<PAGE>   1



                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


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

                                   FORM 10-QSB

Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934 for the Quarterly Period Ended October 31, 1998.


Commission file number 0-6649


                             Jilco Industries, Inc.
------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


         California                                           95-2075885
------------------------------------------------------------------------------
         (State or other jurisdiction of                   (I.R.S. Employer
         incorporation or organization)                   Identification No.)


P. O. Box 10539, Beverly Hills, California                       90213
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(Address of principal executive offices)                       (Zip Code)


                                 (310) 274-1986
                         ------------------------------
                           (Issuer's telephone number)


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


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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   .
                                                               ---    ---

449,991 shares of the issuer's common stock, no par value, are outstanding as of
October 31, 1998.


Transitional Small Business Disclosure Format:

         Yes               No  X  .
            ---               ---



<PAGE>   2



                         PART I . FINANCIAL INFORMATION
                             JILCO INDUSTRIES, INC.
               BALANCE SHEETS - OCTOBER 31, 1998 AND JULY 31, 1998
                                   (UNAUDITED)



                                     ASSETS

<TABLE>
<CAPTION>
                                                                    October 31,           July 31,
                                                                       1998                1998
                                                                   ------------          ---------   
<S>                                                                <C>                   <C>    
CURRENT ASSETS
     Cash                                                          $      1,810          $   2,049
                                                                   ------------          ---------

                  TOTAL CURRENT ASSETS                             $      1,810          $   2,049
                                                                   ============          =========


                      LIABILITIES AND SHAREHOLDERS' DEFICIT

CURRENT LIABILITIES
     Notes payable to shareholder                                  $     53,250          $  53,250
     Note payable                                                        50,000             48,000
     Accrued interest                                                    60,454             58,222
     Other accrued expenses                                               1,600                800
                                                                   ------------          ---------

         Total current liabilities                                      165,304            160,272
                                                                   ------------          ---------

SHAREHOLDERS' DEFICIT
     Common stock, no par value
         1,500,000 shares authorized
         449,991 shares issued and outstanding                          749,950            749,950
     Accumulated deficit                                               (913,444)          (908,173)
                                                                   ------------          ---------

              Total shareholders' deficit                              (163,494)          (158,223)
                                                                   ------------          ---------

                  TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT      $      1,810          $   2,049
                                                                   ============          =========
</TABLE>


                       See Notes to Financial Statements.



                                        1

<PAGE>   3



                             JILCO INDUSTRIES, INC.
                         STATEMENTS OF LOSS AND DEFICIT
                  THREE MONTHS ENDED OCTOBER 31, 1998 AND 1997
                                   (UNAUDITED)


<TABLE>
<CAPTION>

                                                           1998               1997
                                                     ---------------    ----------------
<S>                                                  <C>                <C>   
EXPENSES
     Professional fees                               $         2,212    $          6,356
     Interest expense                                          2,232               1,422
     Sundry                                                       27                  18
                                                     ---------------    ----------------

         Total expenses                                        4,471               7,796
                                                     ---------------    ----------------

LOSS BEFORE PROVISION FOR INCOME TAXES                        (4,471)             (7,796)

PROVISION FOR INCOME TAXES                                       800                 800
                                                     ---------------    ----------------

NET LOSS                                                      (5,271)             (8,596)

ACCUMULATED DEFICIT, BEGINNING OF YEAR                      (908,173)           (858,368)
                                                     ---------------    ----------------

ACCUMULATED DEFICIT, END OF YEAR                     $      (913,444)   $       (866,964)
                                                     ===============    ================ 

BASIC LOSS PER SHARE                                 $         (0.01)    $         (0.02)
                                                     ===============     =============== 

DILUTED LOSS PER SHARE                               $        (0.01)   $           (0.02)
                                                     ===============    ================ 

WEIGHTED-AVERAGE SHARES OUTSTANDING                          449,991             449,991
                                                     ===============    ================
</TABLE>


                       See Notes to Financial Statements.



                                        2


<PAGE>   4



                             JILCO INDUSTRIES, INC.
                            STATEMENTS OF CASH FLOWS
                  THREE MONTHS ENDED OCTOBER 31, 1998 AND 1997
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                 1998             1997
                                                           ---------------    ------------
<S>                                                        <C>                <C>

CASH FLOWS FROM OPERATING ACTIVITIES
     Net loss                                              $        (5,271)   $     (8,596)
     Increase in accrued interest                                    2,232           1,422
     Increase in other accrued expenses                                800             800
                                                           ---------------    ------------

         Net cash used in operating activities                      (2,239)         (6,374)
                                                           ---------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES
     Proceeds from notes payable                                     2,000           7,000
                                                           ---------------    ------------

         Net cash provided by financing activities                   2,000           7,000
                                                           ---------------    ------------

              Net increase (decrease) in cash                         (239)            626

CASH, BEGINNING OF YEAR                                              2,049             976
                                                           ---------------    ------------

CASH, END OF YEAR                                          $         1,810    $      1,602
                                                           ===============    ============


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

     INTEREST PAID                                         $             -    $          -
                                                           ===============    ============

     INCOME TAXES PAID                                     $             -    $          -
                                                           ===============    ============
</TABLE>



                       See Notes to Financial Statements.


