<PAGE>   1
                                   FORM 10-QSB


                       SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549-1004



[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934.

      For the quarterly period ended August 30, 1997

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934.

For the transition period from __________ to _________.

Commission File Number: 0-71735

                              ROYAL PRECISION, INC.
                              ---------------------
             (Exact name of registrant as specified in its charter)

           DELAWARE                                             06-1453896
           --------                                             ----------
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)

                             3490 CLUBHOUSE DRIVE
                                  SUITE 102
                            WILSON, WYOMING 83014
                            ---------------------
               (Address of principal executive offices) (Zip code)

                                 (307) 739-1188
                                 --------------
              (Registrant's telephone number, including area code)

                             FM PRECISION GOLF CORP.
                             -----------------------
                                  (Former Name)

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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       No  X
    ---      ---

State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date:

Title of each class                        Outstanding at September 30, 1997
-------------------                        ---------------------------------
Common Stock, par value $.001                  5,596,442 shares

                                      -1-

<PAGE>   2

ITEM 1.

                     ROYAL PRECISION, INC. AND SUBSIDIARIES
                     --------------------------------------

              (formerly, FM Precision Golf Corp. and Subsidiaries)
              ----------------------------------------------------

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                      -------------------------------------

<TABLE>
<CAPTION>
                                                   August 30,        May 31,
                                                      1997            1997
                                                      ----            ----
                                                  (unaudited)
<S>                                               <C>              <C>
                                     ASSETS
                                     ------
CURRENT ASSETS:
  Cash                                            $    35,553      $    27,841
  Accounts receivable, net of allowance
    for doubtful accounts of $541,000
    at August 30, 1997 and $88,000
    at May 31, 1997                                 3,642,595        3,257,932
  Inventories, net                                  3,906,836        3,493,080
  Current portion of net investment
    in lease                                          225,935             --
  Prepaid expenses and other current assets           154,056           63,291
  Deferred income taxes                               222,877          222,877
                                                  -----------      -----------
              Total current assets                  8,187,852        7,065,021
                                                  -----------      -----------
PROPERTY, PLANT AND EQUIPMENT:
  Land                                                 37,500           37,500
  Buildings and improvements                          534,134          363,491
  Machinery and equipment                           4,398,781        2,669,898
                                                  -----------      -----------
                                                    4,970,415        3,070,889
  Less - Accumulated depreciation                    (297,449)        (202,449)
                                                  -----------      -----------
                                                    4,672,966        2,868,440
                                                  -----------      -----------
GOODWILL                                           10,300,696             --
                                                  -----------      -----------
DEFERRED MERGER COSTS                                    --            465,136
                                                  -----------      -----------
NET INVESTMENT IN LEASE, less current portion       2,754,925             --
                                                  -----------      -----------
OTHER ASSETS                                           53,492             --
                                                  -----------      -----------
DEFERRED INCOME TAXES                                  25,799           25,799
                                                  -----------      -----------
                                                  $25,995,730      $10,424,396
                                                  ===========      ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

CURRENT LIABILITIES:
  Current portion of long-term debt
    and capital lease obligations                 $ 3,195,276      $ 2,466,136
  Accounts payable                                  2,305,286        1,258,082
  Accrued expenses                                  2,109,191        1,724,815
  Supply agreement credits                            472,393             --
                                                  -----------      -----------
              Total current liabilities             8,082,146        5,449,033
                                                  -----------      -----------
LONG-TERM DEBT AND CAPITAL LEASE
  OBLIGATIONS, less current portion                 2,954,259        2,616,808
                                                  -----------      -----------
OTHER LIABILITIES                                     188,703             --
                                                  -----------      -----------

STOCKHOLDERS' EQUITY:
  Preferred stock, $.001 par value; 5,000,000
    shares authorized; no shares issued                  --               --
  Common stock, $.001 par value;
    50,000,000 shares authorized;
    5,546,442 and 4,175,394 shares issued
    and outstanding at August 30, 1997 and
    May 31, 1997, respectively                          5,546            4,175
  Additional paid-in capital                       13,805,977        1,420,825
  Retained earnings                                   959,099          933,555
                                                  -----------      -----------
              Total stockholders' equity           14,770,622        2,358,555
                                                  -----------      -----------
                                                  $25,995,730      $10,424,396
                                                  ===========      ===========
</TABLE>

                 The accompanying notes are an integral part of
               these condensed consolidated financial statements.

