<PAGE>   1
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549-1004
                                   FORM 10-QSB

(Mark one)

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

         For the quarterly period ended February 28, 1998

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT.

For the transition period from __________ to _________.

Commission File Number: 0-71735

                              ROYAL PRECISION, INC.
        (Exact Name of Small Business Issuer 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)

                                 (602) 627-0200
                (Issuer's Telephone Number, Including Area Code)


    (Former Name, Former Address and Former Fiscal Year if Changed Since Last
                                     Report)
                              3490 Clubhouse Drive
                                   Suite 102
                          Jackson Hole, Wyoming 83001

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No___


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

<TABLE>
<CAPTION>
  Title of each class                          Outstanding at April 13, 1998
----------------------                         -------------------------------
<S>                                            <C>
Common Stock, par value $.001                            5,601,697 Shares
</TABLE>


Transitional Small Business Disclosure Format (Check One):
Yes___  No x

                                       -1-
<PAGE>   2
ITEM 1.

                     ROYAL PRECISION, INC. AND SUBSIDIARIES
              (formerly, FM Precision Golf Corp. and Subsidiaries)
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                             (dollars in thousands)

<TABLE>
<CAPTION>
                                                            February 28,     May 31,
                                                                1998          1997
                                                              --------      --------
                                                            (unaudited)
                                     ASSETS
<S>                                                        <C>             <C>
CURRENT ASSETS:
  Cash                                                       $     --      $     28
  Accounts receivable, net of allowance
    for doubtful accounts of $617
    at February 28, 1998 and $88
    at May 31, 1997                                             3,918         3,258
  Inventories, net                                              3,776         3,493
  Current portion of net investment
    in lease                                                      235            --
  Prepaid expenses and other current assets                        74            63
  Deferred income taxes                                           223           223
                                                             --------      --------
              Total current assets                              8,226         7,065
                                                             --------      --------
PROPERTY, PLANT AND EQUIPMENT:
  Land and improvements                                           123            38
  Buildings and improvements                                      683           363
  Machinery and equipment                                       4,315         2,670
                                                             --------      --------
                                                                5,121         3,071
  Less - Accumulated depreciation                                (629)         (203)
                                                             --------      --------
                                                                4,492         2,868
                                                             --------      --------
GOODWILL, net                                                  10,158            --
                                                             --------      --------
DEFERRED MERGER COSTS                                              --           465
                                                             --------      --------
NET INVESTMENT IN LEASE, less current portion                   2,635            --
                                                             --------      --------
DEFERRED INCOME TAXES                                              26            26
                                                             --------      --------
                                                             $ 25,537      $ 10,424
                                                             ========      ========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current portion of long-term debt
    and capital lease obligations                            $  4,146      $  2,466
  Accounts payable                                              2,093         1,258
  Accrued expenses                                              1,457         1,725
                                                             --------      --------
              Total current liabilities                         7,696         5,449
                                                             --------      --------
LONG-TERM DEBT AND CAPITAL LEASE
  OBLIGATIONS, less current portion                             3,435         2,617
                                                             --------      --------
OTHER LIABILITIES                                                 189            --
                                                             --------      --------
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; 5,598,942 and
    4,175,394 shares issued and
    outstanding at February 28, 1998 and
    May 31, 1997, respectively                                      6             4
  Additional paid-in capital                                   13,820         1,421
  Retained earnings                                               391           933
                                                             --------      --------
              Total stockholders' equity                       14,217         2,358
                                                             --------      --------
                                                             $ 25,537      $ 10,424
                                                             ========      ========
</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)
                             (dollars in thousands)

