<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                   Form 10-Q

                  QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                      For the Quarter Ended March 31, 1997
                      ------------------------------------

                         Commission File Number 1-12476
                         ------------------------------

                           SUN COAST INDUSTRIES, INC.
                           --------------------------
                           (Exact name of Registrant)

         Delaware                                        #59-1952968
------------------------                       ---------------------------------
(State of Incorporation)                       (IRS Employer Identification No.)


                 2700 South Westmoreland Ave., Dallas, TX 75233
                 ----------------------------------------------
                    (Address of principal executive offices)


                                 (214) 373-7864
                        -------------------------------
                        (Registrant's telephone number)

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
                                   ---     ---

Indicate the number of shares outstanding of each of the issuers' classes of 
common stock, as of November 6, 1996, the latest practicable date.

          Class                              Outstanding at April 9, 1997
          -----                              ----------------------------
Common stock $0.01 par value                             4,104,229


                                       1
<PAGE>   2
                           SUN COAST INDUSTRIES, INC.
                                     INDEX

<TABLE>
<S>                                                                <C>
Part I. Financial Information

Item I - Financial Statements

   Condensed Consolidated Balance Sheets -- March 31, 1997
   and June 30, 1996                                               3

   Condensed Consolidated Statements of Income -- Nine Months
   ended March 31, 1997 and 1996                                   5

   Condensed Consolidated Statements of Income -- Three Months
   Ended March 31, 1997 and 1996                                   6

   Condensed Consolidated Statements of Cash Flows -- Nine  
   Months ended March 31, 1997 and 1996                            7

   Notes to Condensed Consolidated Financial Statements            8

Item II - Management's Discussion and Analysis of Financial
   Condition and Results of Operations                            13

Part II. Other Information

Items 1 through 6                                                 16

</TABLE>


                                       2
<PAGE>   3
PART I. FINANCIAL INFORMATION

Item I. FINANCIAL STATEMENTS

                           SUN COAST INDUSTRIES, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                             (dollars in thousands)

<TABLE>
<CAPTION>
                                                   March 31, 
                                                     1997      June 30,
                                                  (unaudited)    1996
                                                  -----------  --------
<S>                                                 <C>        <C>
ASSETS

Current assets:
  Cash and cash equivalents                         $    874   $  1,947
  Accounts receivable, net of allowance for
     doubtful accounts of $135 and $77                 7,642      8,483
  Inventories                                          5,370      5,411
  Other current assets                                   306        408
  Deferred income taxes                                  430        205
  Net assets of discontinued                           
    operations                                         5,654     12,934
                                                    --------   --------

     Total current assets                             20,276     29,388

Property, plant and equipment, net of accumulated
  depreciation of $23,367 and $20,295                 22,498     23,113
Intangible assets                                        261        280
Other assets                                           2,292      1,352
                                                    --------   --------

     Total assets                                   $ 45,327   $ 54,133
                                                    ========   ========
</TABLE>

     See accompanying notes to condensed consolidated financial statements.


                                       3
<PAGE>   4
                           SUN COAST INDUSTRIES, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                    (dollars in thousands, except par value)

<TABLE>
<CAPTION>                                        
                                                    March 31,
                                                      1997      June 30,
LIABILITIES AND STOCKHOLDERS' EQUITY               (unaudited)   1996
                                                    ---------- --------
<S>                                                 <C>        <C>
Current liabilities:
  Accounts payable                                  $  7,645   $  5,275
  Accrued expenses                                     3,940      2,678
  Current portion
     of long-term debt                                 6,270     26,157
                                                    --------   --------

     Total current liabilities                        17,855     34,110

Long-term debt                                        15,192      3,124
Deferred income taxes                                  1,624      2,055
                                                    --------   --------

     Total liabilities                                34,671     39,289
                                                    --------   --------

Stockholders' equity:
  Common stock, $.01 par value; 40,000,000
     shares authorized; 4,117,629 and 4,017,629 
     respectively, issued and 4,104,229 and 
     4,004,229, respectively, outstanding                 40         40
  Additional paid-in capital                          11,655     11,339
  Treasury stock                                        (153)      (153)
  Retained earnings (deficit)                           (886)     3,618
                                                    --------   --------
     Total stockholders' equity                       10,656     14,844
                                                    --------   --------
     Total liabilities and stockholders' equity     $ 45,327   $ 54,133
                                                    ========   ========
</TABLE>

     See accompanying notes to condensed consolidated financial statements.