                                      -2-

<PAGE>   3

                     ROYAL PRECISION, INC. AND SUBSIDIARIES
                     --------------------------------------

              (formerly, FM Precision Golf Corp. and Subsidiaries)
              ----------------------------------------------------

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 -----------------------------------------------

                                   (Unaudited)
                                   -----------

<TABLE>
<CAPTION>
                                            Three Months Ended
                                         -------------------------
                                         August 30,     August 31,
                                            1997           1996
                                            ----           ----
<S>                                      <C>            <C>
NET SALES                                $4,922,334     $4,849,748

COST OF SALES                             3,726,804      3,342,562
                                         ----------     ----------
         Gross profit                     1,195,530      1,507,186

SELLING, GENERAL AND ADMINISTRATIVE
  EXPENSES                                1,025,452        748,485
                                         ----------     ----------

         Operating income                   170,078        758,701

INTEREST EXPENSE                            123,634        119,099
                                         ----------     ----------
         Income before provision for
           income taxes                      46,444        639,602

PROVISION FOR INCOME TAXES                   20,900        273,862
                                         ----------     ----------
         Net income                      $   25,544     $  365,740
                                         ==========     ==========

NET INCOME PER COMMON AND COMMON
  EQUIVALENT SHARE                            $0.01          $0.08
                                              =====          =====

WEIGHTED AVERAGE NUMBER OF COMMON
  AND COMMON EQUIVALENT SHARES
  OUTSTANDING                             4,334,055      4,334,055
                                         ==========     ==========
</TABLE>

                   The accompanying notes are an integral part
              of these condensed consolidated financial statements.

                                      -3-

<PAGE>   4

                     ROYAL PRECISION, INC. AND SUBSIDIARIES
                     --------------------------------------

              (formerly, FM Precision Golf Corp. and Subsidiaries)
              ----------------------------------------------------

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 -----------------------------------------------

                                   (Unaudited)
                                   -----------

<TABLE>
<CAPTION>
                                                       Three Months Ended
                                                       ------------------
                                                   August 30,       August 31,
                                                      1997             1996
                                                      ----             ----
<S>                                               <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                      $    25,544      $   365,740
  Adjustments to reconcile net income
    to net cash provided by operating
    activities -
      Depreciation                                     95,000           50,333
      Changes in operating assets and
        liabilities -
          Accounts receivable                         908,334        1,123,360
          Inventories                                 296,471         (148,763)
          Prepaid expenses and other
            current assets                            (30,739)        (324,969)
          Accounts payable and accrued
            expenses                                 (589,711)         765,684
                                                  -----------      -----------
                  Net cash provided by
                    operating activities              704,899        1,831,385
                                                  -----------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Cash acquired from Royal Grip, Inc.                  17,568             --
  Purchases of equipment, net                        (230,005)        (232,789)
  Merger costs                                       (385,493)            --
  Acquisition of net assets of
    predecessor business                                 --         (6,824,206)
                                                  -----------      -----------
                  Net cash used in investing
                    activities                       (597,930)      (7,056,995)
                                                  -----------      -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from sale of common stock                     --          1,000,000
  Proceeds from long-term debt                           --          3,750,000
  Borrowings under line-of-credit, net                125,253          686,198
  Repayments of long-term debt and
    capital lease obligations                        (224,510)        (125,000)
                                                  -----------      -----------
                  Net cash (used in) provided
                    by financing activities           (99,257)       5,311,198
                                                  -----------      -----------

INCREASE IN CASH                                        7,712           85,588

CASH, beginning of period                              27,841             --
                                                  -----------      -----------
CASH, end of period                               $    35,553      $    85,588
                                                  ===========      ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
  INFORMATION:
    Cash paid during the period for -
      Interest                                    $   133,964      $    88,163
                                                  ===========      ===========
      Income taxes                                $    60,000      $    48,750
                                                  ===========      ===========
    Net cash transactions -
      Accrued Merger and registration
        costs                                     $   520,632      $      --
                                                  ===========      ===========
      Issuance of common stock and options
        and warrants to purchase common
        stock for acquisition of RG               $12,994,518      $      --
                                                  ===========      ===========
</TABLE>

                     The accompanying notes are an integral
           part of these condensed consolidated financial statements.

                                      -4-

<PAGE>   5

                     ROYAL PRECISION, INC. AND SUBSIDIARIES
                     --------------------------------------

              (formerly, FM Precision Golf Corp. and Subsidiaries)
              ----------------------------------------------------

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              ----------------------------------------------------

                                   (Unaudited)
                                   -----------


1.     Operations and Significant Accounting Policies:
       -----------------------------------------------

       Basis of presentation -
       -----------------------

       The condensed consolidated financial statements of Royal Precision, Inc.
       and subsidiaries (collectively, RPI or the Company) presented herein have
       been prepared pursuant to the rules of the Securities and Exchange
       Commission for quarterly reports on Form 10-QSB and do not include all of
       the information and note disclosures required by generally accepted
       accounting principles. These condensed consolidated financial statements
       should be read in conjunction with the Company's consolidated financial
       statements and notes thereto for the year ended May 31, 1997 included in
       the Company's Form S-4 Registration Statement dated August 15, 1997
       (Registration Statement No. 333-28841). In the opinion of management, the
       accompanying unaudited condensed consolidated financial statements
       include all adjustments, consisting of only normal recurring adjustments,
       necessary to present fairly the consolidated financial position, results
       of operations and cash flows of the Company. Quarterly operating results
       are not necessarily indicative of the results which would be expected for
       the full year.

