<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 September 30, 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 10, 1997, the latest practicable date.

          Class                            Outstanding at November 10, 1997
          -----                            --------------------------------
Common stock $0.01 par value                           4,117,629 


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

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

Item I - Financial Statements

   Condensed Consolidated Balance Sheets -- September 30, 1997
   and June 30, 1997                                               3

   Condensed Consolidated Statements of Income -- Three Months
   Ended September 30, 1997 and 1996                               5

   Condensed Consolidated Statements of Cash Flows -- Three
   Months ended September 30, 1997 and 1996                        6

   Notes to Condensed Consolidated Financial Statements            7

Item II - Management's Discussion and Analysis of Financial
   Condition and Results of Operations                            12

Part II. Other Information

Items 1 through 6                                                 15

</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>
                                                   September 30,
                                                     1997             June 30,   
                                                  (unaudited)           1997     
                                                  -----------         --------   
<S>                                                 <C>               <C>        
ASSETS                                                                           
                                                                                 
Current assets:                                                                  
  Cash and cash equivalents                         $    520          $    324   
  Accounts receivable, net of allowance for                                      
     doubtful accounts of $105 and $170                7,951             8,273   
  Inventories (Note 3)                                 4,159             4,358   
  Other current assets                                   126               145   
  Net assets of discontinued                                                     
    operations (Note 2)                                5,463             7,580   
                                                    --------          --------   
                                                                                 
     Total current assets                             18,219            20,680   
                                                                                 
Property, plant and equipment, net of accumulated                                
  depreciation of $25,182 and $24,367                 21,854            22,466   
Intangible assets                                        246               253   
Deferred income taxes                                    387                96
Other assets                                           1,875             1,834   
                                                    --------          --------   
                                                                                 
     Total assets                                   $ 42,581          $ 45,329   
                                                    ========          ========   
</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>                                        
                                                  September 30,
                                                      1997             June 30, 
LIABILITIES AND STOCKHOLDERS' EQUITY               (unaudited)          1997    
                                                    ----------        --------  
<S>                                                 <C>               <C>       
Current liabilities:                                                            
  Accounts payable                                  $  4,952          $  5,485  
  Accrued expenses                                     6,596             7,214  
  Current portion                                                               
     of long-term debt (Note 4)                        5,429             5,864  
                                                    --------          --------  
                                                                                
     Total current liabilities                        16,977            18,563  
                                                                                
Long-term debt (Note 4)                               11,995            13,455  
Deferred income taxes                                  1,482             1,485  
                                                    --------          --------  
                                                                                
     Total liabilities                                30,454            33,503  
                                                    --------          --------  
                                                                                
Stockholders' equity:                                                           
  Common stock, $.01 par value; 40,000,000                                      
     shares authorized; 4,117,629 and 4,117,629                                 
     respectively, issued and 4,117,629 and                                     
     4,104,229, respectively, outstanding                 41                41  
  Additional paid-in capital                          11,554            11,654  
  Treasury stock, 13,400 shares at cost                   --              (153) 
  Retained earnings                                      532               284  
                                                    --------          --------  
     Total stockholders' equity                       12,127            11,826  
                                                    --------          --------  
     Total liabilities and stockholders' equity     $ 42,581          $ 45,329  
                                                    ========          ========  
</TABLE>

     See accompanying notes to condensed consolidated financial statements.





                                       4
<PAGE>   5

                           SUN COAST INDUSTRIES, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (UNAUDITED)
                 (dollars in thousands, except per share data)

<TABLE>
<CAPTION>
                                              Three Months Ended      
                                                 September 30,
                                             ---------------------
                                              1997          1996    
                                             -------      --------
<S>                                          <C>          <C>         
Sales                                        $16,637       $ 15,996    
                                                                      
                                                                      
Costs and expenses:                                                   
  Cost of sales                               14,365         12,715    
  Selling, general and administrative          1,480          1,992    
  Interest, net                                  403            497    
                                             -------       --------

                                              16,248         15,204    
                                             -------       --------
                                                                      
