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

                                    FORM 10-Q

(Mark one)

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

    For the quarterly period ended February 29, 2000 or

[ ] 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: 0-22889


                              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.)


15170 North Hayden Road, Suite 1, Scottsdale, AZ                   85260
   (Address of Principal Executive Offices)                      (Zip code)


                                 (480) 627-0200
              (Registrant's Telephone Number, Including Area Code)


                 (Former Name, Former Address and Former Fiscal
                       Year if Changed Since Last Report)

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  issuer's  classes of
common stock, as of the latest practicable date:

    Title of each class                             Outstanding at April 7, 2000
    -------------------                             ----------------------------
Common Stock, par value $0.001                            5,676,201 Shares
<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                     ROYAL PRECISION, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                             (dollars in thousands)
<TABLE>
<CAPTION>
                                                                                FEBRUARY 29,    MAY 31,
                                                                                   2000          1999
                                                                                 --------      --------
                                     ASSETS                                     (UNAUDITED)
<S>                                                                              <C>           <C>
CURRENT ASSETS:
 Cash                                                                            $     21      $    184
 Accounts receivable, net of allowance for doubtful accounts of $217
  at February 29, 2000 and $433 at May 31, 1999, respectively                       3,986         4,617
 Inventories                                                                        6,041         4,514
 Other current assets                                                                 103           783
 Deferred income taxes                                                                647           647
                                                                                 --------      --------
     Total current assets                                                          10,798        10,745
                                                                                 --------      --------
PROPERTY, PLANT AND EQUIPMENT:
 Land                                                                                 123           123
 Furniture, fixtures and office equipment                                             500           499
 Buildings and improvements                                                           840           670
 Machinery and equipment                                                            4,246         4,144
 Equipment held for sale                                                              500            --
 Construction in progress                                                             524           402
                                                                                 --------      --------
                                                                                    6,733         5,838
 Less - Accumulated depreciation                                                   (1,165)         (929)
                                                                                 --------      --------
                                                                                    5,568         4,909
                                                                                 --------      --------

GOODWILL, net                                                                       8,493         8,857
                                                                                 --------      --------
DEFERRED INCOME TAXES                                                                  70            70
                                                                                 --------      --------
OTHER ASSETS                                                                           77            29
                                                                                 --------      --------
     Total assets                                                                $ 25,006      $ 24,610
                                                                                 ========      ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
 Current portion of long-term debt and capital lease obligations                 $    906      $  1,203
 Accounts payable                                                                   1,792         1,839
 Accrued salaries and benefits                                                        957           595
 Accrued pension liability                                                            224           251
 Other accrued expenses                                                             1,013         1,079
                                                                                 --------      --------
     Total current liabilities                                                      4,892         4,967

LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS,
  net of current portion                                                            6,260         6,191
                                                                                 --------      --------
     Total liabilities                                                             11,152        11,158
                                                                                 --------      --------
</TABLE>
                                      -2-
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                              <C>           <C>
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value; 1,000,000 shares authorized
 (reduced from 5,000,000 shares on October 19, 1999); no shares issued                 --            --
Common stock, $0.001 par value; 10,000,000 shares authorized (reduced
 from 50,000,000 shares on October 19, 1999); 5,676,201 and 5,667,375 shares
 issued and outstanding at February 29, 2000 and May 31, 1999, respectively             6             6
Additional paid-in capital                                                         13,906        13,897
Accumulated deficit                                                                   (11)         (404)
Accumulated other comprehensive loss                                                  (47)          (47)
                                                                                 --------      --------
    Total stockholders' equity                                                     13,854        13,452
                                                                                 --------      --------
    Total liabilities and stockholders' equity                                   $ 25,006      $ 24,610
                                                                                 ========      ========
</TABLE>
                 The accompanying notes are an integral part of
               these condensed consolidated financial statements.

                                      -3-
<PAGE>
                     ROYAL PRECISION, INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                (dollars in thousands, except per share amounts)

<TABLE>
<CAPTION>
                                                             THREE MONTHS ENDED             NINE MONTHS ENDED
                                                        --------------------------     ---------------------------
                                                        FEBRUARY 29,   FEBRUARY 28,    FEBRUARY 29,   FEBRUARY 28,
                                                            2000          1999             2000          1999
                                                        -----------    -----------     -----------    -----------
<S>                                                     <C>            <C>             <C>            <C>
NET SALES:
 Golf club shafts                                       $     6,066    $     4,178     $    16,938    $    12,220
 Golf club grips                                                949            940           3,013          2,787
                                                        -----------    -----------     -----------    -----------
                                                              7,015          5,118          19,951         15,007
                                                        -----------    -----------     -----------    -----------
COST OF SALES:
 Golf club shafts                                             4,337          3,075          11,587          8,295
 Golf club grips                                                691            589           2,106          1,566
                                                        -----------    -----------     -----------    -----------
                                                              5,028          3,664          13,693          9,861
                                                        -----------    -----------     -----------    -----------

     Gross profit                                             1,987          1,454           6,258          5,146

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                  1,695          1,486           4,819          4,610

MERGER RELATED EXPENSES                                          --            503              --            503

AMORTIZATION OF GOODWILL                                        121            129             364            387
                                                        -----------    -----------     -----------    -----------

     Operating income (loss)                                    171           (664)          1,075           (354)

INTEREST EXPENSE                                                159            206             457            595

OTHER INCOME                                                     76             74             186            199
                                                        -----------    -----------     -----------    -----------
     Income (loss) from continuing operations
       before provision for (benefit from) income taxes          88           (796)            804           (750)

PROVISION FOR (BENEFIT FROM) INCOME TAXES                        53             16             411            (39)
                                                        -----------    -----------     -----------    -----------

     Income (loss) from continuing operations                    35           (812)            393           (711)

DISCONTINUED OPERATIONS:
 Loss from operations of Roxxi, Inc.                             --           (127)             --           (516)
 Loss on disposal of assets of Roxxi, Inc.                       --         (1,214)             --         (1,214)
                                                        -----------    -----------     -----------    -----------
     Net income (loss)                                  $        35    $    (2,153)    $       393    $    (2,441)
                                                        ===========    ===========     ===========    ===========
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE:
 Income (loss) from continuing operations               $      0.01    $     (0.14)    $      0.07    $     (0.13)
 Loss from discontinued operations                               --          (0.24)             --          (0.30)
                                                        -----------    -----------     -----------    -----------
     Net income (loss)                                  $      0.01    $     (0.38)    $      0.07    $     (0.43)
                                                        ===========    ===========     ===========    ===========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
 USED IN COMPUTING DILUTED PER SHARE INFORMATION          5,843,157      5,667,375       5,807,007      5,643,818
                                                        ===========    ===========     ===========    ===========
</TABLE>
                 The accompanying notes are an integral part of
               these condensed consolidated financial statements.