       Principles of consolidation -
       -----------------------------

       The accompanying consolidated financial statements include Royal
       Precision, Inc. (formerly FM Precision Golf Corp.) and its three
       wholly-owned subsidiaries, FM Precision Golf Manufacturing Corp., FM
       Precision Golf Sales Corp. and Royal Grip, Inc. (formerly FMPSUB, Inc.).
       No results of operations for Royal Grip, Inc. are included in the
       accompanying condensed consolidated statements of operations as RG had no
       material operating results since its acquisition on August 29, 1997 (see
       Note 2). All significant intercompany balances and transactions have been
       eliminated in consolidation.

       Reporting periods -
       -------------------

       The Company's first three fiscal quarters end on a Saturday. The
       Company's year end is May 31.

                                       -5-

<PAGE>   6

2.     Business Combination:
       ---------------------

       On May 14, 1997, RPI entered into an Agreement and Plan of Merger with
       Royal Grip, Inc. Under the terms of the Merger agreement, effective
       August 29, 1997, FMPSUB, Inc. (a wholly-owned subsidiary of RPI created
       for such purpose) merged with and into Royal Grip, Inc. (the Merger).
       Royal Grip, Inc. (RG) was the surviving corporation and became a
       wholly-owned subsidiary of RPI.

       In the Merger, each outstanding share of RG common stock was converted
       into one-half share of RPI common stock. No fractional shares of RPI were
       issued in the Merger. In lieu of any such fractional shares, each holder
       of fractional shares of RG common stock will be paid cash in an amount
       equal to such fractional interest multiplied by the average of the high
       and low trading prices per share of RG common stock for the five trading
       days ended immediately prior to the Merger. As a result of the Merger,
       the pre-Merger stockholders and option and warrant holders of RG own or
       have the right to acquire an aggregate of 30% of RPI's common stock on a
       fully diluted basis.

       The aggregate purchase price of $13,766,106 represents the sum of (i) the
       fair value of the 1,371,058 shares of RPI common stock issued in exchange
       for 2,742,116 of the shares of RG common stock outstanding as of the
       Merger date at $3.925 per share (the average closing bid price of RG
       common stock (pre-conversion) for the period from two days before until
       the two days after the announcement of the revised Merger terms) of
       $10,762,805, (ii) cash of $122 to be paid to RG stockholders in lieu of
       31 fractional shares, as discussed above, (iii) the fair value of the
       options and warrants to purchase 982,250 shares of RG common stock
       outstanding as of the Merger date (which were converted into options and
       warrants to purchase 491,125 shares of RPI common stock in connection
       with the Merger) of $2,231,713, which amount was determined using the
       Black Scholes Valuation Model, and (iv) RPI Merger expenses of $771,466
       (RG's Merger costs of approximately $637,000 were expensed and RG's
       registration statement costs of approximately $143,000 were charged to
       stockholders' equity by RG prior to the acquisition). RPI also incurred
       expenses of $607,995 associated with the Form S-4 Registration Statement
       which were charged to stockholders' equity. The Merger was accounted for
       as a purchase and the purchase price was allocated based on the fair
       market value of the assets acquired and liabilities assumed as follows:

                 Cash                                            $    17,568
                 Accounts receivable                               1,292,997
                 Inventories                                         710,227
                 Net investment in lease                           2,980,860
                 Prepaid expenses and other current assets            68,226
                 Property and equipment                            1,669,521
                 Goodwill                                         10,300,696
                 Accounts payable and accrued expenses            (1,500,537)
                 Supply agreement credits                           (472,393)
                 Debt and capital lease obligations               (1,165,848)
                 Other, net                                         (135,211)
                                                                 -----------
                                                                 $13,766,106
                                                                 ===========

                                      -6-

<PAGE>   7

       The estimated fair values are subject to further refinement; however, RPI
       does not expect that the final allocation of the Merger purchase price
       will differ materially from the preliminary allocation included above.

       As of December 31, 1996, RG had Federal and state net operating loss
       (NOL) carry-forwards of approximately $4.3 million. Due to uncertainty of
       realization, a valuation allowance has been recorded to fully offset the
       value of the NOL carryforwards. If such carryforwards are used in the
       future, the related benefit will be recorded as a reduction in goodwill.
       RPI will amortize goodwill related to the RG acquisition over 20 years
       and will evaluate the asset for impairment by reviewing the estimated
       future cash flows of RG on a quarterly basis.

       In connection with the Merger, the Company amended its Certificate of
       Incorporation to increase the number of authorized shares of common stock
       from 3,000 to 50,000,000, reduce the par value of the common stock from
       $.01 to $.001 per share, split each issued and outstanding share of
       common stock into 4,175.394 shares of common stock and authorize
       5,000,000 shares of $.001 par value preferred stock. In connection with
       the stock split, RPI paid $84 in lieu of issuing 10.46 fractional shares
       of RPI common stock. The accompanying condensed consolidated financial
       statements have been restated to reflect this share split and change in
       par value and authorized shares.

