SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES ACT OF 1934
For the transition period from _________ to _____________________
Commission File Number: 1-5673
.............................RANGER INDUSTRIES, INC.............................
(Exact name of small business issuer as specified in its charter)
Connecticut 06-0768904
(State of other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
One Regency Drive
.........................Bloomfield, Connecticut 06002.........................
(Address of principal executive offices)
..................................(860) 726-1208................................
(Issuer's telephone number, including area code)
Check whether the issuer: (1) 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 / /
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date (August 12, 1998): 5,288,644 shares
Transitional Small Business Disclosure Format (check one): Yes / / No /X/
744634.6
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
CONDENSED BALANCE SHEETS
September 30, 1998 and December 31, 1997
-------
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
---- ----
(Unaudited)
<S> <C> <C>
Current assets:
Cash and equivalents $ 781,792 $ 784,800
Prepaid expenses 35,418 -
Income tax receivable 4,642 3,446
----------- ---------
Total current assets 821,852 788,246
Other assets:
Prepaid compensation expense 91,003 -
----------- ---------
Total assets $ 912,855 $ 788,246
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other liabilities $ 26,248 $ 19,918
Deferred Income taxes 2,708
Accrued interest payable - 16,337
Note payable to Pure Group, Inc. - 196,477
Other amounts owed to Pure Group, Inc. - 265,303
----------- ---------
Total current liabilities 20,368 498,035
Non-current liabilities:
Deferred income taxes 8,391 -
----------- ---------
Total liabilities 20,368 498,035
----------- ---------
Stockholders' equity:
Common stock 52,886 40,000
Capital in excess of par value 1,661,330 985,000
Retained deficit (830,120) (734,789)
----------- ---------
Total stockholders' equity 884,096 290,211
----------- ---------
Total liabilities and stockholders' equity $ 912,855 $ 788,246
=========== =========
</TABLE>
The accompanying notes are an integral part
of the condensed financial statements.
744634.6
2
<PAGE>
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
for the quarters ended September 30, 1998 and 1997
(Unaudited)
-------
1998 1997
---- ----
Net sales $ - $ -
---------- ----------
Operating costs and expenses:
Administrative expenses 59,983 37,513
Legal and settlement expenses 2,000 7,020
Proxy contest and annual meetings expenses - 249,815
Other income and (expenses):
Bad debt recoveries income 711 802,160
Interest expense - (8,082)
Interest income 8,959 -
---------- ----------
Income (loss) before income taxes (52,313) 499,730
---------- ----------
Provision (benefit) for income taxes 2,100 8,000
Current (4,600) -
Deferred 11,099 -
---------- ----------
Net comprehensive income loss (58,812) 499,730
---------- ----------
Basic income (loss) per share $ (.01) $ (.03)
========== ==========
Weighted average common stock outstanding 4,893,040 4,000,000
========== =========
The accompanying notes are an integral part
of the condensed financial statements.
744634.6
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<PAGE>
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
for the nine months ended September 30, 1998 and 1997
(Unaudited)
-------
1998 1997
---- ----
Net sales $ - $ -
----------- ----------
Operating costs and expenses:
Administrative expenses 84,300 98,738
Legal and settlement expenses 24,384 104,020
Proxy contest and annual meeting expenses - 249,815
Other income and (expenses):
Bad debt recoveries income 2,603 802,160
Interest expense (5,498) (8,082)
Interest income 27,347 7
---------- ----------
Income loss before income taxes (84,232) 341,512
---------- ----------
Provision for income taxes:
Current - 8,000
Deferred 11,099 -
---------- ----------
Net comprehensive income (loss) (95,331) 333,512
---------- ----------
Basic income (loss) per share $ (.02) $ (.08)
=========== ==========
Weighted average common stock outstanding 4,696,601 4,000,000
========== ==========
The accompanying notes are an integral part
of the condensed financial statements.