                                      -4-
<PAGE>
                     ROYAL PRECISION, INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                             (dollars in thousands)

<TABLE>
<CAPTION>
                                                                  NINE MONTHS ENDED
                                                             --------------------------
                                                             FEBRUARY 29,   FEBRUARY 28,
                                                                2000            1999
                                                              -------         -------
<S>                                                           <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income (loss)                                            $   393         $(2,441)
  Adjustments to reconcile net income (loss) to net
   cash provided by operating activities of continuing
   operations--
  Loss from discontinued operations                                --             516
  Loss on sale of discontinued operations                          --           1,214
  Depreciation and amortization                                   901             703
  Loss on retirement and sale of fixed assets                      18              --
  Changes in operating assets and liabilities--
   Accounts receivable, net                                       811             965
   Inventories                                                 (1,027)         (1,682)
   Other assets                                                   132             (47)
   Accounts payable and accrued expenses                          392             399
   Other liabilities                                               --             (44)
                                                              -------         -------
  Net cash provided by (used in) operating
    activities of continuing operations                         1,620            (417)
                                                              -------         -------
CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchases of equipment, net                                   (1,564)           (754)
 Payments from net investment in capital lease                     --             198
 Merger costs                                                      --            (162)
                                                              -------         -------
 Net cash used in investing activities of
   continuing operations                                       (1,564)           (718)
                                                              -------         -------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of long-term debt                          --           5,140
 Proceeds from exercise of common stock options                     9              17
 Borrowings under lines-of-credit, net                            749             515
 Repayments of long-term debt and capital
   lease obligations                                             (977)         (4,245)
                                                              -------         -------
 Net cash (used in) provided by financing
   activities of continuing operations                           (219)          1,427
                                                              -------         -------

NET CASH USED IN DISCONTINUED OPERATIONS                           --            (299)
                                                              -------         -------

DECREASE IN CASH                                                 (163)             (7)

CASH, beginning of period                                         184              28
                                                              -------         -------
CASH, end of period                                           $    21         $    21
                                                              =======         =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 Cash paid during the period for--
   Interest                                                   $   473         $   649
                                                              =======         =======
   Income taxes                                               $    41         $    82
                                                              =======         =======
</TABLE>
                 The accompanying notes are an integral part of
               these condensed consolidated financial statements.

                                      -5-
<PAGE>
                     ROYAL PRECISION, INC. 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, "RP" or the "Company") presented herein have been
   prepared pursuant to the rules of the Securities and Exchange  Commission for
   quarterly  reports on Form 10-Q and do not include all of the information and
   note disclosures required by accounting  principles generally accepted in the
   United States.  These condensed  consolidated  financial statements should be
   read in conjunction with the Company's  consolidated financial statements and
   notes  thereto  for the  fiscal  year  ended  May 31,  1999  included  in the
   Company's  Form  10-KSB.  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 that would be expected for the full year.

   ORGANIZATION --

   The accompanying  condensed  consolidated  financial statements include Royal
   Precision,  Inc. and its three wholly-owned  subsidiaries,  FM Precision Golf
   Manufacturing  Corp. ("FMP"), FM Precision Golf Sales Corp. ("FMP Sales") and
   Royal Grip,  Inc.  ("RG")  which has a  wholly-owned  subsidiary,  Royal Grip
   Headwear Company. All significant intercompany balances and transactions have
   been  eliminated  in  consolidation.  As  discussed  in Note 7,  the  Company
   disposed of the  operating  assets of Royal Grip Headwear  Company  (formerly
   known as Roxxi, Inc. "Roxxi") in March 1999.  Results of operations for Roxxi
   for  all  periods   through  May  31,  1999  are  reflected  as  discontinued
   operations.

   BUSINESS --

   RP is a holding company which carries on its business  operations through its
   subsidiaries. The Company manufactures and distributes steel golf club shafts
   and designs and distributes golf club grips and graphite golf club shafts for
   sale to original  equipment  manufacturers  ("OEMs") and to distributors  and
   retailers  for  use  in  the  replacement  market.  RP's  products  are  sold
   throughout the United States as well as internationally,  primarily in Japan,
   Australia, the United Kingdom and Canada.

   USE OF ESTIMATES --

   The  preparation  of  financial  statements  in  conformity  with  accounting
   principles  generally  accepted in the United States  requires  management to
   make estimates and assumptions that affect the reported amounts of assets and
   liabilities  and disclosure of contingent  assets and liabilities at the date
   of the financial statements such as the estimate for impairment of long-lived
   assets and the reported amounts of revenues and expenses during the reporting
   period. Actual results could differ from those estimates.


2. EARNINGS (LOSS) PER SHARE:

   The Company  accounts for earnings  (loss) per share in accordance  with SFAS
   No. 128,  "Earnings Per Share." Basic earnings  (loss) per share are based on
   the average number of common shares  outstanding  during the period.  Diluted
   earnings  (loss) per share  assumes,  in  addition  to the above,  a dilutive
   effect  of  common  share  equivalents   during  the  period.   Common  share
   equivalents represent dilutive stock options using the treasury stock method.
   The  number  of  shares  used in  computing  income  (loss)  from  continuing
   operations  per share for the three and nine months  ended  February 29, 2000
   and February 28, 1999 were as follows (in thousands):

                                      -6-
<PAGE>
                                                     THREE MONTHS ENDED
                                                 ----------------------------
                                                 FEBRUARY 29,    FEBRUARY 28,
                                                     2000           1999
                                                 ------------    ------------
   Basic:
     Average common shares outstanding               5,675         5,667

   Diluted:
     Dilutive effect of stock options                  168            --
                                                     -----         -----
     Average common shares outstanding               5,843         5,667
                                                     =====         =====

                                                      NINE MONTHS ENDED
                                                 ----------------------------
                                                 FEBRUARY 29,    FEBRUARY 28,
                                                     2000           1999
                                                 ------------    ------------
   Basic:
     Average common shares outstanding               5,671         5,644

   Diluted:
     Dilutive effect of stock options                  136            --
                                                     -----         -----
     Average common shares outstanding               5,807         5,644
                                                     =====         =====

   For the three and nine months ended  February 28, 1999,  basic average common
   shares outstanding for discontinued  operations were 5,667,375 and 5,643,818,
   respectively.  Basic and diluted  earnings (loss) per share were the same for
   all periods  presented.  Loss per share for the three and nine  months  ended
   February 28, 1999 was not affected by stock options  because their effect was
   anti-dilutive.