       In connection with the Merger, RG issued warrants to purchase 100,000
       shares of RG common stock (pre-conversion) to an investment banker. The
       warrants were exercisable at a price of $.01 per share.
       Such warrants were exercised in September 1997 for $1,000.


3.     Inventories:
       ------------

       Inventories as of August 30, 1997 and May 31, 1997 consisted of the
       following:

                                       August 30, 1997         May 31, 1997
                                       ---------------         ------------
       Raw materials                      $1,468,227            $1,137,189
       Work-in-process                     1,113,799               964,904
       Finished goods                      1,041,089             1,107,266
       LIFO Reserve                          283,721               283,721
                                          ----------            ----------
                                          $3,906,836            $3,493,080
                                          ==========            ==========

                                      -7-

<PAGE>   8

4.     Supply Agreement Credits:
       -------------------------

       In December 1996, RG outsourced all of its production of non-cord grips
       to Acushnet Rubber Company (Acushnet). During the first quarter of 1997,
       Acushnet experienced startup delays in the production of grips. In light
       of these difficulties, RG and Acushnet renegotiated their agreement. In
       connection with this renegotiation, and subsequent production shortfalls,
       Acushnet agreed to provide RG with aggregate credits of $472,393 for
       future purchases of grips, to be applied against current accounts payable
       due to Acushnet. Additional credits may also be earned in the event
       Acushnet fails to meet future production requirements. These credits may
       be reduced, during calendar 1997 only, depending upon Acushnet's
       production beyond levels specified in the amendment to the Manufacturing
       and Supply Agreement, but only to the extent that the Company orders
       grips above such specified levels. The credits may also be reduced as a
       result of the cancellation of stock options granted to Acushnet. Because
       of the contingent nature of these credits, this amount is reflected as a
       liability (supply agreement credits) and a reduction in accounts payable
       to Acushnet. RPI intends to recognize these credits in 1997 as a
       reduction in cost of sales when it becomes probable and estimable that
       Acushnet will not be able to earn back the credits by either increasing
       its production or by virtue of a reduction in RG's orders below levels
       specified in the amendment. As of August 30, 1997, RPI has not recorded
       any of the credits as a reduction of cost of sales as Acushnet can still
       earn back the credits and such amounts, if earned back, are payable in
       cash.


5.     Long-Term Debt:
       ---------------

       FM Precision Golf Manufacturing Corp. (FMP) has a Credit Facility which
       includes a revolving line-of-credit and term loan. As of August 30, 1997,
       FMP had $1.6 million outstanding on its revolving line-of-credit.
       Borrowings on the Credit Facility bear interest at the prime rate plus
       1.5% (Term Loan) and at the prime rate plus 1.25% (Revolver). The Term
       Loan is due in monthly principal installments of $69,712 commencing March
       1997 through May 31, 1999 plus an additional annual principal payment
       each August in an amount equal to 30% of excess cash flow, as defined,
       for FMP's preceding fiscal year. The additional principal payment for
       fiscal 1997 was waived by the lender. The Revolver and Term Loan mature
       on May 31, 1999; however, the lender may extend the maturity to May 31,
       2001. If the lender does not extend the maturity of the Credit Facility,
       the remaining principal outstanding under the Term Loan is due and
       payable May 31, 1999. The Credit Facility matures on May 31, 1999. The
       amount available for borrowings under the revolving credit portion of
       FMP's Credit Facility is determined pursuant to a formula which is based
       upon the levels of eligible accounts receivable and inventory subject to
       a maximum amount of $7.5 million, less the amount outstanding on the term
       portion of the Credit Facility. Based on eligible receivables and
       inventory

                                      -8-

<PAGE>   9

       at August 30, 1997, FMP had $1.8 million available for additional
       borrowings at such date. As of September 30, 1997, FMP was in the process
       of renegotiating certain terms of its Credit Facility with its lender.
       The proposed revisions include revised covenants based on RPI's new
       projections as a result of the Merger, a $1 million increase in the
       amount available for borrowing, a 1/4% reduction in the interest rate, an
       extended maturity date and the elimination of certain guarantees.

       In February 1997, RG entered into a new line of credit facility of $1.75
       million and term loan of $700,000 with a commercial bank. These credit
       arrangements mature on February 10, 2000 and contain net worth
       requirements, prohibit dividend payments and limit capital expenditures.
       At March 31, 1997, RG was not in compliance with its quarterly net income
       (loss), debt service, and net worth debt covenants and anticipated not
       meeting many of its quarterly and monthly covenants during 1997. In April
       1997, RG obtained an amended bank agreement which waived the existing net
       income (loss), debt service, and net worth covenant defaults and amended
       the debt agreement whereby the net income (loss) limits have been
       modified to a loss of no more than $1 million for the quarter ending
       March 31, 1997 and a cumulative loss of no more than $1.6 million
       (excluding the impact of the warrants issued to the investment banker in
       connection with the Merger) for the quarter ending June 30, 1997, and for
       each month thereafter in 1997. The agreement amended the net worth
       covenants to correlate with the net loss covenants above. The quarterly
       debt service and monthly loss limit covenants were waived by the bank for
       1997. In addition, the interest rate was amended to the bank's prime rate
       plus 3.0 percent effective April 1, 1997, subject to change based on the
       operating results of RG. RG was in compliance with the amended debt
       covenants at August 30, 1997. At August 30, 1997, RPI believes that it is
       probable that RG will comply with the debt covenants at the measurement
       dates over the next twelve months; therefore, the long-term portion of
       RG's term loan is classified as long-term in the accompanying condensed
       consolidated balance sheet. As of August 30, 1997, RG had $617,000
       available for additional borrowings.

