UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

                     OF THE SECURITIES EXCHANGE ACT OF 1934





For Quarter Ended July 3, 1999                        Commission File No. 0-6882


                              URT INDUSTRIES, INC.
             (Exact Name of Registrant as Specified in Its Charter)


                   Florida                                   59-1167907
(State or Other Jurisdiction of Incorporation or      (I.R.S. Employer I.D. No.)
 Organization)


1180 E. Hallandale Beach Blvd., Hallandale, FL                 33009
  (Address of Principal Executive Offices)                  (Zip Code)


Registrant's telephone number, including area code:       (954) 454-5554

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  registrants  were
required  to file  such  reports),  and  (2)  has  been  subject  to the  filing
requirements for at least the past 90 days.


                                  YES [X]  NO [_]


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock as of the latest practicable date.

At September 22, 1999, there were outstanding:

10,857,068 shares of Class A common stock
1,301,141 shares of Class B common stock


<PAGE>


                      URT INDUSTRIES, INC. AND SUBSIDIARIES

                                      Index
<TABLE>
<CAPTION>

PART I. FINANCIAL INFORMATION

<S>                                                                                                  <C>
Item 1. Financial Statements

        Condensed  Consolidated  Balance Sheets -July 3, 1999 (Unaudited),  April 3, 1999 and
          June 27, 1998 (unaudited)                                                                   3

        Condensed Consolidated Statements of Operations and Retained
          Deficit - Three Months Ended July 3, 1999 and June 27, 1998 (Unaudited)                     4

        Condensed  Consolidated  Statements  of Cash Flows - Three  Months Ended July 3, 1999
          and June 27, 1998 (Unaudited)                                                               5

        Notes to Condensed Consolidated Financial Statements                                          6

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

PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K 10

SIGNATURES                                                                                           11
</TABLE>


<PAGE>


                         PART I - FINANCIAL INFORMATION
                          Item 1. Financial Statements

                     URT INDUSTRIES, INC. AND SUBSIDIARIES

                     Condensed Consolidated Balance Sheets

                 July 3, 1999, April 3, 1999 and June 27, 1998


<TABLE>
<CAPTION>

                                     Assets                                         July 3,            April 3,           June 27,
                                                                                     1999               1999                1998
                                                                                  -----------        -----------        ------------
                                                                                  (unaudited)                            (unaudited)
<S>                                                                               <C>                 <C>                <C>
Current assets:
    Cash and cash equivalents                                                     $ 1,063,495            927,982            696,494
    Marketable investment securities                                                       --            439,640          1,048,035
    Inventories                                                                     2,216,269          2,309,600          2,535,148
    Current portion due from officers/shareholders                                     33,269             42,769             45,302
    Prepaid expenses and other current assets                                         182,991            291,809            261,462
                                                                                  -----------        -----------        -----------

           Total current assets                                                     3,496,024          4,011,800          4,586,441

Property and equipment, net                                                         1,262,436          1,249,289          1,445,938
Due from officers/shareholders                                                          2,227              3,385             28,036
Other assets                                                                          218,739            195,560            206,758
                                                                                  -----------        -----------        -----------

                                                                                  $ 4,979,426          5,460,034          6,267,173
                                                                                  ===========        ===========        ===========

                      Liabilities and Shareholders' Equity

Current liabilities:
    Current portion of long-term obligations                                      $    91,872            108,280            652,665
    Accounts payable                                                                2,067,581          2,240,109          2,058,160
    Accrued liabilities                                                               674,350            706,407            813,606
                                                                                  -----------        -----------        -----------

           Total current liabilities                                                2,833,803          3,054,796          3,524,431

Long-term obligations                                                                 456,496            469,759            548,457
Deferred rent                                                                          79,044             63,030             63,988
Minority interest in a subsidiary                                                      30,061             49,121             12,859
                                                                                  -----------        -----------        -----------

           Total liabilities                                                        3,399,404          3,636,706          4,149,735