<TABLE>
<CAPTION>
                                         Three Months Ended             Nine Months Ended
                                    ---------------------------    ---------------------------
                                    February 28,    February 28,   February 28,    February 28,
                                        1998            1997           1998            1997
                                    -----------     -----------    -----------     -----------
<S>                                <C>             <C>            <C>             <C>
NET SALES:
   Golf shafts                     $     5,326     $     5,123    $    14,790     $    15,690
   Golf grips                            1,093              --          2,391              --
   Headwear                                814              --          1,836              --
                                   -----------     -----------    -----------     -----------
                                         7,233           5,123         19,017          15,690
                                   -----------     -----------    -----------     -----------
COST OF SALES:
   Golf shafts                           3,954           4,332         10,853          11,311
   Golf grips                              686              --          1,029              --
   Headwear                                602              --          1,407              --
                                   -----------     -----------    -----------     -----------
                                         5,242           4,332         13,289          11,311
                                   -----------     -----------    -----------     -----------
   Gross profit                          1,991             791          5,728           4,379

SELLING, GENERAL AND
   ADMINISTRATIVE EXPENSES               2,227             905          5,495           2,738

NONRECURRING MERGER
   RELATED EXPENSES                         90              --            765              --
                                   -----------     -----------    -----------     -----------
   Operating income (loss)                (326)           (114)          (532)          1,641


INTEREST EXPENSE                           191             126            484             345

INTEREST INCOME                            (56)             --           (113)             --
                                   -----------     -----------    -----------     -----------
   Income (loss) before income
     taxes                                (461)          (240)           (903)          1,296

BENEFIT FROM (PROVISION FOR)
   INCOME TAXES                            184            106             361            (553)
                                   -----------     -----------    -----------     -----------
   Net income (loss)               $      (277)    $     (134)    $      (542)    $       743
                                   ===========     ===========    ===========     ===========

BASIC AND DILUTED NET INCOME
   (LOSS) PER COMMON SHARE         $     (0.05)    $    (0.03)    $     (0.11)    $      0.18
                                   ===========     ===========    ===========     ===========

WEIGHTED AVERAGE NUMBER OF
   COMMON SHARES
   OUTSTANDING                       5,596,914      4,175,394       5,127,624       4,175,394
                                   ===========     ===========    ===========     ===========
</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)
                                 (in thousands)

<TABLE>
<CAPTION>
                                                           Nine Months Ended
                                                        -----------------------
                                                      February 28,      February 28,
                                                          1998             1997
                                                        --------         --------
<S>                                                 <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                 $   (542)        $    743
  Adjustments to reconcile net income
    (loss) to net cash provided by
    operating activities -
      Depreciation and amortization                      737              163
      Loss on write-off of fixed assets,net              347             --
      Changes in operating assets and
        liabilities -
          Accounts receivable                            633               47
          Inventories                                    427             (197)
          Prepaid expenses and other
            assets                                       166             (189)
          Accounts payable and accrued
            expenses                                    (880)           1,326
          Deferred income taxes                         --                (91)
          Supply agreement credits                      (472)            --
                                                    --------         --------
                  Net cash provided by
                    operating activities                 416            1,802
                                                    --------         --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Cash acquired from Royal Grip, Inc.                     18             --
  Purchases of equipment, net                           (776)            (843)
  Merger costs                                        (1,032)            --
  Acquisition of net assets of
    predecessor business                                --             (6,824)
                                                    --------         --------
                  Net cash used in investing
                    activities                        (1,790)          (7,667)
                                                    --------         --------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from sale of common stock                    --              1,000
  Proceeds from exercise of common stock
     options                                              14             --
  Proceeds from long-term debt                         1,000            3,750
  Borrowings under lines-of-credit, net                1,075            1,693
  Repayments of long-term debt and
    capital lease obligations                           (743)            (511)
                                                    --------         --------
                  Net cash provided
                    by financing activities            1,346            5,932
                                                    --------         --------

INCREASE (DECREASE) IN CASH                              (28)              67

CASH, beginning of period                                 28             --
                                                    --------         --------
CASH, end of period                                 $   --           $     67
                                                    ========         ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
  INFORMATION:
    Cash paid during the period for -
      Interest                                      $    473         $    306
                                                    ========         ========
      Income taxes                                  $     60         $    742
                                                    ========         ========

    Non-cash transaction -
      Issuance of common stock and options
        and warrants to purchase common
        stock for acquisition of RG                 $ 12,995         $   --
                                                    ========         ========
</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 that would be expected for the full year.

         Reclassifications -

         Certain prior year amounts have been reclassified to conform to current
         year presentation.