                                      -9-

<PAGE>   10

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

       Forwarding Looking Statements -

       The Private Securities Litigation Reform Act of 1995 provides a "safe
       harbor" for forward looking statements. This Form 10-QSB, any other Form
       10-QSB, Form 10-KSB, or Form 8-K, or any other written or oral
       statements made by or on behalf of RPI may include forward looking
       statements which reflect RPI's current views with respect to future
       events and financial performance. These forward looking statements are
       subject to certain uncertainties and other factors that could cause
       actual results to differ materially from such statements. These
       uncertainties and other factors include, but are not limited to,
       uncertainties relating to economic conditions, customer plans and
       commitments, RPI's cost of raw materials, the competitive environment in
       which RPI operates, and changes in the financial markets relating to
       RPI's capital structure and cost of capital. Statements in this Form     
       10-QSB, including the Notes to the Condensed Consolidated Financial
       Statements and this "Management's Discussion and Analysis of Financial
       Condition and Results of Operations", describe factors among others,
       that could contribute to or cause such differences. Additional factors
       that could cause actual results to differ materially from those
       expressed in such forward looking statements are detailed in RPI's Form
       S-4 Registration Statement dated August 15, 1997. Please refer to "Risk
       Factors" therein.  The words "believe," "expect," "anticipate,"
       "project," and similar expressions identify forward looking statements,
       which speak only as of the date the statement was made. RPI undertakes
       no obligation to publicly update or revise any forward looking
       statements, whether as a result of new information, future events, or
       otherwise. 

       Overview -

       Royal Precision, Inc. (RPI or the Company) has three wholly-owned
       subsidiaries which are FM Precision Golf Manufacturing Corp. (FMP), FM
       Precision Golf Sales Corp. and Royal Grip, Inc. (formerly known as
       FMPSUB, Inc.) (RG). RPI acquired RG on August 29, 1997 by means of a
       merger whereby FMPSUB, Inc. merged with and into RG with RG being the
       surviving corporation. See Note 2 of Notes to Condensed Consolidated
       Financial Statements.

       FMP is a manufacturer and distributor of golf shafts which are sold to
       original equipment manufacturers (OEMs) and to distributors and
       retailers for use in the replacement market. Approximately 67% and 57%
       of FMP's sales for the three months ended August 30, 1997 and August 31, 
       1996 were to OEMs. Approximately 15% and 9% of FMP's sales for the three
       months ended August 30, 1997 and August 31, 1996, respectively, were
       exported to foreign markets in Japan, Canada and the United Kingdom.

                                      -10-

<PAGE>   11

       RG's results of operations since the Merger on August 29, 1997 were not
       material, therefore, no results of operations for RG have been included
       in the accompanying condensed consolidated statements of operations. RG
       designs and manufactures golf club grips and athletic headwear. RG's
       products are sold primarily throughout the United States, Japan and the
       United Kingdom. In December 1996, RG outsourced the manufacturing of its
       non-cord grips (see Note 4 of Notes to Condensed Consolidated Financial
       Statements).

       Three Months Ended August 30, 1997 Compared to the Three Months Ended
       August 31, 1996.

       Net Sales. Net sales for the three months ended August 30, 1997 were $4.9
       million as compared to $4.8 million for the three months ended August 31,
       1996. Sales of the Rifle shaft decreased by $.3 million for the three
       months ended August 30, 1997 to $2.4 million compared to sales in the
       three months ended August 31, 1996 of $2.7 million. This decrease was
       offset by an increase of $.4 million in sales of other steel shafts for
       the three months ended August 30, 1997, compared to the three months
       ended August 31, 1996.

       Cost of Goods Sold. Cost of goods sold was $3.7 million, or 75.7% of
       sales, for the three months ended August 30, 1997 as compared to $3.3
       million, or 68.9% of sales, for the three months ended August 31, 1996.  
       The percentage increase is the result of a change in product mix from
       higher margin products to lower margin products. The average cost per
       unit decreased by approximately 5% which was offset by a reduction in
       the average selling price of 13%.

       Selling, General and Administrative Expenses. Selling, general and
       administrative expenses were $1.0 million, or 20.8% of sales, for the
       three months ended August 30, 1997 as compared to $.7 million, or 15.4%
       of sales, for the three months ended August 31, 1996. This increase is
       due to an additional $.3 million of management and professional fees in
       the 1997 period.