                                       4
<PAGE>   5
                           SUN COAST INDUSTRIES, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
                 (dollars in thousands, except per share data)

<TABLE>
<CAPTION>
                                               Nine Months Ended      
                                                   March 31, 
                                             ---------------------
                                              1997          1996    
                                             -------      --------
<S>                                          <C>          <C>         
Sales                                        $49,721      $ 43,538    
                                                                      
                                                                      
Costs and expenses:                                                   
  Cost of sales                               40,224        35,872    
  Selling, general and administrative          6,037         6,417    
  Interest, net                                1,476         1,128    
                                             -------      --------

                                              47,737        43,417    
                                             -------      --------
                                                                      
Income from continuing operations
  before provision for income taxes            1,984           121    
Provision for income taxes                      (643)         (138)    
                                             -------      --------
     Income (loss) from continuing 
       operations                            $ 1,341           (17)   

Discontinued operations (Note 2)
  Loss from discontinued
    operations, net of income
    taxes of $405 and $860,
    respectively                                (819)       (1,378)

  Loss on disposal of discontinued
    operations, net of income taxes
    of $2,817                                 (5,025)          --
                                             -------      --------
  Net loss                                   $(4,503)     $ (1,395)
                                             =======      ========
Net income (loss) per common share:
  Continuing operations                      $  0.33      $   0.00
  Discontinued operations                      (1.45)        (0.35)
                                             -------      --------
Net loss per common share                    $ (1.12)     $  (0.35)
                                             =======      ========
</TABLE>

     See accompanying notes to condensed consolidated financial statements.





                                       5
<PAGE>   6
                           SUN COAST INDUSTRIES, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
                 (dollars in thousands, except per share data)

<TABLE>
<CAPTION>
                                              Three Months Ended      
                                                   March 31, 
                                             ---------------------
                                              1997          1996    
                                             -------      --------
<S>                                          <C>          <C>         
Sales                                        $18,140      $ 16,018    
                                                                      
                                                                      
Costs and expenses:                                                   
  Cost of sales                               14,976        13,101    
  Selling, general and administrative          1,817         2,702    
  Interest, net                                  491           379    
                                             -------      --------

                                              17,284        16,182    
                                             -------      --------
                                                                      
Income from continuing operations
  before provision for income taxes              856          (164)    
Provision for income taxes                      (287)          (12)     
                                             -------      --------
     Income (loss) from continuing
       operations                                569          (176)     

Discontinued operations (Note 2)
  Loss from discontinued
    operations, net of income taxes
    of $0 and $579 respectively                   --          (968)
                                             -------       --------

  Net income (loss)                          $   569      $  (1,144)
                                             =======       ========

Net income (loss) per common share:
  Continuing operations                      $  0.14       $  (0.04)
  Discontinued operations                         --          (0.25)
                                             -------       --------
Net income (loss) per common share           $  0.14      $   (0.29)
                                             =======       ========
</TABLE>

     See accompanying notes to condensed consolidated financial statements.





                                       6
<PAGE>   7
                           SUN COAST INDUSTRIES, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
                             (dollars in thousands)

<TABLE>
<CAPTION>
                                                                    Nine Months Ended
                                                                        March 31,
                                                                   -------------------
                                                                    1997         1996
                                                                   ------       ------   
<S>                                                  <C>          <C>           <C>        
Cash flows from operating activities:                                                    
                                                                                         
  Net loss                                                        $(4,503)      $(1,395)
  Adjustments to reconcile net income to                                                   
     net cash provided by (used in) operations:                                             
     Depreciation and amortization                                  4,090         4,250      
     Gain on sale of assets                                           165            --  
     Deferred income taxes                                           (830)         (124)      
     Loss from discontinued operations                              4,458            --
                                                                                         
  Changes in assets and liabilities:                                                       
     Accounts receivable                                              
     Inventories                                                      (80)       (2,670)              
     Other current assets                                           2,167         2,036          
     Intangible and other assets                                      148          (150)    
     Accounts payable and accrued expenses                           (987)         (244)            
                                                                    3,927         2,223                                       
                                                                  -------       -------   
  Net cash provided by operations                                   8,555         3,926                
                                                                  -------       -------   
Cash flows from investing activities:                                                    
                                                                                         