3. NEW ACCOUNTING PRONOUNCEMENT:

   In June 1998,  the  Financial  Accounting  Standards  Board  ("FASB")  issued
   Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for
   Derivative Instruments and Hedging Activities," which requires that an entity
   recognize all derivatives as either assets or liabilities in the statement of
   financial position and measure those instruments at fair value. In June 1999,
   the FASB issued SFAS No. 137 which  deferred the  effective  date of SFAS No.
   133.  The  Company  will be  required to adopt SFAS No. 133 during the fiscal
   year ending May 31, 2001. The Company does not anticipate any material impact
   resulting from the adoption of SFAS No. 133.

4. INVENTORIES:

   Inventories are valued at the lower of cost or market.  Cost is determined on
   the first-in,  first-out method.  Inventories as of February 29, 2000 and May
   31, 1999 consisted of the following (in thousands):

                                            FEBRUARY 29, 2000       MAY 31, 1999
                                            -----------------       ------------
   Raw materials                                 $  525                $  471
   Work-in-process                                2,121                 1,566
   Finished goods                                 3,395                 2,477
                                                 ------                ------
                                                 $6,041                $4,514
                                                 ======                ======

5. BORROWING ARRANGEMENTS:

   FMP  has a  credit  facility  consisting  of a  term  loan  and  a  revolving
   line-of-credit. The FMP term loan of $2.9 million at February 29, 2000 is due
   in monthly principal  installments of $65,000 until its maturity in September
   2002. The amount available for borrowings under the revolving  line-of-credit

                                      -7-
<PAGE>
   is based upon the levels of eligible FMP accounts receivable and inventories,
   as defined,  subject to a maximum  borrowing of $5.0 million.  As of February
   29, 2000, FMP had $3.5 million outstanding under its revolving line-of-credit
   and $1.0 million available for additional borrowings.  The FMP line-of-credit
   expires in September 2002.

   RG  has  a  credit  facility  consisting  of a  term  loan  and  a  revolving
   line-of-credit.  The RG term loan of $0.5 million at February 29, 2000 is due
   in monthly principal  installments of $10,500 until its maturity in September
   2002. The amount available for borrowings under the revolving  line-of-credit
   is based upon the levels of eligible RG accounts  receivable and inventories,
   as defined,  subject to a maximum  borrowing of $1.5 million.  As of February
   29, 2000, RG had $0.4 million outstanding under its revolving  line-of-credit
   and $0.3 million available for additional  borrowings.  The RG line-of-credit
   expires in September 2002.

   Borrowings under the term loans and revolving  lines-of-credit of both credit
   facilities  bear  interest at a rate per annum equal to the prime rate (8.75%
   at February 29, 2000) plus 0.75% and 0.25%, respectively,  and are secured by
   substantially all of the Company's assets.

   The  FMP  and RG  credit  facilities  contain  certain  financial  and  other
   covenants which,  among other things,  limit annual capital  expenditures and
   dividends  and  require the  maintenance  of minimum  monthly  and  quarterly
   earnings or maximum monthly and quarterly losses,  and minimum quarterly debt
   service coverage ratios,  as defined.  The Company was in compliance with all
   financial loan covenants at February 29, 2000.

   On  March  24,  2000,  the FMP and RG  credit  facilities  were  amended  and
   restated.  The amount  available  for  borrowings  under the FMP facility was
   increased by $0.5 million. This additional borrowing capacity will be reduced
   by $0.1  million  monthly  beginning  April 2000 and will  expire on July 31,
   2000. Also, an additional FMP term loan of up to $0.4 million was established
   to finance certain capital expenditures  currently in process to increase the
   existing  manufacturing  capacity of pro grade steel golf club shafts.  Funds
   under this loan can be advanced upon the  completion  of the capital  project
   which is anticipated to be in the second quarter of fiscal year 2001.

6. INFORMATION ON SEGMENTS:

   The Company has two reportable segments in continuing  operations:  golf club
   shafts and golf club grips.  The accounting  policies of the segments are the
   same as those described in the summary of significant  accounting policies in
   Form 10-KSB for the fiscal year ended May 31, 1999. The Company evaluates the
   performance of these segments based on segment  operating  income or loss and
   cash  flows.  The  Company  allocates  certain  administrative   expenses  to
   segments. The amounts in this illustration are the amounts in reports used by
   the chief operating officer (in thousands):

                                            THREE MONTHS ENDED FEBRUARY 29, 2000
                                            ------------------------------------
                                               GOLF CLUB    GOLF CLUB
                                                 SHAFTS       GRIPS      TOTAL
                                                 ------       -----      -----
   Net sales                                    $ 6,066     $   949     $ 7,015
   Operating income (loss)                          263         (92)        171
   Depreciation and amortization                     87         211         298

   Total assets for reportable segments         $13,390     $17,674     $31,064
   Assets of discontinued operation                                          34
   Elimination of investment in subsidiaries                             (6,092)
                                                                        -------
   Consolidated total assets                                            $25,006
                                                                        =======
                                      -8-
<PAGE>
                                            THREE MONTHS ENDED FEBRUARY 28, 1999
                                            ------------------------------------
                                              GOLF CLUB    GOLF CLUB
                                               SHAFTS        GRIPS      TOTAL
                                               ------        -----      -----
   Net sales                                   $ 4,178     $   940     $ 5,118
   Operating loss                                 (521)       (143)       (664)
   Depreciation and amortization                    76         162         238

   Total assets for reportable segments        $10,752     $21,054     $31,806
   Assets of discontinued operation                                        630
   Elimination of investment in subsidiaries                            (7,213)
                                                                       -------
   Consolidated total assets                                           $25,223
                                                                       =======