         Principles of consolidation -

         The accompanying consolidated financial statements include Royal
         Precision, Inc. (RPI)(formerly FM Precision Golf Corp.) and its three
         wholly-owned subsidiaries, FM Precision Golf Manufacturing Corp. (FMP),
         FM Precision Golf Sales Corp. (FM Sales) and Royal Grip, Inc (formerly
         FMPSUB, Inc.)and its wholly owned subsidiary, Roxxi, Inc. (collectively
         RG). Results of operations for RG are included in the Company's
         Condensed Consolidated Statement of Operations since August 29, 1997,
         the effective date of the merger (see Note 2). Accordingly, RG's
         operations from August 29,1997 are included in the three and nine-month
         periods ended February 28, 1998 and RG's operations are not included in
         the three and nine-month periods ended February 28, 1997. 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.

         New accounting standard -

         In June 1997, the Financial Accounting Standards Board adopted a new
         standard on reporting comprehensive income, which established standards
         for reporting and display of comprehensive income (net income (loss)
         together with other non-owner changes in equity) and its components in
         a full set of general purpose financial statements. The standard will
         become effective for the Company in fiscal 1999 and will require
         reclassification of comparative financial statements for prior years.

                                       -5-
<PAGE>   6
2.       Business Combination:

         On May 14, 1997, RPI entered into an Agreement and Plan of Merger with
         RG. 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 RG (the Merger). 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 was 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 $13,883,000 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 $10,763,000, (ii) cash of $122 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 $2,232,000, which amount was determined
         using the Black Scholes Valuation Model, and (iv) RPI Merger expenses
         of $888,000 (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 $608,000 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 (in thousands):


<TABLE>
<S>                                                                 <C>
                 Cash                                               $      18
                 Accounts receivable                                    1,293
                 Inventories                                              710
                 Net investment in lease                                2,981
                 Prepaid expenses and other current assets                 68
                 Property and equipment                                 1,670
                 Goodwill                                              10,418
                 Accounts payable and accrued expenses                 (1,501)
                 Supply agreement credits                                (472)
                 Debt and capital lease obligations                    (1,166)
                 Other, net                                              (136)
                                                                    ---------
                                                                    $  13,883
                                                                    =========
</TABLE>

                                       -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.

         RPI is amortizing the goodwill related to the RG acquisition over 20
         years and evaluates the asset for impairment by reviewing the estimated
         future cash flows of the acquired operations on a quarterly basis.

         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.

         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 to
         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 50,000
         shares of RG common stock to an investment banker. The warrants were
         exercisable at a price of $.02 per share. Such warrants were exercised
         in September 1997 for $1,000.

         RPI recorded a charge of $765,000 in the nine months ended February 28,
         1998 for nonrecurring Merger related expenses. The components of this
         expense are $375,000 related to a computer software installation that
         was abandoned as a result of the Merger, $100,000 related to certain
         headwear related contracts, $140,000 of relocation expenses and
         $150,000 of severance as a result of organizational changes in
         connection with the Merger.

3.       In February 1997, the Financial Accounting Standards Board adopted a
         new standard (SFAS No. 128) on accounting for earnings per share (EPS).
         This new standard replaced the presentation of primary EPS with a
         presentation of basic EPS and changed the fully diluted terminology to
         diluted. It also requires dual presentation of basic and diluted EPS on
         the face of the income statement. In February 1998, the SEC issued
         Staff Accounting Bulletin (SAB) No. 98, which, among other things,
         addresses the impact of cheap stock in earnings per share computations.
         All weighted average share and net income (loss) per share amounts for
         all periods have been presented, and where necessary, restated to
         conform to the SFAS No. 128 and SAB No. 98 requirements.

         Basic earnings per common share are based on the average number of
         common shares outstanding. Diluted earnings per common share assumes,
         in addition to the above, a dilutive effect of common share equivalents
         during the year. Stock options, if outstanding, were antidilutive in
         all periods presented. Therefore, basic and diluted net income (loss)
         per share amounts are computed using the actual weighted average shares
         of common stock outstanding.