744634.6
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<PAGE>
<TABLE>
<CAPTION>
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
CONDENSED STATEMENTS OF CASH FLOWS
for the nine months ended September 30, 1998 and 1997
(Unaudited)
-------
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net comprehensive income (loss) to $(95,331) $ 333,512
-------- ---------
Adjustments to reconcile net comprehensive loss to
net cash used in operating activities:
Interest expense settled in shares of Ranger stock 5,498 -
Compensation expense settled in shares of Ranger stock 36,997 -
Changes in assets and liabilities:
Bad debt recoveries receivables (1,196) -
Prepaid expenses (3,418) (7,706)
Accounts payable, accrued liabilities and interest payable (2,258) (15,897)
Increase in deferred income taxes 11,099
-------- ---------
Total adjustments 4,692 124,353
-------- ---------
Net cash used in operating activities (31,827) (41,865)
-------- ---------
Cash flows from financing activities:
Distribution from reorganization trust 45,601 -
Proceeds from note payable to Pure Group, Inc. - 196,477
Other proceeds from Pure Group, Inc. - 263,338
-------- ---------
Net cash provided by financing activities 45,601 459,815
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period 784,800 43,009
-------- ---------
Cash and cash equivalents at end of period $781,792 $ 13,504
======== =========
Noncash transactions:
Common stock issued in exchange for the cancellation
of amount owed to PGI $483,616 $ -
======== =========
Common stock issued in exchange for employment services $160,000 $ -
======== =========
</TABLE>
The accompanying notes are an integral part
of the condensed financial statements.
744634.6
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<PAGE>
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
NOTES TO CONDENSED FINANCIAL STATEMENTS
-------
1. Organization:
In July 1988, Ranger Industries, Inc. (the "Registrant" or the
"Company", and then known as Coleco Industries, Inc.) filed a voluntary
petition in United States Bankruptcy Court under Chapter 11 of the
Federal Bankruptcy Code. Effective February 28, 1990, the bankruptcy
court approved a plan of reorganization (the "Plan"), pursuant to which
all then outstanding debt and equity securities of the Registrant were
canceled, and 4,000,000 shares of the Registrant's new $0.01 par value
common stock (the "Common Stock") were distributed to the unsecured
creditors. On the Effective Date of the Plan, the Registrant retained
$950,000 in cash for working capital purposes and was expected to
engage in the business of acquiring income producing properties or
businesses.
The Plan provided for the creation of a Reorganization Trust in order
to liquidate the Registrant's remaining assets (other than the $950,000
in cash retained by the Registrant) and effectuate distributions
thereof to the Registrant's creditors. The Reorganization Trust
completed the distribution of its assets in May, 1996 and was
terminated by order of the bankruptcy court on August 27, 1996. Also
see Note 8.
The Plan also provided for the creation of a Product Liability Trust in
order to settle certain personal injury claims (including claims
arising thereafter) against the Registrant. The Product Liability Trust
continues to process and liquidate certain product liability claims.
Pursuant to the terms of the Product Liability Trust Agreement,
residual funds, if any, will revert to the Registrant, as grantor of
the trust, upon the earlier of (a) February 28, 2020, or (b) approval
by the bankruptcy court of earlier termination of the Product Liability
Trust.
2. Change In Control:
Following the conclusion of a hostile proxy contest (the "Proxy
Contest"), initiated by Pure Group, Inc. ("PGI") during the second
quarter of 1997, the Company's former directors resigned from the Board
of Directors effective July 29, 1997, and new directors were elected.
The terms under which this change in control took place are outlined in
a settlement agreement dated July 29, 1997 between PGI, the Company and
the Company's former directors (the "Settlement Agreement"). Under the
terms of the Settlement Agreement, and as set forth in a demand
promissory note dated July 29, 1997, PGI loaned the Company $196,477 to
pay its
774634.6
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<PAGE>
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
NOTES TO CONDENSED FINANCIAL STATEMENTS, Continued
-------
then outstanding obligations. The note required the Company to pay
interest to PGI at two percentage points above the prime rate (8.5% at
December 31, 1997). Additionally, PGI loaned the Company $251,780 to
cover costs incurred in connection with the Proxy Contest, including
the costs of holding the 1997 annual meeting and $13,523 for working
capital purposes. These additional loans of $265,303 were subject to
the same terms outlined in the demand promissory note. Also, see Note
6.