       Interest Expense. Interest expense was $124,000 for the three months
       ended August 30, 1997 compared to $119,000 for the three months ended
       August 31, 1996.

       Income taxes. The provision for income taxes for the three months ended
       August 30, 1997 was $21,000, or 45% of pre-tax income, compared to
       $274,000, or 43% of pre-tax income for the three months ended August 31,
       1996. The increase in the expected rate for the 1997 period is due to the
       effect of non-deductible goodwill resulting from the Merger with RG.

       Liquidity and capital resources. At August 30, 1997, RPI had working
       capital of $106,000 and a current ratio of 1.0 to 1 as compared to
       working capital of $1.6 million and a current ratio of 1.3 to 1 at May
       31, 1997. The reduction is primarily due to lower FMP accounts receivable
       due to the seasonality of the business and accrued transaction fees
       related to the Merger.

                                      -11-

<PAGE>   12

       FMP has a Credit Facility which includes a revolving line-of-credit and
       term loan. As of August 30, 1997, FMP had $1.6 million outstanding on its
       revolving line-of-credit. Borrowings on the Credit Facility bear interest
       at the prime rate plus 1.5% (Term Loan) and at the prime rate plus 1.25%
       (Revolver). The Term Loan is due in monthly principal installments of
       $69,712 commencing March 1997 through May 31, 1999 plus an additional
       annual principal payment each August in an amount equal to 30% of excess
       cash flow, as defined, for FMP's preceding fiscal year. The additional
       principal payment for fiscal 1997 was waived by the lender. The Revolver
       and Term Loan mature on May 31, 1999; however, the lender may extend the
       maturity to May 31, 2001. If the lender does not extend the maturity of
       the Credit Facility, the remaining principal outstanding under the Term
       Loan is due and payable May 31, 1999. The Credit Facility matures on May
       31, 1999. The amount available for borrowings under the revolving credit
       portion of FMP's Credit Facility is determined pursuant to a formula
       which is based upon the levels of eligible accounts receivable and
       inventory subject to a maximum amount of $7.5 million, less the amount
       outstanding on the term portion of the Credit Facility. Based on eligible
       receivables and inventory at August 30, 1997, FMP had $1.8 million
       available for additional borrowings at such date. As of September 30,
       1997, FMP is in the process of renegotiating certain terms of its Credit
       Facility with its lender. The proposed revisions include revised
       covenants based on RPI's new projections as a result of the Merger, a $1
       million increase in the amount available for borrowing, a 1/4% reduction
       in the interest rate, an extended maturity date and the elimination of
       certain guarantees.

       In February 1997, RG entered into a new line of credit facility of $1.75
       million and term loan of $700,000 with a commercial bank. These credit
       arrangements mature on February 10, 2000 and contain net worth
       requirements, prohibit dividend payments and limit capital expenditures.
       At March 31, 1997, RG was not in compliance with its quarterly net income
       (loss), debt service, and net worth debt covenants and anticipated not
       meeting many of its quarterly and monthly covenants during 1997. In April
       1997, RG obtained an amended bank agreement which waived the existing net
       income (loss), debt service, and net worth covenant defaults and amended
       the debt agreement whereby the net income (loss) limits have been
       modified to a loss of no more than $1 million for the quarter ending
       March 31, 1997 and a cumulative loss of no more than $1.6 million
       (excluding the impact of the warrants issued to the investment banker in
       connection with the Merger) for the quarter ending June 30, 1997, and for
       each month thereafter in 1997. The agreement amended the net worth
       covenants to correlate with the net loss covenants above. The quarterly
       debt service and monthly loss limit covenants were waived by the bank for
       1997. In addition, the interest rate was amended to the bank's prime rate
       plus 3.0 percent effective April 1, 1997, subject to change based on the
       operating results of RG. RG was in compliance with the amended debt
       covenants at August 30, 1997. At August 30, 1997, RPI believes that it is
       probable that RG will comply with the debt covenants at the measurement
       dates over the next twelve months; therefore, the long-term portion of
       RG's term loan is classified as long-term in the accompanying condensed
       consolidated balance sheet. As of

                                      -12-

<PAGE>   13

       August 30, 1997, RG had $617,000 available for additional borrowings.

       RPI believes that the funds anticipated to be generated from operations
       and the availability under FMP's and RG's credit facilities will be
       sufficient to satisfy RPI's working capital and capital expenditure
       requirements for at least the next year.

       During the three months ended August 30, 1997, net cash provided by
       operating activities was $705,000 which primarily resulted from
       reductions in FMP accounts receivable, inventories, accounts payable and
       accrued expenses (prior to the non-cash increase in accounts payable and
       accrued expenses of $520,000 related to accrued Merger costs).

       FMP used $598,000 in investing activities during the three months ended
       August 30, 1997, primarily due to $230,000 used to purchase additional
       property, plant and equipment during such period and Merger costs of
       approximately $386,000. RPI estimates that capital expenditures for the
       year ended May 31, 1998 will be approximately $1.6 million for FMP and
       $500,000 for the period from acquisition to May 31, 1998 for RG.