Income before provision for income taxes         389            792     
Provision for income taxes                      (141)          (257)     
                                             -------       --------
     Income from continuing operations       $   248       $    535      
                                             =======       ========
Discontinued operations (Note 2)
  Loss from discontinued
    operations, net of income taxes
    of $145 for 1996                                           (345)
                                             -------       --------

  Net income                                 $   248       $    190 
                                             =======       ========

Net income (loss) per common share:
  Continuing operations                      $  0.06       $   0.14 
  Discontinued operations                         --          (0.07)
                                             -------       --------
Net income per common share                  $  0.06       $   0.07 
                                             =======       ========
</TABLE>

     See accompanying notes to condensed consolidated financial statements.




                                      5
<PAGE>   6
                           SUN COAST INDUSTRIES, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
                             (dollars in thousands)

 
 
<TABLE>
<CAPTION>                                                           Three Months Ended 
                                                                       September 30,    
                                                                   -------------------- 
                                                                     1997         1996 
                                                                   -------       -------
<S>                                                                <C>          <C>         
Cash flows from operating activities:                              
  Net income                                                        
  --------------------------------------------------------------------------------------
  Adjustments to reconcile net income (loss):                      $   248      $   189      
     Loss from discontinued operations                                  --          345
     Depreciation and amortization                                    1,159       1,466     
     Deferred income taxes                                            (294)       1,346
     Provision (credit) for doubtful accounts                          (64)           6
     Changes in assets and liabilities:                             
       Accounts receivable                                             387        1,245
       Inventories, net                                                199         (545)
       Other current assets                                            (14)         564
       Intangible and other assets                                     (99)        (717)
       Accounts payable and accrued expenses                        (1,151)        (305)
                                                                   -------      -------
          Net cash provided by continuing operations                   371        3,594
          Net cash provided (used) by discontinued operations        1,476       (1,762)
                                                                   -------      -------
          Net cash provided by operating activities                  1,847        1,832
                                                                   -------      -------
Cash flows from investing activities:                          
  Capital expenditures                                                (449)        (308)
  Proceeds from disposal of discontinued operations                    640           --
                                                                   -------      -------
       Net cash provided (used) in investing activities                191         (308)
                                                                   -------      -------
Cash flows from financing activities:                          
  Repayment of long-term debt                                       (1,895)        (735)
  Issuance of common stock                                              53           --
                                                                   -------      -------
       Net cash used by financing activities                        (1,842)        (735)
                                                                   -------      -------
Change in cash and cash equivalents                                    196          789
Cash and cash equivalents at beginning of period                       324        1,778
                                                                   -------      -------
Cash and cash equivalents at end of period                         $   520      $ 2,567
                                                                   =======      =======
</TABLE>

    See accompanying notes to condensed consolidated financial statements. 

                                       6


<PAGE>   7
                           SUN COAST INDUSTRIES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              SEPTEMBER 30, 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, 1997.

     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 plastic
     closures and melamine and urea resins and compounds. The Specialty Resins
     and Compounds Division manufactures melamine and urea resins and
     compounds, which it supplies to other manufacturers. 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 U.S., Canadian and Mexican retail and commercial markets.
 
     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.



                                       7
<PAGE>   8

                           SUN COAST INDUSTRIES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                SEPTEMBER 30, 1997

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

     Goodwill

     Goodwill, which represents the excess of purchase price over fair value of
     net identifiable 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.

     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.

     Stock Option Plan
 
     Prior to July 1, 1996, the Company accounted for its stock option plan in
     accordance with the provisions of Accounting Principles Board ("APB")
     Opinion No. 25, Accounting for Stock Issued to Employees, and related
     interpretations. As such, compensation expense would be recorded on the
     date of grant only if the current market price of the underlying stock
     exceeded the exercise price. On July 1, 1996, the Company adopted SFAS No.
     123, Accounting for Stock-Based Compensation, which permits entities to
     recognize as expense over the vesting period the fair value of all
     stock-based awards on the date of grant. Alternatively, SFAS No. 123 also
     allows entities to continue to apply the provisions of APB Opinion No. 25
     and provide pro forma net income and pro forma earnings per share
     disclosures for employee stock option grants made in fiscal 1996 and
     future years as if the fair-value-based method defined in SFAS No. 123 had
     been applied. The Company has elected to continue to apply the provisions
     of APB Opinion No. 25 and provide the pro forma disclosure provisions of
     SFAS No. 123. 