3. Management's Representation:
The accompanying condensed financial statements should be read in
conjunction with the Notes to Financial Statements and Management's
Discussion and Analysis of Financial Condition and results of
operations included in the Company's 1997 Annual Report filed on Form
10-KSB and in this Form 10-QSB report.
In the opinion of management, all adjustments necessary for a fair
presentation of the results for the interim periods have been made.
4. Income Taxes:
Effective January 1, 1993, the Company adopted Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS
109"). SFAS 109 requires recognition of deferred tax liabilities and
assets for the expected future tax consequences of events that have
been included in the financial statements or income tax returns. Under
this method, deferred tax liabilities and assets are determined based
on the difference between the financial statement and tax bases of
assets and liabilities using enacted tax rates in effect for the year
in which the differences are expected to reverse. In addition, deferred
tax assets are subject to a valuation allowance to reduce them to net
realizable value.
As discussed in Note 1, the assets and liabilities of the Company,
except for $950,000 retained for working capital purposes, were
transferred to the Reorganization and Product Liability Trusts,
respectively, effective February 28, 1990, in accordance with the Plan.
Although the matter is not free from doubt, these Trusts have been
treated as grantor trusts. Accordingly, taxable income or loss
associated with the disposition of assets and the settlement of
liabilities by the Trusts are reflected on the federal income tax
return of Ranger Industries, Inc.,
774634.6
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<PAGE>
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
NOTES TO CONDENSED FINANCIAL STATEMENTS, Continued
-------
although such assets and liabilities are not presented in these
financial statements (also see Note 5).
Tax expense or benefit is attributable to state taxes and Federal
alternative minimum tax.
4. Income Taxes, Continued:
At September 30, 1998 and December 31, 1997, it was estimated that the
Company had adjusted tax net operating loss carryforwards and future
deductions of approximately $182.1 million after giving effect to the
Plan and the transactions contemplated thereby, which may be used to
offset future taxable income, subject to several limitations, and which
begin to expire in the year 2002. These amounts include the tax
consequences of the activity of the Reorganization and Product
Liability Trusts, as well as the activity of Ranger Industries, Inc. At
September 30, 1998 and December 31, 1997 the Company had Alternative
Minimum Tax (AMT) loss carryforwards of approximately $153.8 million
which will also begin to expire in the year 2002. The Company also had
approximately $7.7 million of tax credit carryforwards at September 30,
1998 and December 31, 1997 respectively. At the current tax rates, the
taxable income equivalent of the credit carryforwards is approximately
$22.6 million.
Under current tax laws, the Internal Revenue Code provides for certain
limitations following an "ownership change". Accordingly, under the
confirmed Plan of Reorganization, the continued availability of the
Company's net operating loss carryforwards and other tax attributes may
be subject to substantial limitations (also see Note 5).
At September 30, 1998, the Company had deferred tax liabilities of
$11,099, a compensation expense temporary difference. There were no
deferred tax liabilities at December 31, 1997. Additionally, any
deferred tax asset recorded to recognize the tax net operating loss
carryforwards would be subject to a full valuation allowance under the
provisions of SFAS 109, due to the uncertainty of the Company's ability
to generate taxable income to utilize the carryforwards.
774634.6
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<PAGE>
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
NOTES TO CONDENSED FINANCIAL STATEMENTS, Continued
-------
5. Treasury Regulation:
On January 6, 1992, the Department of the Treasury promulgated new
Treasury Regulations. These regulations interpret Section 269 of the
Internal Revenue Code which permits the Internal Revenue Service to
deny corporations the ability to use tax benefits, such as net
operating losses ("NOLs") where control of the corporation was acquired
for the principal purpose of avoiding tax. The regulations provide that
if a corporation in a bankruptcy reorganization that qualifies for an
exemption from the general rule limiting the use of net operating loss
carryforwards does not carry on a significant amount of an active trade
or business during and subsequent to such bankruptcy reorganization,
the Internal Revenue Service will presume, absent a showing of strong
evidence to the contrary, that the principal purpose of the
reorganization was to evade or avoid Federal income tax and that
Section 269 should apply. The regulations are only effective, by their
terms, with respect to acquisitions of control of corporations
occurring after August 14, 1990 and, accordingly, they do not apply to
Ranger Industries, Inc.