Shareholders' equity:
    Common stock $.01 par value; 30,000,000 shares authorized;
      15,317,454 shares issued                                                        153,175            153,175            153,175
    Additional paid-in capital                                                      5,542,152          5,542,152          5,542,152
    Retained deficit                                                               (3,096,970)        (2,856,923)        (2,559,554)
    Accumulated other comprehensive income - net unrealized
      appreciation on investment securities                                                --              3,259                 --
    Treasury stock, 3,159,245 common shares, at cost                               (1,018,335)        (1,018,335)        (1,018,335)
                                                                                  -----------        -----------        -----------

           Total shareholders' equity                                               1,580,022          1,823,328          2,117,438
                                                                                  -----------        -----------        -----------

Commitments and contingencies
                                                                                  $ 4,979,426          5,460,034          6,267,173
                                                                                  ===========        ===========        ===========
</TABLE>


See accompanying notes to condensed consolidated financial statements.


                                       3
<PAGE>


                      URT INDUSTRIES, INC. AND SUBSIDIARIES

      Condensed Consolidated Statements of Operations and Retained Deficit

                Three months ended July 3, 1999 and June 27, 1998
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                July 3,                 June 27,
                                                                 1999                     1998
                                                              -----------              -----------

<S>                                                           <C>                       <C>
Net sales                                                     $ 3,658,139                3,869,760
                                                              -----------              -----------

Costs and expenses:
    Cost of sales                                               2,176,328                2,318,804
    Selling, general and administrative expenses                1,688,322                1,841,710
    Depreciation and amortization                                  47,781                   58,546
                                                              -----------              -----------

                                                                3,912,431                4,219,060

          Loss from operations                                   (254,292)                (349,300)
                                                              -----------              -----------

Other (expense) income:
    Interest expense                                              (14,507)                 (29,816)
    Interest income                                                 9,692                   15,364
                                                              -----------              -----------

                                                                   (4,815)                 (14,452)

          Loss before income taxes and minority interest         (259,107)                (363,752)

Minority interest in net loss of consolidated subsidiary          (19,060)                 (14,437)
                                                              -----------              -----------

          Net loss                                               (240,047)                (349,315)

Retained deficit, beginning of period                          (2,856,923)              (2,210,239)
                                                              -----------              -----------

Retained deficit, end of period                                (3,096,970)              (2,559,554)
                                                              ===========              ===========

Basic and diluted loss per common share                       $     (0.02)                   (0.03)
                                                              ===========              ===========


See accompanying notes to condensed consolidated financial statements.
</TABLE>


                                       4
<PAGE>


                      URT INDUSTRIES, INC. AND SUBSIDIARIES

                       Condensed Statements of Cash Flows

                Three months ended July 3, 1999 and June 27, 1998
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                              July 3,           June 27,
                                                                                               1999               1998
                                                                                            -----------        ----------
<S>                                                                                         <C>                  <C>
Cash flows from operating activities:
    Net loss                                                                                $  (240,047)          (349,315)
                                                                                            -----------        -----------
    Adjustments to reconcile net loss to net cash used in operating activities:
          Depreciation and amortization                                                          47,781             58,546
          Deferred rent                                                                          16,014              1,154
          Minority interest in net loss of consolidated subsidiary                              (19,060)           (14,437)
          Change in assets and liabilities affecting cash flows from operating
            activities:
               (Increase) decrease in:
                   Inventories                                                                   93,331           (101,715)
                   Prepaid expenses and other current assets                                    108,818            125,586
                   Other assets                                                                 (23,179)            (5,106)
               Increase (decrease) in:
                   Accounts payable                                                            (172,527)            43,486
                   Accrued liabilities                                                          (32,057)           (87,719)
                                                                                            -----------        -----------

                     Net cash used in operating activities                                     (220,926)          (329,520)
                                                                                            -----------        -----------

Cash flows from investing activities:
    Purchase of marketable investment securities                                                     --            (15,295)
    Sale of marketable equity securities                                                        436,381
    Purchases of property and equipment                                                         (60,929)          (140,151)
    Due from officers/shareholders                                                               10,658              9,686
                                                                                            -----------        -----------