                                             NINE MONTHS ENDED FEBRUARY 29, 2000
                                            ------------------------------------
                                              GOLF CLUB    GOLF CLUB
                                                SHAFTS       GRIPS      TOTAL
                                                ------       -----      -----
   Net sales                                  $16,938       $3,013     $19,951
   Operating income (loss)                      1,260         (185)      1,075
   Depreciation and amortization                  260          641         901

                                             NINE MONTHS ENDED FEBRUARY 28, 1999
                                            ------------------------------------
                                              GOLF CLUB    GOLF CLUB
                                                SHAFTS       GRIPS      TOTAL
                                                ------       -----      -----
   Net sales                                   $12,220      $2,787    $ 15,007
   Operating loss                                 (239)       (115)       (354)
   Depreciation and amortization                   213         490         703

7. DISCONTINUED OPERATIONS:

   In March 1999,  the  operating  assets of Roxxi were  disposed of through two
   separate  transactions.  Roxxi sold its trade  name,  customer  list,  design
   database and related  computer  software and hardware for a royalty of 16% of
   the buyer's net sales of  Roxxi-licensed  products  for the  two-year  period
   beginning May 1, 1999. Roxxi also sold its manufacturing equipment,  finished
   goods  inventory  and raw  materials  to another  company for  $300,000 and a
   royalty of 2% of the buyer's net sales until the buyer has paid an additional
   $200,000.  Subsequently,  Roxxi's  name was  changed to Royal  Grip  Headwear
   Company.  The Company is accounting  for royalties as income is earned during
   the two year  period  beginning  May 1, 1999.  For the three and nine  months
   ended  February 29, 2000,  royalties of $30,000 and $119,000  were  recorded,
   respectively, and are reflected as other income in the accompanying condensed
   consolidated statements of operations.

8. TERMINATION OF MANUFACTURING SUPPLY CONTRACT:

   In May 1999, RG and Acushnet  Rubber Company  ("Acushnet")  executed a mutual
   release agreement  terminating  their  manufacturing and supply agreement and
   capital lease agreement (the "Termination Agreement"). Since January 1997, RG
   has  purchased  the majority of its supply of non-cord,  injected  grips from
   Acushnet.  The Company believes that its current  inventory of grips together
   with purchases from other existing  vendors will provide a sufficient  supply
   of grips to satisfy  customer  demand through  December 31, 2000. The Company
   has identified and is in various stages of  negotiations  with three separate
   grip  manufacturers  which the Company believes can maintain RG's standard of
   product quality and will facilitate a smooth transition from Acushnet.  There
   can be no  assurances  that the  Company  will be able to secure a source for
   grips on as favorable  terms or with the same or better  quality as Acushnet.
   In addition,  there can be no  assurances  that a transition to new suppliers
   will not result in  production  delays,  the loss of sales and key  customers
   which  would  materially  affect  RG's  financial  condition  and  results of
   operations.

                                      -9-
<PAGE>
   During the three months  ended  February 29,  2000,  Acushnet  completed  the
   production requirements of the Termination Agreement. Finished goods totaling
   approximately $1.2 million were transported from Acushnet to RG's warehouses.
   RG utilized a $0.5 million  purchase  credit it received in conjunction  with
   the Termination  Agreement to acquire the grips from Acushnet.  Additionally,
   the grip  manufacturing  equipment  was  removed  from  Acushnet's  plant and
   transported  to storage on RG's  property.  This equipment is no longer being
   used and is held for sale with a book value of $0.5 million.

9. TERMINATED MERGER AGREEMENT:

   In February 1999, the Company and Coyote Sports, Inc. ("Coyote") entered into
   a  merger  agreement  pursuant  to  which  RP  would  become  a  wholly-owned
   subsidiary of Coyote (the  "RP-Coyote  Merger").  In June 1999, the RP-Coyote
   Merger  agreement  was  terminated  at the  request of the  Company  due to a
   material change in the business of Coyote resulting in an inability to obtain
   suitable  long-term  financing.  The Company  incurred  professional  fees of
   $503,000  related  to the  RP-Coyote  Merger  during the three  months  ended
   February 28, 1999.

10. LITIGATION:

   On November 2, 1999,  R. R.  Donnelley & Sons Company,  Plaintiff,  vs. Royal
   Precision,  Inc.,  Defendant,  was filed in Superior Court,  Maricopa County,
   Arizona. In the matter, R. R. Donnelley & Sons Company  ("Donnelley") alleges
   that the  Company  is liable  under  breach  of  contract  for  approximately
   $280,000 in printing  costs  arising  from the  preparation  of a Joint Proxy
   Statement/Prospectus  related  to a proposed  merger  agreement  between  the
   Company and Coyote Sports,  Inc. which was terminated  prior to the effective
   date of the merger.  Management believes that the action is without merit and
   intends to defend it vigorously.

                                      -10-
<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

FORWARD LOOKING STATEMENTS --

The Private  Securities  Litigation  Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. The Company believes it has made forward-looking
statements  within the meaning of the  Litigation  Reform Act in this Form 10-Q,
Forms 10-QSB, Forms 10-KSB, Forms 8-K, and other written or oral statements made
by or on behalf of RP which  reflect RP's  current  views with respect to future
events and financial performance.  These forward-looking  statements are subject
to  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 international,  national, and
local economic conditions,  RP's dependence on discretionary  consumer spending,
customer concentration and their plans and commitments,  RP's cost and available
supply of raw materials,  the competitive  environment in which RP operates, the
timeliness and market acceptance of RP's new product introductions, RP's limited
operating  history,  RP's ability to protect its  intellectual  property rights,
seasonality  of sales,  fluctuations  in operating  results,  and changes in the
financial  markets  relating  to RP's  capital  structure  and cost of  capital.
Statements in this Form 10-Q, including the Notes to the Condensed  Consolidated
Financial Statements  ("Financial  Statements") and 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 RP's Form 10-KSB
for the fiscal year ended May 31, 1999.  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.