Despite the inapplicability of these regulations to Ranger, the issue
of essentially inactive reorganized companies with NOLs that survive
bankruptcy intact has now been firmly raised in the eyes of the
Internal Revenue Service. Accordingly, due to the Company's disposition
of its historic toy businesses it is possible that the Internal Revenue
Service may assert that the Company has not carried on a significant
trade or business during and subsequent to its reorganization. If such
an assertion is made and ultimately sustained, then the Company would
be unable to utilize its estimated $182.1 million of net operating loss
carryforwards. This could have a materially adverse effect on the
Company's ability to attract outside investors willing to invest in the
Company. Notwithstanding these regulations, there can be no assurance
that the Company will be able to attract sufficient outside investment
to allow it to continue to operate, once its current working capital is
depleted. The condensed financial statements do not include any
adjustments that might result from the resolution of these
uncertainties.
6. PGI Indebtedness:
On March 9, 1998, the Company issued 788,644 shares of its $.01 par
value common stock in exchange for the cancellation of the amount owed
to PGI as of February 10, 1998. The exchange value of $.6132/share was
determined using the weighted average of the closing prices of the
Company's common stock for the 30-day period prior to February 20,
1998, the date of the agreement.
774634.6
9
<PAGE>
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
NOTES TO CONDENSED FINANCIAL STATEMENTS, Continued
-------
7. Stock Compensation:
On August 4, 1998, the Company entered into a five-year Employee
Agreement (the "Agreement") with Mr. Morton E. Handel, where Mr. Handel
will serve as the Company's Chief Executive Officer and President. As
base compensation, in lieu of cash, Mr. Handel received 500,000 shares
of the Company's stock, one-fifth of which is immediately vested and
non-forfeitable as of the date of the Agreement. Mr. Handel will vest
an additional 20 percent each year over the next four anniversaries of
the Agreement.
The estimated market value of the stock award was $160,000 or $.32 per
share. The Company will incur compensation expense based on the vesting
terms included in the Agreement. For the quarter ended September 30,
1998, the Company recognized compensation expense of $40,031, including
related taxes, in connection with this stock award, which is included
in administrative expenses in the condensed financial statements.
8. Distribution from Ranger Industries, Inc.'s Reorganization Trust:
As described in Note 1, the Reorganization Trust made what was expected
to be its final distribution to creditors on May 29, 1996. In August
1998, however, the Company received an additional distribution of
$45,601 from the former Reorganization Trust's trustee. This amount has
been reflected as an adjustment to the original capitalization of the
Company and, accordingly, is included in capital in excess of par value
at September 30, 1998.
9. Related Party Transactions:
The Company had an Agreement with M.D. Sass Associates, Inc. ("SASS")
of which James B. Rubin is Senior Managing Director, under which SASS
provided accounting, administrative, financial, legal, secretarial and
other support services at the Company's request. The Company incurred
costs of $4,800 for these services for each of the quarters ended March
31, and June 30, 1997. In connection with
774634.6
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<PAGE>
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
NOTES TO CONDENSED FINANCIAL STATEMENTS, Continued
-------
the change in control described in Note 2, this agreement was
terminated. All amounts owed to SASS in connection with this agreement
were paid during the quarter ended September 30, 1997.
Effective August 1, 1990, Mr. Rubin, as Chief Executive Officer, was
entitled to an annual salary of $50,000, through the date of the change
in control (see Note 2). All fees for his services are included in
administrative expenses in the condensed financial statements. All
amounts owed to Mr. Rubin in connection with this agreement were paid
during the quarter ended September 30, 1997.
Also, see Notes 2, 6 and 7.
774634.6
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<PAGE>
PART I - FINANCIAL INFORMATION (cont'd)
Item 2. Management's Discussion and Analysis or Plan of Operation.