                                        3


<PAGE>   5

                             JILCO INDUSTRIES, INC.
                          NOTES TO FINANCIAL STATEMENTS
                  THREE MONTHS ENDED OCTOBER 31, 1998 AND 1997
                                   (UNAUDITED)

NOTE 1 - THE COMPANY

         Jilco Industries, Inc. (the "Company") has been inactive since April 2,
         1968 when it was discharged from bankruptcy under its previous name of
         Sportways, Inc. The expenses the Company has incurred represent those
         necessary to keep the Company in good standing in its state of
         residence.

         FAIR VALUE OF FINANCIAL INSTRUMENTS
         For certain of the Company's financial instruments including cash and
         accrued expenses, the carrying amounts approximate fair value due to
         their short maturities. The amounts shown as notes payable also
         approximate fair value because current interest rates and terms offered
         to the Company for notes payable of similar maturities are
         substantially the same.

         CASH AND CASH EQUIVALENTS
         For purpose of reporting cash flows, the Company includes cash on
         deposit, cash on hand, and financial instruments purchased with an
         original maturity of three months or less to be cash equivalents.

         INTERIM FINANCIAL INFORMATION
         The interim financial statements reflect all adjustments (which include
         only the normal recurring adjustments) necessary for a fair
         presentation of financial position, results of operations and cash
         flows for such periods. The results of operations for the three months
         ended October 31, 1998 and 1997 are not necessarily indicative of the
         results that may be expected for the entire year ending July 31, 1999,
         or any other future periods.  

         ESTIMATES
         The preparation of financial statements in conformity with generally
         accepted accounting principles requires management to make estimates
         and assumptions that affect the reported amounts of assets and
         liabilities at the date of the financial statements, as well as the
         reported amounts of expenses during the reporting period. Accordingly,
         actual results could differ from those estimates.

         INCOME TAXES
         The Company utilizes SFAS No. 109, "Accounting for Income Taxes," which
         requires the recognition of deferred tax assets and liabilities for the
         expected future tax consequences of events that have been included in
         the financial statements or tax returns. Under this method, deferred
         income taxes are recognized for the tax consequences in future years of
         differences between the tax bases of assets and liabilities and their
         financial reporting amounts at each period end based on enacted tax
         laws and statutory tax rates applicable to the periods in which the
         differences are expected to affect taxable income. Valuation allowances
         are established, when necessary, to reduce deferred tax assets to the
         amount expected to be realized. The provision for income taxes
         represents the tax payable for the period and the change during the
         period in deferred tax assets and liabilities.




                                        4
<PAGE>   6


                             JILCO INDUSTRIES, INC.
                          NOTES TO FINANCIAL STATEMENTS
                  THREE MONTHS ENDED OCTOBER 31, 1998 AND 1997
                                   (UNAUDITED)


NOTE 2 - LOSS PER SHARE

         The Company calculates basic loss per share using the weighted-average
         number of shares outstanding for the period. Diluted loss per share
         includes both the weighted-average number of shares and any common
         share equivalents such as options or warrants in the calculation. As
         the Company had no common share equivalents outstanding during any
         periods presented, basic and diluted loss per share are the same.


NOTE 3 - NOTES PAYABLE TO SHAREHOLDER

         Notes payable to shareholder at October 31 consisted of the following:

<TABLE>
<CAPTION>

                                                                               1998               1997
                                                                         ---------------    ---------------

<S>                                                                      <C>                <C> 
           Revolving note payable, interest accrues at 9%
               per annum.  Principal and accrued interest
               are due on demand.                                        $        40,000    $        40,000
           Revolving note payable, interest accrues at 11%
               per annum.  Principal and accrued interest
               are due on demand.                                                  8,250              8,250
           Revolving note payable, interest accrues at 10%
               per annum.  Principal and accrued interest
               are due on demand.                                                  5,000              5,000
                                                                         ---------------    ---------------

                    TOTAL                                                $        53,250    $        53,250
                                                                         ===============    ===============
</TABLE>


NOTE 4 - NOTE PAYABLE

         The note payable is due on demand. Interest accrues at 8% per annum
         and is payable on December 31 of each year.





                                        5


<PAGE>   7



                             JILCO INDUSTRIES, INC.


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

       Registrant has not conducted any business operations during the last five
(5) fiscal years, except that during the above fiscal years it has incurred
expenses necessary to keep its good standing in its state of residence and to
comply with the periodic reporting requirements of the Exchange Act.


                           PART II. OTHER INFORMATION


       None of Items 1 through 5 of Part II are applicable.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K
     
          (a)  Exhibits
               
               Exhibit No.         Description
               -----------         -----------------------
                   27              Financial Data Schedule 

          (b)  No materially important events occurred during the last quarterly
               period that would require the filing of Form 8-K.

                                   SIGNATURES

       In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                                JILCO INDUSTRIES, INC.


Date:  December 10, 1998                        /S/ MARTHA J. KRETZMER
                                                -----------------------------
                                                    Martha J. Kretzmer,
                                                    President




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