                     Net cash provided by (used in) investing
                         activities                                                             386,110           (145,760)
                                                                                            -----------        -----------

Cash flows from financing activities:
    Repayment of long-term obligations                                                          (29,671)          (109,324)
                                                                                            -----------        -----------

                     Net cash used in financing activities                                      (29,671)          (109,324)
                                                                                            -----------        -----------

                     Net increase (decrease) in cash and cash
                         equivalents                                                            135,513           (584,604)

Cash and cash equivalents, beginning of year                                                    927,982          1,281,098
                                                                                            -----------        -----------

Cash and cash equivalents, end of period                                                    $ 1,063,495            696,494
                                                                                            ===========        ===========

Supplemental disclosures of cash flow information:
    Cash paid during the period for interest                                                $    14,507             10,218
                                                                                            ===========        ===========
</TABLE>


See accompanying notes to condensed consolidated financial statements.


                                       5
<PAGE>


                      URT INDUSTRIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements

                         July 3, 1999 and June 27, 1998
                                   (Unaudited)


(1)  Basis of Financial Statement Presentation

     The accompanying unaudited condensed consolidated financial statements have
     been  prepared  in  accordance  with the  instructions  to Form  10-Q  and,
     therefore,  do not include all  footnotes and  information  necessary for a
     fair  presentation  of financial  position,  results of operations and cash
     flows in conformity with generally accepted accounting principles. However,
     in the opinion of management,  all adjustments  (consisting  only of normal
     recurring accruals) necessary for a fair presentation have been made.

     The  consolidated   financial   statements  include  the  accounts  of  URT
     Industries,   Inc.  (the  "Parent")  and  its  wholly  owned   nonoperating
     subsidiary,   and  its   majority-owned   operating   subsidiary,   Peaches
     Entertainment  Corporation  (87.5 percent of the outstanding stock of which
     was owned by the Parent, as of July 3, 1999). All significant  intercompany
     accounts have been eliminated.  Reference to the Company encompasses all or
     any of the aforementioned entities.

     It is suggested  that the  accompanying  unaudited  condensed  consolidated
     financial  statements be read in conjunction with the financial  statements
     and notes included in the Company's annual report on Form 10-K for the year
     ended April 3, 1999.

     The results of operations  for the three months ended July 3, 1999, are not
     necessarily indicative of the operating results to be expected for the year
     ending April 1, 2000.  The Company's  business is seasonal in nature,  with
     the highest sales and earnings historically  occurring in the third quarter
     of the fiscal year, which includes the holiday selling season.

     Inventories,  which consist of compact discs,  tapes and  accessories,  are
     stated at the lower of cost (principally average) or market.

     Certain  reclassifications  have been made to the (unaudited) June 27, 1998
     quarterly financial  information to conform to the presentation used in the
     (unaudited) July 3, 1999 financial information.

(2)  Earnings Per Share

     In December  1997,  the Company  adopted the  provisions  of  Statement  of
     Financial  Accounting  Standards No. 128,  "Earnings Per Share" ("Statement
     128"),  which  establishes  new  standards  for  computing  and  presenting
     earnings per share  ("EPS").  Earnings per share for all prior periods have
     been restated to reflect the provisions of this Statement.

     Basic and diluted  earnings (loss) per share have been computed by dividing
     net earnings (loss),  by the weighted average number of shares  outstanding
     during the period.


                                        6                            (Continued)
<PAGE>


                      URT INDUSTRIES, INC. AND SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements

                         July 3, 1999 and June 27, 1998
                                   (Unaudited)



Basic and diluted loss per share were calculated as follows:


                                             Three months ended    Three months
                                                   Ended              Ended
                                             ------------------    -------------
                                                   July 3,             June 27,
                                                    1999                1998

       Basic and diluted:
            Net loss                           $     (240,047)        (349,315)
                                               ==============      ===========

            Weighted average shares                12,158,209       12,158,209
                                               ==============      ===========

       Basic and diluted loss per share                 (0.02)           (0.03)
                                               ==============      ===========

(3)  Marketable Securities

     The  Company's  marketable  securities  consist  of equity  securities  and
     Treasury   bills,   and  are  considered   available  for  sale  with  cost
     approximating    fair    market    value.    Securities    classified    as
     available-for-sale  are reported at fair market value with unrealized gains
     and losses included in stockholders' equity.  Realized gains and losses are
     included in interest and other income.