Overview. The Registrant emerged from a Chapter 11 bankruptcy
proceeding in 1990 with $950,000 in cash and no liabilities. In the years
from 1990 through 1996, the Registrant's only material source of revenue was
interest on its cash, except that in the last quarter of 1996, the
Registrant received a distribution of approximately $75,000 from a trust
(the "Reorganization Trust") which was established in the bankruptcy
proceeding to liquidate the Registrant's assets and distribute the net
proceeds to the claimants in the bankruptcy proceeding. In the period from
1990 through 1996, the Registrant's expenses always exceeded earnings. As of
December 31, 1996, the Registrant had a retained deficit of approximately
$1,046,000, and, as of that date, had no business and no material financial
resources. Current management gained control of the Registrant in a proxy
contest that ended in the third quarter of 1997. In the fourth quarter of
1997, the Registrant received approximately $800,000 from a bankruptcy claim
filed by the Registrant in 1983. In the third quarter of 1998, the
Registrant received a distribution of approximately $46,000 from the trustee
of the Reorganization Trust.
As a result of the receipt of $800,000 in the last quarter of 1997 and
$46,000 in the third quarter of 1998, the Registrant now has sufficient
liquidity to meet its current operating expenses for the foreseeable future.
The Registrant's cash on hand was approximately $782,000 as of September 30,
1998, and the Registrant's projected cash operating costs and expenses for
the fiscal year ending December 31, 1998, are approximately $100,000.
Average annual operating expenses in the years 1994 - 1996 were
approximately $174,000. Operating expenses in 1997 were substantially higher
than in the prior years because of the expenses incurred in connection with
the proxy contest.
Business Plans, Liquidity and Financial Resources. The Registrant's
financial resources at the present time, other than its cash on hand, are
(i) a remainder interest in the Product Liability Trust (see the following
paragraph), and (ii) the possible utility of net operating loss
carryforwards ("NOLs") of approximately $182 million as of September 30,
1998. See Note 4, Income Taxes, in the Condensed Financial Statements
(unaudited) included in Part I of this Report.
774634.6
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<PAGE>
Product Liability Trust. The Product Liability Trust processes and
liquidates product liability claims asserted and makes distributions to
holders of settled or adjudicated claims. The trust contained assets of
approximately $12 million as of September 30, 1998. Under the terms of the
Product Liability Trust, the residual funds, if any, remaining after
distribution of all Trust assets to pay product liability claims and
expenses would be distributed to the Registrant on February 28, 2020. The
bankruptcy court is authorized to permit an earlier payout in its
discretion, and the Registrant may apply to the bankruptcy court seeking
early termination of the Trust. The Registrant does not expect to consider
making such an application until claims against the Trust are settled.
NOLs. The NOLs have sheltered the Registrant's modest interest income
and the income of the Product Liability Trust. The income of the Product
Liability Trust, if any, continues to be taxable to the Registrant. As more
fully discussed in the Notes to the Financial Statements, the continuing
availability of the NOLs is uncertain.
Employment Agreement for Chief Executive Officer. The Company's only
executive officer, Mr. Morton E. Handel, served without compensation from
the third quarter of 1997, when he took office, until the third quarter of
1998. Because of the Company's lack of income or cash flow, and because of
the need to conserve the Company's limited cash resources, Mr. Handel
offered to continue his service as the Company's executive officer through
and beyond the third quarter of 1998 without receiving any regular cash
salary. As more fully set forth in the Registrant's quarterly report on Form
10-QSB for the second quarter of 1998, the Company entered into a five-year
employment agreement with Mr. Handel, effective August 4, 1998, under which
he has received 500,000 shares of the Company's Common Stock (of which
400,000 shares are subject to forfeiture in certain circumstances) (the
"Employment Shares") and certain cash payments if and when the Company
receives cash distributions from the Product Liability Trust. The estimated
fair market value of the Employment Shares as of August 4, 1998, will be an
expense to the Registrant over the four-year vesting term of the employment
agreement.