  Capital expenditures                                             (3,916)       (3,467)        
  Dispositions                                                      1,801            --
                                                                  -------       -------   
Net cash used in investing activities                              (2,115)       (3,467)        
                                                                  -------       -------   
Cash flows from financing activities:                                                    

  Proceeds from long-term debt                                         --         2,958  

  Repayments of long-term debt                                     (7,506)       (3,925)
                                                                                         
  Issuance of Common Stock                                             --            72  
                                                                  -------       -------   
     Net cash used in provided by financing activities             (7,506)         (895)
                                                                  -------       -------
     Effect of exchange rate changes on cash                           (7)         (154)
                                                                  -------       ------- 
     Change in cash and cash equivalents                           (1,073)         (590)        
     Cash and cash equivalents at beginning of period               1,947         1,173              
                                                                  -------       -------   
     Cash and cash equivalents at end of period                   $   874       $   583  
                                                                  =======       =======   
</TABLE>

     See accompanying notes to condensed consolidated financial statements.


                                       7
<PAGE>   8
                           SUN COAST INDUSTRIES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1997

NOTE 1 - THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Basis of Presentation

     The Company's (defined below) interim financial statements are unaudited
     and should be read in conjunction with the consolidated financial
     statements and notes thereto in its Form 10-K and Annual Report to
     Stockholders for the year ended June 30, 1996.

     In the opinion of management, the accompanying consolidated financial
     statements contain all adjustments, consisting only of those of a normal
     recurring nature, necessary for a fair statement of the results of
     operations for the interim periods presented.

     Description of Business

     Sun Coast Industries, Inc. (the "Company") manufactures and sells melamine
     and urea resins and compounds and, from these and other materials, molds
     consumer products and commercial plastic products, including dinnerware,
     drinkware and closures. The Chemical Division manufactures melamine and
     urea resins and compounds, which it supplies to other manufacturers and
     uses in producing its own consumer products and foodservice products. The
     Closures Division manufactures linerless, foil or foam lined and
     tamper-evident plastic closures and lids. These closures are used in the
     U.S. for bottling and packaging of food, beverage, chemical and
     pharmaceutical products. The Consumer Products and Foodservice Divisions,
     which are being discontinued (see Note 2), manufacture compression molded
     melamine dinnerware and injection molded plastic drinkware and other
     houseware products, which the Company sells to American, Canadian and
     Mexican retail and commercial markets.



                                       8
<PAGE>   9
                           SUN COAST INDUSTRIES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1997

NOTE 1 - THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
         (Cont'd)

     Principles of Consolidation

     The consolidated financial statements include the accounts of the Company
     and its subsidiaries, all of which are wholly-owned. All significant
     intercompany balances and transactions have been eliminated in
     consolidation. The preparation of consolidated 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 and the reported amounts of revenues and expenses during the
     period.  Actual results could differ from the estimates. Certain amounts
     in previously issued financial statements have been reclassified to
     conform with the current year financial statement presentation.

     Inventories

     Inventories are valued at the lower of cost or market, with cost
     determined utilizing the first-in, first-out (FIFO) method.

     Property, Plant and Equipment

     Property, plant and equipment are carried at cost and depreciated using
     the straight-line method over the estimated useful lives of the related
     assets. Lives assigned to asset categories are 5 to 15 years for machinery
     and equipment, 30 to 35 years for buildings and 5 years for molds.
     Machinery and equipment under capital leases are stated at the present
     value of minimum lease payments and amortized over 1 to 3 years. Renewals
     and improvements that significantly add to the productive capacity or 
     extend the useful life of an asset are capitalized.  Repairs and 
     maintenance are charged to expense as incurred.


     Goodwill

     Goodwill, which represents the excess of purchase price over fair value of
     net assets acquired, is amortized on a straight-line basis over the
     expected periods to be benefited, ranging from 5 - 20 years. The Company
     assesses the recoverability of this intangible asset by determining
     whether the amortization of the goodwill balance over its remaining life
     can be recovered through undiscounted future operating cash flows of the
     acquired operation. The amount of goodwill impairment, if any, is measured
     based on projected discounted future operating cash flows using a discount
     rate reflecting the Company's average cost of funds. The assessment of the
     recoverability of goodwill will be impacted if estimated future operating
     cash flows are not achieved.

     Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of

     The Company adopted the provisions of SFAS No. 121, Accounting for the
     Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
     Of, on July 1, 1996. This Statement requires that long-lived assets and
     certain identifiable intangibles be reviewed for impairment whenever
     events or changes in circumstances indicate that the carrying amount of an
     asset may not be recoverable. Recoverability of assets to be held and used
     is measured by a comparison of the carrying amount of an asset to future
     net cash flows expected to be generated by the asset. If such assets are
     considered to be impaired, the impairment to be recognized is measured by
     the amount by which the carrying amount of the assets exceed the fair value
     of the assets. Assets to be disposed of are reported at the lower of the
     carrying amount or fair value less costs to sell. Adoption of the
     Statement did not have a material impact on the Company's financial
     position, results of operations, or liquidity.



                                       9
<PAGE>   10
                           SUN COAST INDUSTRIES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                MARCH 31, 1997

NOTE 1 - THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
         (Cont'd)

     Advertising Costs

     The Company expenses the costs of advertising as incurred, except for
     direct-response advertising and catalog costs which are capitalized and
     amortized over their expected periods of future benefit (generally six
     months). Direct response advertising and catalog costs consist primarily
     of printing and contract services for catalogs to market the Company's
     products.

     Income Taxes

     Deferred income taxes are provided for temporary differences between
     financial and tax reporting. Income taxes are provided for taxes currently
     payable based on taxable income.

     Environmental Costs

     A liability for environmental assessments and/or cleanup is accrued when
     it is probable a loss has been incurred and is estimable. No significant
     liabilities were in existence at March 31, 1997 and June 30, 1996.

     Net Income Per Common Share

     Net income per common share is computed by dividing net income by the
     weighted average number of common shares outstanding during each period
     after giving effect to stock options and warrants considered to be
     dilutive common stock equivalents.





                                      10
<PAGE>   11
                           SUN COAST INDUSTRIES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1997

NOTE 1 - THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
         (Cont'd)

     Revenue Recognition

     Sales are recognized when the product is shipped. Sales are shown net of
     returns and allowances.

     Research and Development

     Research and development costs associated with new product development,
     application and testing are expensed as incurred.

     Statement of Cash Flows

     For purposes of the statements of cash flows, the Company considers all
     highly liquid investments with original maturities of three months or less
     to be cash equivalents.

     Foreign Currency Translation and Transactions

     Gains or loses from foreign currency transactions are included in net
     income. There were no material gains or losses from foreign currency
     transactions for the nine months ended March 31, 1997 and for fiscal 1996.

     Included in discontinued operations is the Company's foreign subsidiary.
     Effective January 1, 1997, the Mexican economy has been deemed highly
     inflationary. Thus, the Company switched the functional currency for its
     Mexican subsidiary from the peso to the U.S. dollar. The change in the
     functional currency from the peso to the U.S. dollar will not have a 
     material impact on the estimated loss on disposal of discontinued
     operations.


NOTE 2 - DISCONTINUED OPERATIONS

     On December 6, 1996, the Company's Board of Directors adopted a formal
     plan to dispose of its Foodservice and Consumer Products Tableware
     Divisions including the Company's foreign subsidiary in Mexico. These
     divisions have been accounted for as discontinued operations in accordance
     with APB 30, which among other provisions, requires the plan of disposal
     to be carried out within one year. Management believes this is a
     reasonable time period for the disposal. In February, the Company sold its
     Foodservice Division and it has plans underway to exit the Consumer
     Products Division, either through sale or termination of operations.
        
     Based on management's assumptions used in determining the estimated gain or
     loss from the disposal of the tableware business, the Company recorded a
     provision of $5.025 million, net of income taxes, for the loss on disposal
     of the discontinued business in the quarter ended December 31, 1996. 
     This loss on disposal of discontinued operations resulted from the 
     estimated net loss on the sale of the Foodservice Division and estimated
     net loss on the exit of the Consumer Products Division of approximately
     $4.167 million, net of income taxes, as well as estimated operating losses
     during the period required to dispose of the divisions of approximately
     $858,000, net of income taxes. 

     Sales of the divisions for the two months and five months of fiscal 1997 
     prior to the December 6th Board's decision to discontinue these 
     operations were $3.007 million and $7.678 million, respectively. Sales 
     for the three and nine month periods ended March 31, 1996 were $5.015 
     million and $15.46 million, respectively.

     The estimated loss for disposal is considered adequate at March 31, 1997.