     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 September 30, 1997 and June 30, 1997.

     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.




                                      8
<PAGE>   9
                           SUN COAST INDUSTRIES, INC.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              SEPTEMBER 30, 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. Cash equivalents at September 30, 1997 and June
     30, 1997 were not significant.

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 and to
     consider strategic alternatives related to the on-going business. These
     divisions have been accounted for as discontinued operations in accordance
     with Accounting Principles Board Opinion No. 30.  Management believes this
     disposal will be carried out by June 30, 1998. In February 1997, the
     Company sold its Foodservice Division for cash proceeds of $2,104,000 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 $4,855,000, net of income taxes, for the loss on disposal
     of the discontinued business in the fiscal year ended June 30, 1997. 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 Tableware Division of    approximately
     $3,997,000, 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 five months of fiscal 1997  prior to the
     December 6th Board's decision to discontinue these  operations were
     $7,678,000. Sales  for the three month periods ended September 30, 1997
     and 1996 were $1,458,000 and $4,671,000, respectively.

     The remaining reserve for loss on disposal is considered adequate at
     September 30, 1997 to cover estimated future costs of disposal of the
     Consumer Products Tableware Division.





                                         9

<PAGE>   10
     The net assets of discontinued operations are summarized as follows:

<TABLE>
<CAPTION>
                                            SEPTEMBER 30,        JUNE 30,    
                                                1997               1997      
                                            (unaudited)                      
                                            ------------         --------    
           ($ in thousands)                                                  
           <S>                              <C>                  <C>         
           Current assets                      $ 4,068            $ 6,401    
           Plant, property and equipment         3,770              4,117    
           Intangible & other assets               498                503    
           Current liabilities                    (382)              (280)   
           Accrued expenses                     (1,132)              (870)   
           Long term debt                           --             (1,000)   
           Deferred taxes                          967              1,309    
           Foreign Currency Translation            737                737    
           Provision for estimated loss                                      
             on disposal                        (3,063)            (3,337)   
                                               -------            -------    
           Net assets of discontinued                                        
             operations                        $ 5,463            $ 7,580    
                                               =======            =======    
</TABLE>


NOTE 3 - INVENTORIES

<TABLE>
<CAPTION>
                                            September 30,                  
                                                1997             June 30,  
                                             (unaudited)           1997    
                                            ------------         --------  
                                                   (in thousands)          
           <S>                               <C>                 <C>       
           Raw Materials                     $2,329              $  2,169  
           Work-in-process                      324                   384  
           Finished good                      2,253                 2,439  
                                             ------              --------  
                                              4,906                 4,992  
           Obsolescence reserve                (747)                 (634) 
                                             ------              --------  
                                             $4,159              $  4,358  
                                             ======              ========  
</TABLE>




                                       10
<PAGE>   11
NOTE 4 - LONG TERM DEBT

<TABLE>
<CAPTION>
                                                 September 30,        June 30,
                                                    1997                1997   
                                                 (unaudited)                
                                                 ----------          --------   
                                                       (in thousands)           
      <S>                                        <C>                 <C>        
      Term Loan                                  $12,820             $ 13,742   
      Revolving credit line                        2,737                3,643   
      Industrial development revenue bonds         1,988                2,025   
      Capitalized lease obligations                  122                  178   
                                                 -------              -------   
      Subtotal                                    17,667               19,588   
                                                                                
      Less: Debt financing expense                  (243)                (269)  
                                                 -------             --------   
                                                  17,424               19,319   
      Current maturities on original                                            
         maturity schedule                        (5,429)              (5,864)  
                                                 -------             --------   
                                                 $11,995             $ 13,455   
                                                 =======             ========   
</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
     million revolving loan, due January 31, 2000.  As of September 30, 1997,
     outstanding borrowings under the credit facility included $12.8 million 
     under the two term loans, and $2.7 million under the revolving credit 
     line.  At September 30, 1997, based on the Company's borrowing formula 
     incremental borrowing availability was approximately $6.3 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 net worth, working
     capital 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.
 