OVERVIEW --

Royal Precision, Inc. ("RP" or the "Company") is a holding company which carries
on its business operations through its three wholly-owned subsidiaries which are
FM Precision Golf  Manufacturing  Corp.  ("FMP"),  FM Precision Golf Sales Corp.
("FMP Sales"), and Royal Grip, Inc. ("RG") which has a wholly-owned  subsidiary,
Royal Grip  Headwear  Company.  RP  acquired RG on August 29, 1997 by means of a
merger whereby FMPSUB,  Inc. (a  wholly-owned  subsidiary of RP created for such
purpose)  merged with and into RG (the "FMP-RG  Merger").  RG was the  surviving
corporation  and became a wholly-owned  subsidiary of RP. As discussed in Note 7
to the Financial  Statements,  the Company  disposed of the operating  assets of
Royal Grip Headwear  Company  (formerly known as Roxxi,  Inc.  "Roxxi") in March
1999.  Results of operations  for Roxxi in all periods  through May 31, 1999 are
reflected as discontinued operations.

The Company  manufactures and distributes steel golf club shafts and designs and
distributes  golf club grips and graphite  golf club shafts for sale to original
equipment  manufacturers  ("OEMs") and to distributors  and retailers for use in
the replacement  market.  RP's products are sold throughout the United States as
well as internationally,  primarily in Japan, Australia,  the United Kingdom and
Canada.

The  Company  principally  operates  in the golf  equipment  industry  which has
historically  been seasonal in nature with consumer demand for product being the
strongest during the spring and summer months.

THREE MONTHS ENDED FEBRUARY 29, 2000 COMPARED TO THE THREE MONTHS ENDED FEBRUARY
28, 1999 --

NET SALES.  Net sales from  continuing  operations  for the three  months  ended
February 29, 2000 were $7.0 million, an increase of $1.9 million or 37% over net
sales from continuing operations of $5.1 million during the corresponding period
in 1999. Net sales of golf club shafts  increased by $1.9 million or 45% and net
sales of golf club grips were  consistent  at $0.9 million.  The increased  golf
club shaft sales reflect  continued strong demand for the Company's  proprietary
"Rifle" shafts.  Net sales of the Company's  higher priced,  pro grade golf club
shafts  including  the "Rifle"  increased by $1.7  million or 44%.  Sales of the
Company's  lower  priced,  commercial  grade golf club shafts  increased by $0.2
million or 57%.

COST OF SALES.  Cost of goods  sold  from  continuing  operations  for the three
months ended February 29, 2000 was $5.0 million,  an increase of $1.3 million or
37% over cost of goods sold from  continuing  operations of $3.7 million  during
the corresponding  period in 1999. Golf club shafts cost of goods sold increased
by $1.3  million or 41% as a result of higher  total net sales.  Golf club grips
cost of goods sold  increased  by $0.1  million or 17% due to  additional  costs

                                      -11-
<PAGE>
associated with the opening of a new West Coast distribution  center in December
1999.  Acushnet  Rubber  Company  ("Acushnet")  had  previously  warehoused  and
distributed  RG's grips under the  manufacturing  and supply  agreement.  RG has
assumed  responsibility  for these  functions  following the  termination of the
Acushnet  contracts.  Approximately  $50,000 in  additional  costs was  incurred
related to the new distribution  facility during the three months ended February
29,  2000  compared  to the  corresponding  period of 1999.  Also,  depreciation
expense of $60,000 was recorded on the grip manufacturing equipment while in use
by  Acushnet  during  the three  months  ended  February  29,  2000  whereas  no
depreciation  expense was recorded during the corresponding  period in 1999 when
the Acushnet capital lease contract was in effect.

GROSS PROFIT. Gross profit from continuing operations for the three months ended
February  29, 2000 was $2.0  million,  an  increase of $0.5  million or 37% over
gross profit from  continuing  operations of $1.5 million for the  corresponding
period in 1999.  Gross  profit from sales of golf club shafts  increased by $0.6
million or 57% to $1.7 million  due to higher  total net sales.  As a percentage
of sales,  the gross profit on sales of golf club shafts  increased  from 26% to
29%. Gross profit from sales of golf club grips decreased by $0.1 million or 27%
to $0.3 million  despite  consistent  net sales.  As a percentage of sales,  the
gross  profit  on sales  of golf  club  grips  decreased  from  37% to 27%.  The
decreased  margin  reflects   additional  costs  incurred  related  to  the  new
distribution  facility and additional  depreciation  expense recorded during the
three months ended  February 29, 2000  compared to the  corresponding  period in
1999.

SELLING,   GENERAL   AND   ADMINISTRATIVE   EXPENSES.   Selling,   general   and
administrative  expenses for the three months ended  February 29, 2000 were $1.7
million, an increase of 14% over selling, general and administrative expenses of
$1.5 million during the corresponding  period in 1999. The $0.2 million increase
reflects additional marketing and advertising costs associated with a television
commercial  campaign which was developed and first aired during the three months
ended  February  29,  2000.  As a  percentage  of sales,  selling,  general  and
administrative expenses declined from 29% during the three months ended February
28, 1999 to 24% during the corresponding period in 2000.

MERGER RELATED  EXPENSES.  The Company  incurred  professional  fees of $503,000
related to the RP-Coyote Merger during the three months ended February 28, 1999.
In June 1999, the merger  agreement was terminated at the request of the Company
due to a material change in the business of Coyote  resulting in an inability to
obtain suitable long-term financing.

AMORTIZATION  OF GOODWILL.  Goodwill was reduced in the fourth quarter of fiscal
1999 as a result of the utilization of pre-merger NOL  carryforwards and partial
reversal  of  the  valuation   allowance  on  pre-merger  deferred  tax  assets.
Therefore,  amortization  expense was  reduced  from  $129,000  during the three
months ended February 28, 1999 to $121,000 during the corresponding period ended
February 29, 2000.

INTEREST  EXPENSE.  Average  outstanding  borrowings were comparable  during the
three  month  periods  ended  February  29,  2000 and  February  28,  1999  and,
therefore, interest expense was consistent at $0.2 million.

OTHER  INCOME.  Other income of $76,000 for the three months ended  February 29,
2000 is  principally  comprised of royalties  earned on sales of Roxxi  headwear
products.  Other income of $74,000 for the three months ended  February 28, 1999
is  principally  comprised  of interest  income on the  Acushnet  capital  lease
receivable.