     The net assets of discontinued operations are summarized as follows:

<TABLE>
<CAPTION>
                                   MARCH 31,          JUNE 30,
                                     1997               1996
                                 ------------         --------
($ in thousands)
<S>                              <C>                  <C>
Current assets                      $   7,693          $ 8,324
Plant, property and equipment           4,160            5,598
Intangible & other assets                 582              646
Current liabilities                      (289)            (385)
Accrued expenses                       (1,114)            (257)
Long term debt                         (1,000)          (1,000)
Deferred taxes                           (657)            (660)
Foreign Currency Translation              737              668
Provision for estimated loss 
  on disposal                          (4,458)              -
                                    ---------          -------
Net assets of discontinued 
  operations                        $   5,654          $12,934
                                    =========          =======
</TABLE>













NOTE 3 - INVENTORIES

<TABLE>
<CAPTION>
                                   March 31, 
                                     1997             June 30,
                                  (unaudited)           1996
                                 ------------         --------
                                        (in thousands)
<S>                               <C>                 <C>
Raw Materials                     $3,181              $  2,837
Work-in-process                      263                   328
Finished good                      2,579                 2,805
                                  ------              --------
                                   6,023                 5,970
Obsolescence reserve                (653)                 (559)
                                  ------              --------
                                  $5,370              $  5,411
                                  ======              ========
</TABLE>




                                       11
<PAGE>   12
NOTE 4 - LONG TERM DEBT

<TABLE>
<CAPTION>
                                                          March 31,                    
                                                            1997              June 30, 
                                                         (unaudited)           1996   
                                                         ----------          --------  
                                                               (in thousands)        
<S>                                                      <C>                 <C>
Term Loan                                                $13,242             $  5,818     
Revolving credit line                                      4,324               12,659     
Capital expenditures term loan                                --                8,437     
Industrial development revenue bonds                       2,063                2,175     
Capitalized lease obligations                                231                  192     
Real estate loan                                           1,915                   --
                                                         -------              -------  
Subtotal                                                  21,775               29,281 

Less: Debt financing expense                                (313)                  --
                                                         -------             --------  
                                                          21,462               29,281     
Current maturities on original                                                            
   maturity schedule                                      (6,270)              (2,277)    
Long term debt classified as current                          --              (23,880)    
                                                         -------             -------- 
                                                         $15,192             $  3,124     
                                                         =======             ========
</TABLE>

     On January 31, 1997, the Company refinanced its existing debt with a new
     lender to provide a total credit facility of $30 million in borrowings
     secured by substantially all the assets of the Company.  The facility
     provides for borrowings under three separate arrangements - (i) a term
     loan in an aggregate principal amount of $10 million payable in monthly
     installments through January 31, 2000. (ii) a second term loan in an
     aggregate principal amount of $5 million payable in monthly installments
     beginning January 1, 1998 through January 31, 2000, and (iii) a $15.0
     million revolving loan, due January 31, 2000.  As of March 31, 1997,
     outstanding borrowings under the credit facility included $13.2 million 
     under the two term loans, and $4.3 million under the revolving credit 
     line.  At March 31, 1997, based on the Company's borrowing formula 
     incremental borrowing availability was approximately $8.7 million under 
     the revolving credit line. The credit facility provides for the issuance 
     of up to $2.0 million of letters of credit, subject to the borrowing 
     availability under the revolving credit line.  The loan agreement  
     contains various covenants, including maintaining certain financial ratios
     and tests, limitation on the issuance of debt and the amount of capital 
     expenditures, capital leases, investments and dividends.  The primary 
     financial covenants include quarter end calculations of leverage and 
     fixed charge coverage and a limitation on annual capital expenditures.
     In conjunction with the refinancing, the Company issued 100,000 shares of
     its common stock to the new lender, recording debt issuance cost of
     $313,000.   
 
     As the Company is currently in compliance with the loan covenants on its
     new debt, the Company has classified its outstanding debt as current or
     long term based upon maturity obligations. 


                                       12
<PAGE>   13
Item II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

     Three Months Ended March 31, 1997, Compared to the Three Months
               Ended March 31, 1996 for Continuing Operations

     Sales for the three months ended March 31, 1997, increased $2,122,000
     or 13.2%, when compared to the same period in 1996.  Closure Division's
     sales increased 1.0%. Chemical Division's sales increased 22.9% due 
     primarily to a large non-recurring customer order.

     Cost of sales as a percentage of net sales increased to 82.6% from 81.8%.
     The decrease in gross margin was primarily the result of product mix with
     larger volumes of lower margin product being sold in the fiscal 1997 
     quarter.