     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. 



                                       11
<PAGE>   12
Item II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

     Three Months Ended September 30, 1997, Compared to the Three Months
               Ended September 30, 1996 for Continuing Operations

     Sales for the three months ended September 30, 1997 increased $641,000 or
     4.0%, when compared to the same period in 1996 due primarily to increased
     customer demand.

     Cost of sales as a percentage of net sales increased to 86.3% from
     79.5%. The decrease in gross margin was primarily the result of volume
     decreases affecting absorption as well as certain price reductions in the 
     Closure's division.  In the Chemical division, a worldwide shortage of 
     one of it's primary raw materials resulted in cost increases that were 
     not passed through until the second quarter.

     Selling, general and administrative expense ("SG&A") decreased $512,000
     to 8.9% of sales for the three months ended September 30, 1997 as compared
     to 12.5% of sales for the three months ended September 30, 1996. This
     decrease is primarily the result of non-recurring legal expenses incurred
     in the comparable prior fiscal period.
        
     Interest expense has decreased $94,000 for the three months ended
     September 30, 1997 compared to the three months ended September 30, 1996 
     primarily due to the Company's effort to pay down the long-term debt
     facility offset by an increase in interest rates as a result of the new 
     bank financing completed in January 1997.
        
     Net income from continuing operations decreased $287,000 from the 
     comparable prior fiscal period primarily due to the margin shrinkage
     related to raw material price increases discussed above.
        

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

     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 and to
     consider strategic alternatives related to the on-going business. These
     divisions have been accounted for as discontinued operations in accordance
     with Accounting Principles Board Opinion No. 30.  Management believes this
     disposal will be carried out by June 30, 1998. In February 1997, the
     Company sold its Foodservice Division for cash proceeds of $2,104,000 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 $4,855,000 million, net of income taxes, for the loss on
     disposal of the discontinued business in the fiscal year ended June 30,
     1997. 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 Tableware Division of
     approximately $3,997,000 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 five months of fiscal 1997  prior to the
     December 6th Board's decision to discontinue these  operations were
     $7,678,000. Sales  for the three month periods ended September 30, 1997
     and 1996 were $1,458,000 and $4,671,000 respectively.

     The remaining reserve for loss on disposal is considered adequate at
     September 30, 1997 to cover estimated future costs of disposal of the
     Consumer Products Tableware Division.

     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 three months ended September 30, 1997, the Company
     repaid net borrowings by $1.9 million. Cash flow from continuing 
     operations generated $0.2 million.

     Capital expenditures for the three months ended September 30, 1997 were
     $0.4 million. Anticipated future capital additions should approximate
     less than $3 million for the remainder of fiscal 1998. 
        
     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
        



                                       13
<PAGE>   14
     aggregate principle amount of $5 million payable in monthly installments 
     beginning January 1, 1998 through January 31, 2000, and (iii) a $15
     million revolving loan, due January 31, 2000. As of September 30, 1997,
     outstanding borrowings under the credit facility included $12.8 million
     under the two term loans and $2.7 million under the revolving credit line.
     At September 30, 1997, based on the Company's borrowing formula
     incremental borrowing availability was approximately $6.3 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 net worth, working
     capital 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 were
     received from the sale of its Foodservice Division and there were
     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.




                                        14
<PAGE>   15
                           SUN COAST INDUSTRIES, INC.
                              September 30, 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





                                       15
<PAGE>   16
                                   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

11/10/97                 By: /s/ EDDIE M. LESOK
--------                     --------------------------------------------------
 Date                        Eddie Lesok, Chief Executive Officer and President

11/10/97                 By: /s/ CYNTHIA R. MORRIS
--------                     --------------------------------------------------
 Date                        Cynthia R. Morris, CFO, Secretary and Treasurer



                                       16
<PAGE>   17


                                 EXHIBIT INDEX



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