                                       -7-
<PAGE>   8

4.       Inventories:

         Inventories as of February 28, 1998 and May 31, 1997 consisted of the
         following (in thousands):

<TABLE>
<CAPTION>
                                                February 28, 1998     May 31, 1997
                                                     ------              ------
<S>                                             <C>                   <C>
       Raw materials                                 $1,163              $1,137
       Work-in-process                                1,238                 965
       Finished goods                                 1,091               1,107
       LIFO Reserve                                     284                 284
                                                     ------              ------
                                                     $3,776              $3,493
                                                     ======              ======
</TABLE>

         Included in the inventory balance as of February 28, 1998 are reserves
         of $1.0 million.


5.       Supply Agreement Credits:

         In December 1996, RG outsourced all of its production of non-cord grips
         to Acushnet Rubber Company (Acushnet). During the first calendar
         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. The Company
         determined that the credits would not be earned back by Acushnet, and
         therefore recorded $472,393 during the second fiscal quarter of 1998 as
         a reduction in cost of sales. The credits were not earned back by
         Acushnet due to RG's purchase orders in the second half of calendar
         1997 being below levels which would allow Acushnet to earn back the
         credits. A difference of opinion has arisen between the parties as to
         the timing of payments for certain grips that have been manufactured by
         Acushnet. RG has offered a payment schedule for certain grips, which
         offer was rejected. In response to a formal claim for payment, RG has
         denied any legal liability but has offered to negotiate this issue
         along with other issues concerning damages RG incurred during the
         transition to Acushnet. RG anticipates that this issue will be resolved
         between the parties or will be settled through the dispute resolution
         procedures provided in the Acushnet Agreement. However, there can be no
         assurances that the resolution procedures will provide a mutually
         satisfactory result.

6.       Long-Term Debt:

         FMP has a credit facility that includes a revolving line-of-credit and
         term loan. As of February 28, 1998, FMP had $2.5 million outstanding on
         its revolving line-of-credit and $3.8 outstanding on its term loan.
         During fiscal 1998, FMP has entered into several amendments to the
         credit facility with its lender. The effect of the amendments was to
         provide for an additional advance of $250,000 which amount was due and
         repaid on January 16, 1998, provide for an additional advance of
         $350,000 which amount is due and is repayable in three installments
         during May 1998, reduce the interest rate on the term loan and
         revolving credit portions of the credit facility to the prime rate plus
         1.25% and the prime rate plus 1.0%, respectively, advance an additional
         $1.0 million on the term loan (used to pay down the revolver) and
         revise the financial covenants for FMP effective December 31, 1997. In
         addition, the amendments also eliminated all personal guarantees and
         extended the maturity date from May 31, 1999 to June 2, 2000; however,
         the lender may extend the maturity to May 31, 2001. The Term Loan is
         due in monthly principal installments of $69,712 commencing March 1997
         through June 2, 2000 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. FMP is in compliance with all debt
         covenants at February 28, 1998. Based on eligible receivables and
         inventory as of February 28, 1998, FMP had $1.6 million available for
         additional borrowings.

                                       -8-
<PAGE>   9
         In February 1997, RG entered into a credit facility with a commercial
         bank consisting of a revolver of $1.75 million and a term loan of
         $700,000. The credit facility matures February 10, 2000 and contains
         net worth requirements, prohibits dividend payments and limits capital
         expenditures. Effective January 1, 1998, the credit facility bears
         interest at the prime rate plus 4%. The interest rate increased in
         accordance with the agreement based on the amount of RG's loss for the
         year ended December 31, 1997. RG is in compliance with all debt
         covenants at February 28, 1998. RG is currently renegotiating its
         financial covenants for periods after March 31, 1998 to conform with
         RG's fiscal reporting periods as a result of the Merger. As of February
         28, 1997, RG had $0.5 million outstanding on its revolving
         line-of-credit, $0.6 million outstanding on its term loan and $352,000
         available for additional borrowings.

                                       -9-
<PAGE>   10

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. 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 "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., Royal Grip, Inc. (formerly known as
         FMPSUB,Inc.) and its wholly owned subsidiary, Roxxi, Inc. (collectively
         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.