       Net cash used by financing activities was $99,000 primarily due to
       $125,000 of borrowings on FMP's revolving line-of-credit offset by
       repayments on long-term debt and capital lease obligations of $225,000.

                                      -13-

<PAGE>   14



PART II.   OTHER INFORMATION

Item 1.  Legal Proceedings.
         None

Item 2.  Changes in Securities.

         On August 29, 1997, RPI issued 50,000 shares of RPI Common Stock, par
         value $.001 ("Shares"), to EVEREN Securities, Inc. ("EVEREN") upon
         EVEREN's exercise of warrants to purchase 50,000 Shares at $.02 per
         share. The issuance of the Shares was exempt from registration pursuant
         to Section 4(2) of the Securities Act of 1933.

         EVEREN is a registered Broker/Dealer and acted as financial adviser to
         RG with regard to RG's merger with a wholly owned subsidiary of RPI
         ("Merger") (See Note 2 Notes to Condensed Consolidated Financial
         Statements for a description of the Merger). EVEREN originally obtained
         warrants to purchase 100,000 shares of RG Common Stock at $.01 per
         share as partial consideration for EVEREN's preparation of a fairness
         opinion concerning the Merger pursuant to an engagement letter between
         EVEREN and RG dated April 29, 1997. Upon the completion of the Merger,
         EVEREN's warrants to purchase 100,000 shares of RG Common Stock at $.01
         per share were converted into warrants to purchase 50,000 Shares at
         $.02 per share.

Item 3.  Defaults Upon Senior Securities.
         None

Item 4.  Submission of Matters to a Vote of Security Holders.
         None

Item 5.  Other Information.
         None

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

6(a)     Exhibits

         (2) Plan of Acquisition, Reorganization, Arrangements,
         Liquidation or Succession

         Exhibit 2.1

         Agreement and Plan of Merger dated as of May 14, 1997 among Royal Grip,
         Inc., FM Precision Golf Corp. and FMPSUB, Inc. (incorporated by
         reference to Annex I to the Company's Registration Statement on Form
         S-4 filed on June 9, 1997, as amended by Amendment Number 1 filed on
         July 25, 1997, Amendment Number 2 filed on August 15, 1997 and
         Amendment Number 3 filed on August 18, 1997 (the Company's Form S-4);
         No. 333-28841).

         Exhibit 2.2

         Consulting Agreement dated as of May 14, 1997 between FM Precision Golf
         Corp. and Danny Edwards (incorporated by reference to Exhibit 2.2 to
         the Company's Form S-4; No. 333-28841).

         Exhibit 2.3

         Registration Rights Agreement dated as of May 14, 1997 among Danny
         Edwards, Drew M. Brown, DMB Property Ventures Limited Partnership, Mark
         N. Sklar, Bennett Dorrance, Trustee of the Bennett Dorrance Trust,
         Christopher A. Johnston, RPJ/JAJ Partners, Ltd., David E. Johnston,
         Kenneth J. Warren, Berenson, Minella & Company, L.P. and FM Precision
         Golf Corp.

                                      -14-

<PAGE>   15

         (incorporated by reference to Exhibit 2.3 to the Company's Form S-4;
         No. 333-28841).

         Exhibit 2.4

         Stockholder Agreement dated as of May 14, 1997 among Danny Edwards,
         Drew M. Brown, DMB Property Ventures Limited Partnership, Mark N.
         Sklar, Bennett Dorrance, Trustee of the Bennett Dorrance Trust,
         Christopher A. Johnston, RPJ/JAJ Partners, Ltd., David E. Johnston,
         Kenneth J. Warren, Berenson Minella & Company, L.P. and FM Precision
         Golf Corp. (incorporated by reference to Exhibit 2.4 to the Company's
         Form S-4; No. 333-28841).

         Exhibit 2.5

         Voting Agreement dated as of May 14, 1997 among Danny Edwards, Drew M.
         Brown, Mark N. Sklar, Bennett Dorrance, Trustee of the Bennett Dorrance
         Trust, DMB Property Ventures Limited Partnership and FM Precision Golf
         Corp. (incorporated by reference to Exhibit 2.5 to the Company's Form
         S-4; No. 333-28841).

         (3) Certificate of Incorporation and Bylaws

         Exhibit 3.1

         Amended and Restated Certificate of Incorporation of FM Precision Golf
         Corp. (incorporated by reference to Annex IV to the Company's Form S-4;
         No. 333-28841).

         Exhibit 3.2

         Bylaws of Royal Precision, Inc. (incorporated by reference to Exhibit
         3.2 to the Company's Form S-4; No. 333-28841).

         (4) Instruments Defining the Rights of Security Holders

         Exhibit 4.1

         See Articles FOUR, FIVE and SEVEN of the Amended and Restated
         Certificate of Incorporation of FM Precision Golf Corp. (incorporated
         by reference to Exhibit 3.1 to the Company's Form S-4; No. 333-28841).

