.2      Third Amended and Restated Bylaws of Coinmach Laundry
                        (incorporated by reference from Exhibit 3.1 to
                        Coinmach Laundry's Form 10-Q for the quarterly period
                        ended September 27, 1996, file number 1-11907)

               3.3      Certificate of Powers, Designations, Preferences
                        and Relative Participating, Optional and other
                        Special Rights of Series A Preferred Stock and
                        Qualifications, Limitations and Restrictions
                        thereof (incorporated by reference from exhibit
                        3.2 to Coinmach Laundry's Form 10-Q for the
                        quarterly period ended June 28, 1996, file number
                        1-11907)

               27.1     Financial Data Schedule

           (b) Reports on Form 8-K

               None


                                      -17-
<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: February 11, 2000                /s/ Robert M. Doyle
                                           -----------------------

                                       Robert M. Doyle
                                       Senior Vice President and
                                          Chief Financial
Officer
                                       (On behalf of registrant and
                                          as Principal Financial Officer)



                                      -18-