Changes in Financial Condition. The Registrant's financial condition is
set forth in the Balance Sheets as of September 30, 1998 and December 31,
1997. The changes in financial condition between the two dates resulted
mainly from the exchange of debt owed to a shareholder which is an affiliate
of a director of the Registrant for the Registrant's issuance to that
shareholder of 788,644 shares of the Registrant's Common Stock.
774634.6
13
<PAGE>
Net interest income (expense) in the quarter ended September 30, 1998
("Third Quarter '98") was approximately $9,000, compared to none for the
quarter ended September 30, 1997 ("Third Quarter '97"), because of the
interest earned on the $800,000 bankruptcy distribution received in the
fourth quarter of 1997 and on the $46,000 distribution received in August
1998. Interest expense for the balance of 1998 is expected to be
approximately $6,000. Net comprehensive income (loss) for the Third Quarter
'98 was approximately ($59,000), compared to approximately $500,000 in the
Third Quarter '97, principally because of the entry, in the third quarter of
1997, of a receivable corresponding to the approximately $800,000 received
by the Registrant in the fourth quarter of 1997 from a bankruptcy claim
filed by the Registrant in 1983.
Net interest income (expense) in the nine months ended September 30,
1998 ("First Three Quarters '98") was approximately $22,000, compared to
($8,000) for the nine months ended September 30, 1997 ("First Three Quarters
'97"), because of the interest earned on the $800,000 bankruptcy
distribution received in the fourth quarter of 1997 and on the $46,000
distribution received in August 1998, and because of the elimination of
interest expense by the exchange in March 1998 of debt owed to a shareholder
for shares of common stock. Net comprehensive income (loss) for the First
Three Quarters '98 was approximately ($95,000), compared to approximately
$334,000 in the First Three Quarters '97, principally because of the entry,
in the third quarter of 1997, of a receivable corresponding to the
approximately $800,000 received by the Registrant in the fourth quarter of
1997 from a bankruptcy claim filed by the Registrant in 1983.
Year 2000 Issues. The Registrant does not use a computer to maintain
its financial records at this time. The Registrant therefore (i) considers
itself ready to deal with the transition to the year 2000; (ii) expects to
bear no significant costs associated with addressing the Year 2000 problem;
and (iii) believes that its Year 2000 issues present it with no material
risks. The Registrant cannot be certain that BankBoston, the bank where most
of the Registrant's cash is kept in the form of accounts, will be free from
Year 2000 difficulties. The Registrant believes, however, that those
accounts are safe from any material risk associated with the Year 2000
problem. The Registrant has not considered it necessary to make contingency
plans for dealing with the Year 2000 problem and it has not done so.
774634.6
14
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit 27. Financial Data Schedule for Third Quarter of 1998.
(b) Reports on Form 8-K: None.
774634.6
15
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
Registrant caused this report to signed on its behalf by the undersigned,
thereunto duly authorized.
Ranger Industries, Inc., the Registrant
Date: November 13, 1998 By: /s/ Morton E. Handel
--------------------------------------
Morton E. Handel
President, Chief Executive Officer and
Acting Chief Financial Officer
774634.6
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
Exhibit 27
RANGER INDUSTRIES, INC.
(formerly Coleco Industries, Inc.)
FINANCIAL DATA SCHEDULE
10-QSB for the second quarter 1998
(Unaudited)
-------
<ARTICLE> 5
<LEGEND> This schedule contains summary
financial information extracted
from the Balance Sheet and
Statement of Operations and
Comprehensive Loss and is qualified
in its entirety by reference to
such financial statements.
</LEGEND>
<CIK> 0000021610
<NAME> RANGER INDUSTRIES, INC.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 781,792
<SECURITIES> 0
<RECEIVABLES> 4,642
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 821,852
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 912,855
<CURRENT-LIABILITIES> 20,368
<BONDS> 0
0
0
<COMMON> 52,886
<OTHER-SE> 831,210
<TOTAL-LIABILITY-AND-EQUITY> 912,855
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 108,684
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (21,849)
<INCOME-PRETAX> (84,232)
<INCOME-TAX> 11,099
<INCOME-CONTINUING> (95,331)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (95,331)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
</TABLE>