     Selling, general and administrative expense ("SG&A") decreased $885,000
     to 10.0% of sales for the three months ended March 31, 1997 as compared to 
     16.9% of sales for the three months ended March 31, 1996. This decrease 
     is primarily the result of certain non-recurring severance and related
     expenses associated with the termination of the former President of the 
     Company in February 1996.

     Interest expense has increased $112,000 for the three months ended
     March 31, 1997 compared to the three months ended March 31, 1996 primarily
     due to an increase in interest rates as a result of the new bank financing
     completed in January 1997.

     Net income from continuing operations increased $745,000 from the 
     comparable prior fiscal period primarily due to the increased sales 
     volumes in the current period and unusual expenses in the prior period
     discussed above.


                                       13
<PAGE>   14
Item II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

     Nine Months Ended March 31, 1997, Compared to the Nine Months
     Ended March 31, 1996 for Continuing Operations

     Sales for the nine months ended March 31, 1997, increased $6,183,000
     or 14.2%, when compared to the same period in 1996.  Closure Division's
     sales increased 7.8% and Chemical Division's sales increased 19.9% both 
     due to increased customer orders, certain of which are non-recurring in
     the Chemical Division.

     Cost of sales as a percentage of net sales decreased to 80.9% from 82.4%.
     This improvement in gross margin was due primarily to the increased sales
     volume.

     Selling, general and administrative expense ("SG&A") decreased $380,000.
     As a percent of sales, it decreased from 14.7% of sales for the nine
     months ended March 31, 1996 to 12.1% of sales for the nine months ended 
     March 31, 1997. This is primarily due to a non-recurring  $375,000 
     severance payment made to the former President of the Company in February 
     1996, and other related expenses.
     
     Interest expense has increased $348,000 for the nine months ended
     March 31, 1997 compared to the nine months ended March 31, 1996 primarily
     due to an increase in interest rates with the new bank financing completed
     in January 1997.

     Net income from continuing operations increased $1,358,000 from the 
     comparable prior fiscal period primarily due to increased sales volumes in
     fiscal 1997 and the unusual severance payment in fiscal 1996, discussed
     above.

     Discontinued Operations

     On December 6, 1996, the Company's Board of Directors adopted a formal plan
     to dispose of its Foodservice and Consumer Products Tableware Divisions.
     These divisions have been accounted for as discontinued operations in
     accordance with APB 30, which among other provisions, requires the plan of
     disposal to be carried out within one year. Management believes this is a
     reasonable time period for the disposal. In February, the Company sold its
     Foodservice Division and it has plans underway to exit the Consumer 
     Products Division, either through sale or termination of operations.

     Based on management's assumptions used in determining the estimated gain or
     loss from the disposal of the tableware business, the Company recorded a
     provision of $5.025 million, net of income taxes, for the loss on disposal
     of the discontinued business in the quarter ended December 31, 1996. 
     This loss on disposal of discontinued operations resulted from the 
     estimated net loss on the sale of the Foodservice Division and estimated
     net loss on the exit of the Consumer Products Division of approximately
     $4.167 million, net of income taxes, as well as estimated operating losses
     during the period required to dispose of the divisions of approximately
     $858,000, net of income taxes. 

     Sales of the divisions for the three months and nine months of fiscal 1997
     were $6.737 million and $15.848 million, respectively. Comparable sales
     for the three and nine month periods ended March 31, 1996 were $5.015
     million and $15.446 million, respectively.  The Consumer Products and
     Foodservice Divisions' sales increased 34.3% and 2.6% for the three month
     and nine month periods ended March 31, 1997 as compared to the prior year
     comparable periods. These sales increases were a result of one large
     non-recurring order in fiscal 1997.
        
     Liquidity and Capital Resources

     Management reviews the Company's working capital, accounts receivable and
     relationship of debt to equity on a continuing basis. The Company's growth
     has been financed through long-term debt financing and cash generated from
     operations. During the nine months ended March 31, 1997, the Company
     repaid net borrowings by $7.5 million. Cash flow from operations 
     generated $8.55 million.

     Capital expenditures for the nine months ended March 31, 1997 were
     $3.9 million including approximately $2 million for the purchase, in 
     January 1997, of a second facility to expand capacity in the Closures 
     Division in Florida. Anticipated future capital additions should 
     approximate less than $2 million for the remainder of fiscal 1997. 