         Results of operations for RG are included in the Company's Condensed
         Consolidated Statement of Operations since August 29, 1997, the
         effective date of the merger (See Note 2). Accordingly, RG's operations
         from August 29, 1997, are included in the three and nine-month periods
         ended February 28, 1998, but are not included in the three and
         nine-month periods ended February 28, 1997.

         FMP is a manufacturer and distributor of golf shafts that are sold to
         original equipment manufacturers (OEMs) and to distributors and
         retailers for use in the replacement market. The majority of FMP's
         sales are to OEM's. FMP also sells golf shafts in foreign markets
         including Japan, Canada and the United Kingdom.

         RG designs and distributes golf club grips and manufactures and
         distributes athletic headwear. RG's products are sold primarily
         throughout the United States, Japan and the United Kingdom. The
         majority of RG's grip sales are to the replacement market. In December
         1996, RG outsourced the manufacturing of its non-cord grips (see Note 4
         of Notes to Condensed Consolidated Financial Statements).

                                      -10-
<PAGE>   11
         Three and Nine Months Ended February 28, 1998 Compared to the Three and
         Nine Months Ended February 28, 1997.

         Net Sales. Net sales for the three months ended February 28, 1998
         (third quarter) were $7.2 million, an increase of 41.2% over net sales
         of $5.1 million for the corresponding period in 1997. For the nine
         months ended February 28, 1998, net sales were $19.0 million, an
         increase of 21.2% over net sales of $15.7 million for the same period
         in 1997. The increase in net sales of $2.1 million and $3.3 million for
         the three and nine months ended February 28, 1998, respectively, as
         compared to the same periods of the prior year is primarily
         attributable to the inclusion of $1.9 million and $4.2 million of net
         sales of golf club grips and headwear by RG, respectively. Net sales of
         golf shaft sales for the three months ended February 28, 1998 increased
         by $0.2 million or 4.0%. Partially offsetting the inclusion of RG's
         sales for the nine months ended February 28, 1998 was a $0.9 million,
         or 5.7%, decline in golf shaft sales. The increase in shaft sales for
         the quarter ended February 28, 1998 as compared to the same quarter
         last year is primarily attributable to an increase in commercial grade
         shaft sales of $436,000 partially offset by a decrease in Rifle shaft
         sales of $305,000. The reduction in shaft sales for the nine months
         ended February 28, 1998 as compared to the same period last year is
         primarily the result of lower Rifle shaft sales. Sales of the Rifle
         shaft decreased by $2.4 million for the nine months ended February 28,
         1998, as compared to the same period last year. This decrease was
         offset by an increase of $1.5 million in sales of other steel shafts
         for the nine months ended February 28, 1997, compared to the same
         period last year. The reduction in Rifle shaft sales is due to reduced
         sales to the international markets.

         Cost of Goods Sold. Cost of goods sold for the three months ended
         February 28, 1998 was $5.2 million, an increase of 21.0% over cost of
         goods sold of $4.3 million for the same period in 1997. For the nine
         months ended February 28, 1998, cost of goods sold was $13.3 million,
         an increase of 17.4% over cost of goods sold of $11.3 million for the
         same period in 1997. The increase in cost of goods sold of $0.9 million
         and $2.0 million for the three and nine months ended February 28, 1998,
         respectively, as compared to the same periods of the prior year is
         attributable to the inclusion of $1.3 million and $2.4 million,
         respectively, of cost of goods sold for RG golf club grips and
         headwear. Partially offsetting the inclusion of RG's cost of goods sold
         was a decrease of $0.4 million and $0.5 million in golf shaft cost of
         sales for the three and nine months ended February 28, 1998,
         respectively, as compared to the same periods last year. The decrease
         in cost of goods sold for the golf shaft business is primarily the
         result of a change in mix to lower cost commercial grade shafts.