PROVISION FOR INCOME TAXES.  Provisions of $53,000 and $16,000 were recorded for
taxes on income from continuing  operations during the three month periods ended
February 29, 2000 and February 28, 1999, respectively.  Taxes are provided based
on the estimated  effective tax rate for the year which  considers the effect of
nondeductible goodwill amortization.

DISCONTINUED OPERATIONS. As discussed in Note 7 to the Financial Statements, the
Company  disposed of the operating  assets of Roxxi in March 1999 and recorded a
loss  provision of $1.2 million during the three months ended February 28, 1999.
Losses from the operations of Roxxi for the three months ended February 28, 1999
were $0.1 million.

NINE MONTHS ENDED  FEBRUARY 29, 2000 COMPARED TO THE NINE MONTHS ENDED  FEBRUARY
28, 1999 --

NET SALES.  Net sales  from  continuing  operations  for the nine  months  ended
February  29, 2000 were $20.0  million,  an increase of $5.0 million or 33% over
net sales from continuing  operations of $15.0 million during the  corresponding
period in 1999.  Net sales of golf club shafts  increased by $4.8 million or 39%
and net sales of golf club grips  increased by $0.2 million or 8%. The increased

                                      -12-
<PAGE>
golf  club  shaft  sales  reflect  continued  strong  demand  for the  Company's
proprietary  "Rifle" shafts. Net sales of the Company's higher priced, pro grade
golf club shafts  including the "Rifle"  increased by $5.2 million or 53%. Sales
of the Company's lower priced,  commercial  grade golf club shafts  decreased by
$0.5 million or 22%.  Sales of these shafts were  negatively  impacted  when the
Company  instituted a  significant  price  increase  during the first quarter of
fiscal 1999. In response to these unfavorable  results, the Company subsequently
modified its pricing structure in an effort to increase sales of these shafts in
future periods.  These efforts  resulted in increased sales of commercial  grade
shafts of $0.2 million  during the three months ended February 29, 2000 compared
to the corresponding  period of 1999. The increased golf club grip sales reflect
the  success  of a new  buffed  product  introduced  to the  Japanese  market in
November 1998. Sales of this product for the nine months ended February 29, 2000
were $1.0 million  compared to $0.2 million during the  corresponding  period in
1999.

COST OF SALES. Cost of goods sold from continuing operations for the nine months
ended  February 29, 2000 was $13.7  million,  an increase of $3.8 million or 39%
over cost of goods sold from  continuing  operations of $9.9 million  during the
corresponding  period in 1999.  Golf club shafts cost of goods sold increased by
$3.3  million or 40% and golf club grips  cost of goods sold  increased  by $0.5
million or 35%, both as a result of higher total net sales.

GROSS PROFIT. Gross profit from continuing  operations for the nine months ended
February  29, 2000 was $6.3  million,  an  increase of $1.1  million or 22% over
gross profit from  continuing  operations of $5.2 million for the  corresponding
period in 1999.  Gross  profit from sales of golf club shafts  increased by $1.4
million or 36% to $5.4 million due to higher  total net  sales.  As a percentage
of sales,  the gross  profit on sales of golf club shafts was  unchanged at 32%.
Gross  profit from sales of golf club grips  decreased by $0.3 million or 26% to
$0.9 million  despite an increase in net sales.  As a percentage  of sales,  the
gross  profit  on sales  of golf  club  grips  decreased  from 44% to 30%.  This
decreased  margin  reflects a  different  mix of  products  sold  during the two
periods.  Beginning  in November  1998,  the Company  introduced  the new buffed
product for the Japanese market which is being manufactured at a higher cost and
is being sold at a lower  profit  margin than other RG  products.  Sales of this
product  represented 34% of sales during the nine months ended February 29, 2000
compared  to only 8% during  the  corresponding  period  in 1999.  Additionally,
depreciation  expense of  approximately  $0.2  million was  recorded on the grip
manufacturing  equipment  while in use by Acushnet  during the nine months ended
February  29,  2000  whereas no  depreciation  expense was  recorded  during the
corresponding  period in 1999 when the Acushnet  capital  lease  contract was in
effect.

SELLING,   GENERAL   AND   ADMINISTRATIVE   EXPENSES.   Selling,   general   and
administrative  expenses for the nine months  ended  February 29, 2000 were $4.8
million, an increase of 5% over selling, general, and administrative expenses of
$4.6 million during the corresponding  period in 1999. The $0.2 million increase
reflects additional marketing and advertising costs associated with a television
commercial  campaign which was developed and first aired during the three months
ended  February  29,  2000.  As a  percentage  of sales,  selling,  general  and
administrative  expenses declined from 31% during the nine months ended February
28, 1999 to 24% during the corresponding period in 2000.

MERGER RELATED  EXPENSES.  The Company  incurred  professional  fees of $503,000
related to the RP-Coyote Merger during the nine months ended February  28, 1999.
In June 1999, the merger  agreement was terminated at the request of the Company
due to a material change in the business of Coyote  resulting in an inability to
obtain suitable long-term financing.

AMORTIZATION  OF GOODWILL.  Goodwill was reduced in the fourth quarter of fiscal
1999 as a result of the utilization of pre-merger NOL  carryforwards and partial
reversal  of  the  valuation   allowance  on  pre-merger  deferred  tax  assets.
Therefore, amortization expense was reduced from $387,000 during the nine months
ended February 28, 1999 to $364,000 during the corresponding period in 2000.

INTEREST  EXPENSE.  In October 1998, FMP entered into a new credit facility with
RG's  lender  and  paid off all  existing  loans to  FMP's  previous  lender.  A
prepayment  penalty of $75,000 was incurred  related to this transaction and was
reflected as a component of the $0.6 million  interest  expense  during the nine
months ended February 28, 1999. Interest expense during the corresponding period
in 2000 was $0.5 million.

OTHER  INCOME.  Other income of $186,000 for the nine months ended  February 29,
2000 is  principally  comprised of royalties  earned on sales of Roxxi  headwear
products.  Other income of $199,000 for the nine months ended  February 28, 1999
is  principally  comprised  of interest  income on the  Acushnet  capital  lease
receivable.

PROVISION FOR (BENEFIT  FROM) INCOME TAXES. A provision of $411,000 was recorded
for taxes on income from  continuing  operations  during the nine  months  ended

                                      -13-
<PAGE>
February  29,  2000 and a  benefit  of  $39,000  was  recorded  on the loss from
continuing  operations  during  the  corresponding  period  in 1999.  Taxes  are
provided based on the estimated  effective tax rate for the year which considers
the effect of nondeductible goodwill amortization.