     In January 1997, the Company refinanced its existing debt with a new lender
     to provide a total credit facility of $30 million in borrowings secured by
     substantially all the assets of the Company. The facility provides for
     borrowings under three separate arrangements - (i) a term loan in an
     aggregate principal amount of $10 million payable in monthly installments
     through January 31, 2000, (ii) a second term loan in an aggregate 




                                       14
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<PAGE>   15
     principle amount of $5 million payable in monthly installments beginning
     January 1, 1998 through January 31, 2000, and (iii) a $15.0 million
     revolving loan, due January 31, 2000. As of March 31, 1997, outstanding
     borrowings under the credit facility included $13.2 million under the two
     term loans and $4.3 million under the revolving credit line. At March 
     31, 1997, based on the Company's borrowing formula incremental borrowing
     availability was approximately $8.7 million under the revolving credit
     line. The credit facility provides for the issuance of up to $2.0 million
     of letters of credit, subject to the borrowing availability under the
     revolving credit line. The loan agreement contains various covenants,
     including maintaining certain financial ratios and tests, limitation on the
     issuance of debt and the amount of capital expenditures, capital leases,
     investments and dividends. The primary financial covenants include quarter
     end calculations of leverage and fixed charge coverage and a limitation on
     annual capital expenditures.

     The Company's plan to discontinue its Tableware business should not have an
     overall material impact on liquidity. Certain cash proceeds will be
     received from the sale of its Foodservice Division and there will be
     offsetting cash needs related to severance, relocation and other costs of
     discontinuing the Consumer Products Division. The majority of costs related
     to the discontinuation of the Tableware business are non-cash.

     Management believes internally generated funds should be adequate to meet
     future debt repayments and capital expenditure needs. 

     The Company's Mexican subsidiary, included in discontinued operations, is
     subject to currency risk to the extent its net assets, denominated in
     pesos, devalues against the U.S. dollar.

     Disclosures Regarding Forward-Looking Statements

     This report on Form 10-Q includes "forward-looking statements" within the
     meaning of Section 27A of the Securities Act of 1933, as amended, and
     Section 21E of the Securities Exchange Act of 1934, as amended. All
     statements other than statements of historical facts included in this Form
     10-Q, including, without limitation, statements contained in this
     "Management's Discussion and Analysis of Financial Condition and Result of
     Operations" regarding the Company's financing alternatives, financial
     position, business strategy, plans and objectives of management of the
     Company for future operations, and industry conditions, are
     forward-looking statements. Although the Company believes that the
     expectations reflected in any such forward-looking statements are
     reasonable, it can give no assurance that such expectations will prove to
     have been correct. Any forward-looking statements herein are subject to
     certain risks and uncertainties in the Company's business, including but
     not limited to, the intense competition in its markets, its recent
     experience of increasing raw material prices, the absence of assurance of
     strategic and financing alternatives, Mexican currency fluctuations and
     its reliance on certain key customers; all of which may be beyond the
     control of the Company. Any one or more of these factors could cause
     actual results to differ materially from those expressed in any forward-
     looking statement. All subsequent written and oral forward-looking
     statements attributable to the Company or person acting on its behalf are
     expressly qualified in their entirety by the cautionary statements
     disclosed in this paragraph and otherwise in this report.





                                       15
<PAGE>   16
                           SUN COAST INDUSTRIES, INC.
                                MARCH 31, 1997

PART II - OTHER INFORMATION

     Item 1 - Legal Proceedings

     None.

     Item 2 - Changes in Securities

     None.

     Item 3 - Defaults Upon Senior Securities

     None.

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

     None.

     Item 5 - Other Information

     Item 6 - Exhibits and Reports in Form 8K

        (a)   Exhibits:
       
       27     Financial Data Schedule





                                       16
<PAGE>   17
                                   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.

                         Sun Coast Industries, Inc.
                         ------------------------------------------------------
                         Registrant

5/14/97                  By: /s/ EDDIE LESOK
--------                     --------------------------------------------------
 Date                        Eddie Lesok, Chief Executive Officer and President

5/14/97                  By: /s/ CYNTHIA R. MORRIS
--------                     --------------------------------------------------
 Date                        Cynthia R. Morris, CFO, Secretary and Treasurer



                                       17
<PAGE>   18


                                 EXHIBIT INDEX



Exhibit No.                    Description
-----------                    -----------
 
    27                         Financial Data Schedule