         Exhibit 4.2

         See Article I, Sections 2.1 and 2.2 of Article II and Section 7.3 of
         Article VII of the Bylaws of Royal Precision, Inc. (incorporated by
         reference to Exhibit 3.2 to the Company's Form S-4; No. 333-28841).

         Exhibit 27

         Financial Data Schedule (submitted electronically for SEC information
         only).

                                      -15-
<PAGE>   16

6(b)     Reports on Form 8-K

         A current report on Form 8-K dated August 29, 1997 was filed by the
         Company on September 11, 1997 to report the Merger with Royal Grip,
         Inc.

                                      -16-
<PAGE>   17



SIGNATURE

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



                                     ------------------------------------------
                                                ROYAL PRECISION, INC.
                                                    (Registrant)



Dated:  October 13, 1997             By: /s/  Allen W. Ritchie
                                         -------------------------------------
                                         Allen W. Ritchie,
                                         President and Chief Executive Officer
                                         (principal executive officer)

                                     By: /s/Christopher A. Johnston
                                         -------------------------------------
                                         Christopher A. Johnston
                                         Chairman of the Board and Treasurer
                                         (principal financial and accounting
                                            officer)

                                      -17-
<PAGE>   18

                                Exhibit Index
                                                                       Page No.

         Exhibits
  
         (2) Plan of Acquisition, Reorganization, Arrangements,
         Liquidation or Succession

         Exhibit 2.1

         Agreement and Plan of Merger dated as of May 14, 1997
         among Royal Grip, Inc., FM Precision Golf Corp. and FMPSUB,
         Inc. (incorporated by reference to Annex I to the Company's
         Registration Statement on Form S-4 filed on June 9, 1997, as      *
         amended by Amendment Number 1 filed on July 25, 1997,
         Amendment Number 2 filed on August 15, 1997 and Amendment
         Number 3 filed on August 18, 1997 (the Company's Form S-4);
         No. 333-28841).

         Exhibit 2.2

         Consulting Agreement dated as of May 14, 1997 between
         FM Precision Golf Corp. and Danny Edwards (incorporated by        *
         reference to Exhibit 2.2 to the Company's Form S-4; No.
         333-28841).

         Exhibit 2.3

         Registration Rights Agreement dated as of May 14, 1997
         among Danny Edwards, Drew M. Brown, DMB Property Ventures
         Limited Partnership, Mark N. Sklar, Bennett Dorrance,             *
         Trustee of the Bennett Dorrance Trust, Christopher A.
         Johnston, RPJ/JAJ Partners, Ltd., David E. Johnston, Kenneth
         J. Warren, Berenson, Minella & Company, L.P. and FM
         Precision Golf Corp.

                                      -18-
<PAGE>   19

         (incorporated by reference to Exhibit 2.3 to the
         Company's Form S-4; No. 333-28841).

         Exhibit 2.4

         Stockholder Agreement dated as of May 14, 1997 among
         Danny Edwards, Drew M. Brown, DMB Property Ventures Limited
         Partnership, Mark N. Sklar, Bennett Dorrance, Trustee of the
         Bennett Dorrance Trust, Christopher A. Johnston, RPJ/JAJ           *
         Partners, Ltd., David E. Johnston, Kenneth J. Warren,
         Berenson Minella & Company, L.P. and FM Precision Golf Corp.
         (incorporated by reference to Exhibit 2.4 to the Company's
         Form S-4; No. 333-28841).

         Exhibit 2.5

         Voting Agreement dated as of May 14, 1997 among Danny
         Edwards, Drew M. Brown, Mark N. Sklar, Bennett Dorrance,
         Trustee of the Bennett Dorrance Trust, DMB Property Ventures       *
         Limited Partnership and FM Precision Golf Corp.
         (incorporated by reference to Exhibit 2.5 to the Company's
         Form S-4; No. 333-28841).

         (3) Certificate of Incorporation and Bylaws

         Exhibit 3.1

         Amended and Restated Certificate of Incorporation of FM
         Precision Golf Corp. (incorporated by reference to Annex IV        *
         to the Company's Form S-4; No. 333-28841).

         Exhibit 3.2

         Bylaws of Royal Precision, Inc. (incorporated by
         reference to Exhibit 3.2 to the Company's Form S-4; No.            *
         333-28841).

         (4) Instruments Defining the Rights of Security Holders

         Exhibit 4.1

         See Articles FOUR, FIVE and SEVEN of the Amended and
         Restated Certificate of Incorporation of FM Precision Golf         *
         Corp. (incorporated by reference to Exhibit 3.1 to the
         Company's Form S-4; No. 333-28841).

         Exhibit 4.2

         See Article I, Sections 2.1 and 2.2 of Article II and
         Section 7.3 of Article VII of the Bylaws of Royal Precision,       *
         Inc. (incorporated by reference to Exhibit 3.2 to the
         Company's Form S-4; No. 333-28841).

         Exhibit 27

         Financial Data Schedule (submitted electronically for SEC
         information only).

    * Incorporated by reference
                          
                                     -19-