         As a percentage of sales, the gross profit on shaft sales increased
         from 15.4% to 25.8% and decreased from 27.9% to 26.6% for the three and
         nine months ended February 28, 1998, respectively as compared to the
         same periods in 1997. This increase in gross profit percentage for the
         quarter ended February 28, 1998 is primarily the result of an inventory
         writeoff of $197,000 in the three months ended February 28, 1997 and a
         positive change in manufacturing spending variance of $166,000 in the
         three months ended February 28, 1998 as compared to the same quarter
         last year.

         RG's gross profit and gross profit percentage was positively impacted
         during the nine months ended February 28, 1998 as a result of RG
         recording a $472,000 reduction in cost of sales related to supply
         agreement credits. See Note 4 of Notes to Condensed Consolidated
         Financial Statements.

                                      -11-
<PAGE>   12
         Selling, General and Administrative Expenses. Selling, general and
         administrative expenses for the three months ended February 28, 1998
         were $2.2 million, an increase of 146.1% over selling, general and
         administrative expenses of $0.9 million for the same period last year.
         For the nine months ended February 28, 1998, selling, general and
         administrative expenses were $5.5 million, an increase of 101.5% over
         selling, general and administrative expenses of $2.7 million for the
         same period last year. The increase in selling, general and
         administrative expenses of $1.3 million and $2.8 million for the three
         and nine months ended February 28, 1998, respectively, is primarily
         attributable to the inclusion of $0.8 million and $1.9 million of
         selling, general and administrative expenses from RG for the periods
         reported. In addition, the Company amortized $130,000 and $260,000 of
         goodwill during the three and nine months ended February 28, 1998 as a
         result of the Merger. In addition, advertising expenses for FMP
         increased $90,000 and $156,000 for the three and nine months ended
         February 28, 1998 as compared to the same periods last year.

         Nonrecurring Merger Related Expenses. Nonrecurring Merger related
         expenses for the three and nine months ended February 28, 1997 were
         $90,000 and $765,000 as compared to $0 for the corresponding periods
         last year. The primary components of this expense are $375,000 related
         to a computer software installation that was abandoned as a result of
         the Merger, $100,000 related to certain headwear related contracts,
         $140,000 of relocation expenses and $150,000 of severance as a result
         of organizational changes in connection with the Merger.

         Interest Expense and Interest Income. Interest expense for the three
         months ended February 28, 1998 and 1997 was $191,000 compared to
         $126,000 and for the nine months ended February 28, 1998 and 1997 was
         $484,000 compared to $345,000, respectively. The increase in interest
         expense is primarily attributable to the inclusion of interest expense
         of RG of $37,000 and $73,000 for the three and nine month periods
         reported, respectively. Additionally, loan balances on FMP's revolving
         credit facility were higher during the three and nine months ended
         February 28, 1998 as compared to the same periods in 1997.

         Interest income for the three and nine months ended February 28, 1998
         was $56,000 and $113,000, respectively, compared to $0 for the same
         periods last year. This increase is due to the inclusion of interest
         income from RG's capital lease receivable in the 1998 periods.

         Income taxes. Income taxes for the three months ended February 28, 1998
         and 1997 were a benefit of $184,000 and $106,000, or a tax rate of 40%
         and 44%, respectively. Income taxes for the nine months ended February
         28, 1998 and February 28, 1997 were a benefit of $361,000, or a tax
         rate of 40%, and a provision of $553,000 or a tax rate of 43%. The
         reduction in the effective rate is due to the loss in the 1998 period.


         Liquidity and capital resources. At February 28, 1998, RPI had working
         capital of $530,000 and a current ratio of 1.1 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 in working capital is primarily due to an
         increase in the current portion of long-term debt and capital lease
         obligations of $1.7 million from May 31, 1997 to February 28, 1998
         partially as a result of the costs related to the Merger and the
         inclusion of RG's debt in the February 28, 1998 balances.

         See Note 6 of Notes to Condensed Consolidated Financial Statements for
         a description of the terms of RPI's credit facilities.

         Currently RG does not own the inventory manufactured by Acushnet under
         its Manufacturing and Supply Agreement. Acushnet invoices RG when
         shipment is made to the ultimate customer. See Note 5 of Notes to
         Condensed Consolidated Financial Statements relating to the purchase of
         grip inventory.