(4)  Income Taxes

     The Company follows Statement of Financial Accounting Standard ("SFAS") No.
     109,  Accounting  for Income Taxes.  The Company files a  consolidated  tax
     return  with its  subsidiaries.  Any  applicable  tax charge or credits are
     allocated on a separate return basis. For the three month period ended July
     3, 1999,  there was no (benefit)  provision for income taxes as the Company
     has  excess  net  operating  loss  carryforwards  for  federal  income  tax
     purposes.


                                        7                            (Continued)


<PAGE>


                              URT INDUSTRIES, INC.


Item 2.   Management's  Discussions  and  Analysis of  Financial  Condition  and
          Results  of  Operations  for the  Three  Months  Ended  July 3,  1999,
          Compared to the Three Months ended June 27, 1998.

From  time to  time,  the  Company  may make  certain  statements  that  contain
"forward-looking"  information (as defined in the Private Securities  Litigation
Reform  Act  of  1995).  Words  such  as  "believe,"  "anticipate,"  "estimate,"
"project" and similar expressions are intended to identify such  forward-looking
statements.  Forward-looking  statements may be made by management  orally or in
writing,  including,  but not  limited  to, in press  releases,  as part of this
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  and as a part of  other  sections  of this  Annual  Report  or other
filings.   Readers  are  cautioned   not  to  place  undue   reliance  on  these
forward-looking  statements,  which speak only as of their respective dates, and
are subject to certain risks, uncertainties and assumptions.  Should one or more
of these risks or  uncertainties  materialize,  or should any of the  underlying
assumptions prove incorrect, actual results of current and future operations may
vary materially from those anticipated, estimated or projected.

                              RESULTS OF OPERATIONS

Sales.  Net  sales  from the  three  months  ended  July 3,  1999  decreased  by
approximately 5.5 percent compared to the three months ended June 27, 1998. Such
decrease is primarily attributable to a 4.7 percent decrease in comparable store
sales.


Cost of Sales.  The cost of sales for the first  quarter of 2000 fiscal year was
lower than that of the first  quarter of 1999 fiscal year due  principally  to a
decrease in net sales.  Cost of sales as a percentage of net sales has decreased
from 59.9  percent in the first  quarter of 1999 fiscal year to 59.5  percent in
the first  quarter in 2000 fiscal year  primarily  due to an increase in certain
retail selling prices and increases in purchase discounts.

Selling, General and Administrative.  Selling, general and administrative (SG&A)
expenses,  including  depreciation,  in the first  quarter of 2000  fiscal  year
decreased by 8.6 percent compared to the first quarter of 1999 fiscal year. Such
decrease is  primarily  attributable  to the fact that the Company  operated one
less store in the first quarter of fiscal 2000. SG&A expenses as a percentage of
net sales  decreased  from 49.1  percent in the first  quarter of fiscal 1999 to
47.5 percent in the first quarter of fiscal 2000.

Net Loss. The Company incurred a net loss of approximately $240,000 in the first
quarter of 2000 fiscal year versus a net loss of  approximately  $349,000 in the
first  quarter  of 1999  fiscal  year.  The  decrease  in net loss is  primarily
attributable  to the fact that the quarter  ended June 27, 1998  included  costs
associated  with the  opening  of one new store,  an  increase  in gross  profit
percentage,  a decrease in interest  expense  offset by a decrease in comparable
store sales.