DISCONTINUED OPERATIONS. As discussed in Note 7 to the Financial Statements, the
Company  disposed of the operating  assets of Roxxi in March 1999 and recorded a
loss  provision of $1.2 million  during the nine months ended February 28, 1999.
Losses from the  operations of Roxxi for the nine months ended February 28, 1999
were $0.5 million.

LIQUIDITY AND CAPITAL RESOURCES --

At February 29, 2000, RP had working capital of $5.9 million and a current ratio
of 2.2 to 1 as compared to working  capital of $5.8 million and a current  ratio
of 2.2 to 1 at May 31, 1999.

FMP  has  a  credit  facility   consisting  of  a  term  loan  and  a  revolving
line-of-credit. The FMP term loan of $2.9 million at February 29, 2000 is due in
monthly principal  installments of $65,000 until its maturity in September 2002.
The amount available for borrowings under the revolving  line-of-credit is based
upon the levels of eligible FMP accounts receivable and inventories, as defined,
subject to a maximum borrowing of $5.0 million. As of February 29, 2000, FMP had
$3.5 million  outstanding  under its revolving  line-of-credit  and $1.0 million
available for additional borrowings. The FMP line-of-credit expires in September
2002.

RG  has  a  credit   facility   consisting  of  a  term  loan  and  a  revolving
line-of-credit.  The RG term loan of $0.5 million at February 29, 2000 is due in
monthly principal  installments of $10,500 until its maturity in September 2002.
The amount available for borrowings under the revolving  line-of-credit is based
upon the levels of eligible RG accounts receivable and inventories,  as defined,
subject to a maximum borrowing of $1.5 million.  As of February 29, 2000, RG had
$0.4 million  outstanding under its revolving  line-of-credit  and  $0.3 million
available for additional borrowings.  The RG line-of-credit expires in September
2002.

Borrowings  under the term loans and  revolving  lines-of-credit  of both credit
facilities  bear  interest at a rate per annum equal to the prime rate (8.75% at
February  29,  2000)  plus  0.75% and 0.25%,  respectively,  and are  secured by
substantially all of the Company's assets.

The FMP and RG credit  facilities  contain certain financial and other covenants
which, among other things,  limit annual capital  expenditures and dividends and
require the  maintenance  of minimum  monthly and quarterly  earnings or maximum
monthly and  quarterly  losses,  and minimum  quarterly  debt  service  coverage
ratios,  as defined.  The  Company was in  compliance  with all  financial  loan
covenants at February 29, 2000.

On March 24, 2000, the FMP and RG credit  facilities  were amended and restated.
The amount available for borrowings under the FMP facility was increased by $0.5
million.  This  additional  borrowing  capacity  will be reduced by $0.1 million
monthly  beginning  April  2000  and will  expire  on July 31,  2000.  Also,  an
additional  FMP term  loan of up to $0.4  million  was  established  to  finance
certain  capital  expenditures  currently  in process to increase  the  existing
manufacturing  capacity  of pro grade steel golf club  shafts.  Funds under this
loan can be  advanced  upon  the  completion  of the  capital  project  which is
anticipated to be in the second quarter of fiscal year 2001.

The Company  believes  that its  existing  capital  resources  and credit  lines
available are  sufficient to fund its  operations  and capital  requirements  as
presently planned over the next twelve months.

During the nine months ended  February 29, 2000,  net cash provided by operating
activities  was $1.6 million  which  primarily  resulted from net income of $0.4
million,  depreciation and amortization of $0.9 million,  a decrease in accounts
receivable  of $0.8  million and an  increase  in  accounts  payable and accrued
expenses of $0.4 million.  Cash provided by operating  activities was reduced by
an increase in inventories of $1.0 million.

Net cash used in investing  activities  for the nine months  ended  February 29,
2000 was $1.6  million for the purchase of property,  plant and  equipment.  The
Company  estimates that capital  expenditures for the fiscal year ending May 31,
2000 will be approximately $2.2 million. The Company is assessing its steel golf
club shaft  manufacturing  capacities  compared to the  current and  anticipated
future volume of customer  orders.  Based on this  assessment and the success of
ongoing  projects to increase  production  volumes,  significant  future capital
expenditures  may be  required  at the FMP  manufacturing  facility  to increase
production capacity for pro grade steel golf club shafts.

                                      -14-
<PAGE>
Net cash used in financing  activities  for the nine months  ended  February 29,
2000, was $0.2 million  resulting from  repayments of long term debt and capital
lease  obligations of $1.0 million and net borrowings under  lines-of-credit  of
$0.8 million.

YEAR 2000 ASSESSMENT --

During the two year  period  ended  December  31,  1999,  the  Company  expended
approximately  $100,000  to  purchase  and install  new  computer  hardware  and
software  resulting  in all  Company  hardware  and  software  being  Year  2000
compliant and approximately  $20,000 to evaluate the Company's  internal systems
for Year 2000 problems.

The  Company  did not  experience  any  disruptions  in its  ability  to conduct
business due to Year 2000 problems. Also, no customers,  suppliers, or financial
institutions  have  informed  the  Company  of any Year 2000  issues  that would
materially affect the Company.

BUSINESS ENVIRONMENT AND FUTURE RESULTS --

RELIANCE ON THIRD  PARTY  SUPPLIERS.  In May 1999,  RG and  Acushnet  executed a
mutual release agreement  terminating  their  manufacturing and supply agreement
and capital lease agreement (the "Termination  Agreement").  Since January 1997,
RG has  purchased  the majority of its supply of non-cord,  injected  grips from
Acushnet. The Company believes that its current inventory of grips together with
purchases from other existing vendors will provide a sufficient  supply of grips
to satisfy customer demand through December 31, 2000. The Company has identified
and is in various stages of negotiations with three separate grip  manufacturers
which the Company  believes can maintain  RG's  standard of product  quality and
will facilitate a smooth  transition  from Acushnet.  There can be no assurances
that the Company will be able to secure a source for grips on as favorable terms
or with the same or better  quality as Acushnet.  In  addition,  there can be no
assurances  that a transition  to new  suppliers  will not result in  production
delays,  the loss of sales and key customers which would materially  affect RG's
financial condition and results of operations.