                                      -12-
<PAGE>   13
         At April 2, 1998, FMP had $1.5 million available for borrowing under
         its revolving line of credit after giving effect to the amendments to
         its credit facility and RG had $267,000 available for borrowing under
         its revolver. The Company believes that it has enough credit
         availability to finance its operations over the next twelve months.

         During the nine months ended February 28, 1998, net cash provided by
         operating activities was $412,000 which primarily resulted from
         decreases in accounts receivable and inventory of $1.1 million offset
         by a decrease in accounts payable of $880,000.

         RPI used $1.8 million in investing activities during the nine months
         ended February 28, 1998, primarily due to $776,000 used to purchase
         additional property plant and equipment during such period and Merger
         costs of $1,015,000. RPI estimates that capital expenditures for the
         year ended May 31, 1998 will be approximately $1.1 million for FMP and
         $300,000 for the period from acquisition to May 31, 1998 for RG.

         Net cash provided by financing activities for the nine months ended
         February 28, 1998, was $1.3 million primarily due to the funding of
         $1.0 million on FMP's term loan and $1.1 million of net borrowings
         under FMP and RG's revolvers offset by repayments on long-term debt and
         capital lease obligations of $743,000.


         Business Environment and Future Results.

         Reliance on Third Party Suppliers. RG currently purchases, and for an
         indefinite period of time intends to purchase, 100% of its entire
         supply of non-cord grips from Acushnet. During the transition to
         Acushnet, Acushnet experienced delays and quality problems in the
         production of grips, which adversely affected RG's customer
         relationships and results of operations. Net sales of golf club grips
         for the nine months ended February 28, 1998 and 1997 were $6.2 million
         and $4.4 million, respectively. The decrease in net sales of $1.8
         million is due to problems that arose during the transition. See note 1
         of Notes to Condensed Consolidated Financial Statements for an
         explanation of why nine month comparative information for RG is not
         included in the financial statements.

         Under the amended Manufacturing and Supply Agreement, either Acushnet
         or RG may voluntarily terminate the agreement upon payment of a
         specified termination fee, among other things. If Acushnet elects to
         utilize such termination rights, RG currently has no back-up source of
         supply, and any transition to alternative suppliers or the resumption
         of in-house manufacturing operations by RG may result in production
         delays, the loss of sales and key customers which would materially
         affect RG's financial condition and results of operations. However, the
         contract requires Acushnet to provide RG with 10 months notice to
         terminate the contract. Such ten-month notice may be given by Acushnet
         on or after June 30, 1998. Although RG believes that it has certain
         remedies available to it under its agreement with Acushnet arising out
         of a voluntary termination of the agreement by Acushnet, including the
         payment of termination fees and expenses, there can be no assurance
         that RG would be able to successfully pursue such remedies or that such
         remedies would adequately compensate RG for any losses incurred by it.

         A dispute has arisen as to payment for certain grips that have been
         manufactured by Acushnet at the request of RG. While RG denies any
         contractual obligation to pay, RG has offered to pay for certain grips
         over time which offer was rejected. In response to a formal claim for
         payment RG has denied any legal liability but has offered to negotiate
         this issue along with other issues concerning damages RG incurred
         during the transition to Acushnet. RG anticipates that this issue will
         be resolved between the parties or will be settled through the dispute
         resolution procedures provided in the Acushnet Agreement. However,
         there can be no assurances that the resolution procedures will provide
         a mutually satisfactory result.

                                      -13-
<PAGE>   14
PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.
         None

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.

6(a)     Exhibits

         (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).

                                      -14-
<PAGE>   15
         (10) Material Contracts

         Exhibit 10.3.11

         First Amendment to Financing Agreement dated January 29, 1997, between
         Star Bank, National Association, FM Precision Golf Manufacturing Corp.
         and FM Precision Golf Sales Corp. (incorporated by reference to Exhibit
         10.3.11 of the registrant's quarterly report on Form 10-QSB for the
         period ended November 29, 1997 (the "November 1997 Form 10-QSB");
         commission file no. 0-71735).