                                        8                            (Continued)
<PAGE>


                         LIQUIDITY AND CAPITAL RESOURCES


LIQUIDITY AND CAPITAL RESOURCES

Liquidity  and  Capital  Resources.  Cash  generated  from  operations  and cash
equivalents   are  the  Company's   primary  source  of  liquidity.   Management
anticipates  that the cash generated from  operations,  cash equivalents on hand
and financing will provide  sufficient  liquidity to maintain  adequate  working
capital for operations. Management anticipates that it would use funds generated
from  operations  as well as  possible  financing,  for the  opening  of any new
stores,  which  it may  plan to open  this  fiscal  year.  For a  discussion  of
uncertainties affecting the Company's liquidity and capital resources,  see note
3 to the financial statements on form 10-K for the year ended April 3, 1999.

Long-Term Obligations. At July 3, 1999, the Company had long-term obligations of
$456,496.  Management  anticipates  that  its  ability  to repay  its  long-term
obligations  will be  satisfied  primarily  through  funds  generated  from  its
operations.

                                  OTHER MATTERS

Impact of  Inflation.  Although  the Company  cannot  accurately  determine  the
precise  effect of  inflation  on its  operations,  management  does not believe
inflation  has had a material  effect on the results of  operations  in the last
three  fiscal  years.  When the cost of  merchandise  items has  increased,  the
Company has been able to pass the increase on to its customers.

Seasonality.  The  Company's  business is  seasonal in nature,  with the highest
sales and earnings  historically  occurring in the third fiscal  quarter,  which
includes the Christmas selling season.

Year 2000  Compliance.  The Year 2000 Issue is the result of  computer  programs
being written using two digits rather than four to define the  applicable  year.
Any of the Company's  computer  programs that have  data-sensitive  software may
recognize a date using "00" as year 1900  rather than the year 2000.  This could
result in a system failure or miscalculations causing disruptions of operations.
The Company has assessed that it is required to upgrade portions of its software
which was  originally  purchased  from  outside  vendors,  so that its  computer
systems will properly  utilize dates beyond  December 31, 1999.  The Company has
purchased its upgraded software and expects that testing and implementation will
be completed by October,  1999. The total anticipated cost of the upgrade of the
Company's software is approximately  $20,000.  However, there can be no absolute
assurance that the Company can successfully  implement the necessary upgrades to
its  computer  systems.  Additionally,  the Company is dependent on basic public
infrastructure,  such as telecommunications and utilities,  in order to function
normally.  Significant long-term interruptions of this infrastructure could have
an adverse  effect on the operations of the Company.  Additionally,  the Company
must rely on  assurances  from  suppliers  and  vendors  that their  information
systems and key services will be Year 2000 compliant,  and the Company currently
has no practical  alternatives  if these major  suppliers  experience  problems.
Therefore, even if the Company, in a timely manner,  successfully implements the
necessary changes to its computer  systems,  some problems may not be identified
or  corrected  in time to prevent  material  adverse  consequences  or  business
interruptions to the Company,  and there can be no absolute assurance that there
will not be a material adverse effect on the Company's operations,  liquidity or
financial condition as a result of the Year 2000 issue.


                                        9                            (Continued)
<PAGE>


                              URT INDUSTRIES, INC.


                                OTHER INFORMATION


PART II

Item 6. Exhibits and Reports on Form 8-K

     (a)  Exhibits

               27.0 Financial Data Schedule

     (b)  Reports on Form 8-K

               A Form  8-K  dated  September  10,  1999  was  filed  on or about
          September  13, 1999 for the purpose of reporting on the status of this
          10-Q filing.


                                       10                            (Continued)
<PAGE>


                              URT INDUSTRIES, INC.


                                   SIGNATURES


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


                                  URT INDUSTRIES, INC.
                                  Registrant


Date:  10/14/99                    /s/ Allan Wolk
                                   ---------------------------------------------
                                   Allan Wolk, Chairman of the Board, President
                                   (Principal Executive Officer)




Date:  10/14/99                    /s/ Jason Wolk
                                   ---------------------------------------------
                                   Jason Wolk, Executive Vice President,
                                   Chief Financial Officer
                                   (Principal Financial and Accounting Officer)


                                       11