During  the three  months  ended  February  29,  2000,  Acushnet  completed  the
production  requirements of the Termination  Agreement.  Finished goods totaling
approximately $1.2 million were transported from Acushnet to RG's warehouses. RG
utilized a $0.5  million  purchase  credit it received in  conjunction  with the
Termination Agreement to acquire the grips from Acushnet. Additionally, the grip
manufacturing  equipment was removed from  Acushnet's  plant and  transported to
storage on RG's property. This equipment is no longer being used and is held for
sale with a book value of $0.5 million.

DISCONTINUED  OPERATIONS.  In March  1999,  the  operating  assets of Roxxi were
disposed  of through  two  separate  transactions.  Roxxi  sold its trade  name,
customer list,  design database and related computer software and hardware for a
royalty  of 16% of the  buyer's  net sales of  Roxxi-licensed  products  for the
two-year  period  beginning  May 1,  1999.  Roxxi  also  sold its  manufacturing
equipment,  finished  goods  inventory and raw materials to another  company for
$300,000  and a royalty of 2% of the  buyer's net sales until the buyer has paid
an  additional  $200,000.  Subsequently,  Roxxi's name was changed to Royal Grip
Headwear  Company.  The Company is accounting  for royalties as income is earned
during the two year period  beginning May 1, 1999. For the three and nine months
ended  February 29,  2000,  royalties  of $30,000 and  $119,000  were  recorded,
respectively,  and are reflected as other income in the  accompanying  condensed
consolidated statements of operations.

                                      -15-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

DERIVATIVE FINANCIAL INSTRUMENTS,  OTHER FINANCIAL  INSTRUMENTS,  AND DERIVATIVE
COMMODITY INSTRUMENTS.

At  February  29,  2000,  the  Company  did not  participate  in any  derivative
financial  instruments or other  financial and commodity  instruments  for which
fair value disclosure would be required under Statement of Financial  Accounting
Standards No. 107. The Company holds no investment securities that would require
disclosure of market risk.

PRIMARY MARKET RISK EXPOSURE.

The Company's  primary  market risk  exposure  relates to its variable rate debt
obligations which are fully described in Note 5 to the Financial  Statements.  A
one percent change in the prime lending rate would have an effect of $18,000 and
$51,000 on interest  expense for the three and nine months  ended  February  29,
2000, respectively.

The  Company  has  entered  into a contract  of  approximately  $0.4  million to
purchase certain manufacturing equipment. This contract is denominated in German
Deutsche Marks.  The Company expects to take delivery of this equipment and make
final  payment  under the contract in October  2000.  The Company has not hedged
this transaction as of February 29, 2000 and,  accordingly,  will be impacted by
any change in the  exchange  rate prior to the ultimate  settlement  date of the
contract.

                                      -16
<PAGE>
                                     PART II
                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

     On November 2, 1999, R. R. Donnelley & Sons Company,  Plaintiff,  vs. Royal
Precision,  Inc.,  Defendant,  was filed in  Superior  Court,  Maricopa  County,
Arizona. This matter was first reported in the registrant's Form 10-Q filing for
the period ended November 30, 1999. There were no material  developments in this
matter during the quarter ended February 29, 2000.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.

     None.

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 ON FORM 8-K.

     (a)  Exhibits.

          (3)  Certificate of Incorporation and Bylaws

          Exhibit 3.1.  Amended and Restated  Certificate  of  Incorporation  of
     Royal  Precision,  Inc.  (restated  to  reflect  amendment  filed  with the
     Secretary  of State of  Delaware  on October  19,  1999)  (incorporated  by
     reference  to Exhibit 3.1 of the  Company's  Form 10-Q for the period ended
     November 30, 1999).

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

          (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 at Exhibit 3.1.

          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 Form S-4).

          (10) Material Agreements.

          Exhibit 10.1. Third Amendment to Credit and Security Agreement between
     FM Precision Golf  Manufacturing  Corp.,  FM Precision Golf Sales Corp. and
     Wells Fargo Business Credit, Inc. dated March 24, 2000.

          Exhibit  10.2.  Fourth  Amendment to Amended and  Restated  Credit and
     Security  Agreement  between Royal Grip,  Inc., Royal Grip Headwear Company
     and Wells Fargo Business Credit, Inc. dated March 24, 2000.

                                      -17-
<PAGE>
          Exhibit 27.

          Financial Data Schedule (submitted  electronically for SEC information
     only)

          (b)  Reports on Form 8-K.

          There were no reports on Form 8-K filed by the  Registrant  during the
     quarter ended February 29, 2000.

                                   SIGNATURES

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

                                        ROYAL PRECISION, INC.

Date April 7, 2000                      By /s/ Thomas Schneider
     -------------                         -------------------------------------
                                           Thomas Schneider, President
                                           and Chief Operating Officer


                                        By /s/ Kevin Neill
                                           -------------------------------------
                                           Kevin Neill, Vice President - Finance
                                           and Chief Financial Officer
                                           (chief accounting officer)

                                      -18-
<PAGE>
                                  EXHIBIT INDEX
                                                                       Page in
                                                                    Sequentially
                                                                      Numbered
Exhibit                                                                 Copy
-------                                                                 ----
  3.1            Amended and Restated  Certificate of Incorporation
                 of Royal  Precision,  Inc.  (restated  to  reflect
                 amendment  filed  with the  Secretary  of State of
                 Delaware on October 19, 1999).                           *

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

  4.1            See Articles  FOUR,  FIVE and SEVEN of the Amended
                 and Restated  Certificate of  Incorporation of the
                 registrant at Exhibit 3.1.

  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 Form S-4).

  10.1           Third  Amendment to Credit and Security  Agreement
                 between FM Precision Golf Manufacturing  Corp., FM
                 Precision   Golf  Sales  Corp.   and  Wells  Fargo
                 Business Credit, Inc. dated March 24, 2000.              20

  10.2           Fourth  Amendment to Amended and  Restated  Credit
                 and Security  Agreement  between Royal Grip, Inc.,
                 Royal  Grip  Headwear   Company  and  Wells  Fargo
                 Business Credit, Inc. dated March 24, 2000.              35

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

----------
* Incorporated by reference