         Exhibit 10.3.12

         Second Amendment to Financing Agreement dated August 20, 1997, between
         Star Bank, National Association, FM Precision Golf Manufacturing Corp.
         and FM Precision Golf Sales Corp. (incorporated by reference to Exhibit
         10.3.12 of the November 1997 Form 10-QSB).

         Exhibit 10.3.13

         Third Amendment to Financing Agreement dated November 7, 1997, between
         Star Bank, National Association, FM Precision Golf Manufacturing Corp.
         and FM Precision Golf Sales Corp. (incorporated by reference to Exhibit
         10.3.13 of the November 1997 Form 10-QSB).

         Exhibit 10.3.14

         Fourth Amendment to Financing Agreement dated January 6, 1998, between
         Star Bank, National Association, FM Precision Golf Manufacturing Corp.
         and FM Precision Golf Sales Corp. (incorporated by reference to Exhibit
         10.3.14 of the November 1997 Form 10-QSB).

         Exhibit 10.3.15

         Fifth Amendment to Financing Agreement dated January 13, 1998, between
         Star Bank, National Association, FM Precision Golf Manufacturing Corp.
         and FM Precision Golf Sales Corp.

         Exhibit 10.3.16

         Sixth Amendment to Financing Agreement dated January 21, 1998, between
         Star Bank, National Association, FM Precision Golf Manufacturing Corp.
         and FM Precision Golf Sales Corp.

         Exhibit 10.3.17

         Seventh Amendment to Financing Agreement dated March 17, 1998, between
         Star Bank, National Association, FM Precision Golf Manufacturing Corp.
         and FM Precision Golf Sales Corp.

         Exhibit 27

         Financial Data Schedule (submitted electronically for SEC Information
         only)

                                      -15-
<PAGE>   16
6(b)     Reports on Form 8-K

         No reports on Form 8-K were filed by the Registrant during the quarter
         ended February 28, 1998.

                                      -16-
<PAGE>   17
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.
                                                    (Registrant)





Dated: April 13, 1998               By: /s/ Christopher A. Johnston
                                       --------------------------
                                       Christopher A. Johnston
                                       President and Chief Executive Officer
                                       (principal executive officer)

                                    By: /s/ Thomas A. Schneider
                                       --------------------------
                                        Thomas A. Schneider
                                        Chief Financial Officer
                                        (principal financial and accounting
                                          officer)

                                      -17-
<PAGE>   18
                                  Exhibit Index

<TABLE>
<CAPTION>
                                                                         Page Number
 Exhibit
<S>                                                                      <C>
(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 10.3.11

First Amendment to Financing Agreement dated January 29, 1997,
between Star Bank, National Association, FM Precision Golf                *
Manufacturing Corp. and FM Precision Golf Sales Corp.

Exhibit 10.3.12

Second Amendment to Financing Agreement dated August 20, 1997,
between Star Bank, National Association, FM Precision Golf                *
Manufacturing Corp. and FM Precision Golf Sales Corp.

Exhibit 10.3.13

Third Amendment to Financing Agreement dated November 7, 1997,
between Star Bank, National Association, FM Precision Golf                *
Manufacturing Corp. and FM Precision Golf Sales Corp.

Exhibit 10.3.14

Fourth Amendment to Financing Agreement dated January 6, 1998,            *
between Star Bank, National Association, FM Precision Golf
Manufacturing Corp. and FM Precision Golf Sales Corp.

Exhibit 10.3.15

Fifth Amendment to Financing Agreement dated January 13, 1998,            19
between Star Bank, National Association, FM Precision Golf
Manufacturing Corp. and FM Precision Golf Sales Corp.

Exhibit 10.3.16

Sixth Amendment to Financing Agreement dated January 21, 1998,            22
between Star Bank, National Association, FM Precision Golf
Manufacturing Corp. and FM Precision Golf Sales Corp.

Exhibit 10.3.17

Seventh Amendment to Financing Agreement dated March 17, 1998,            26
between Star Bank, National Association, FM Precision Golf
Manufacturing Corp. and FM Precision Golf Sales Corp.

*Incorporated by reference
</TABLE>

                                      -18-