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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) March 30, 1999
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Royal Precision, Inc.
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-22889 06-1453896
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
15170 North Hayden Road, Suite 1, Scottsdale Arizona 85260
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (602) 627-0200
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(Former Name or Former Address, if Changed Since Last Report)
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ROYAL PRECISION, INC.
FORM 8-K
CURRENT REPORT
Item 5. Other Events.
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On March 30, 1999, the Registrant issued a press release announcing the
termination of its supply agreement with Acushnet Rubber Company, the
Registrant's primary golf club grip supplier.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(a) Financial Statements of Business Acquired.
None.
(b) Pro Forma Financial Information.
None
(c) Exhibits.
(10) MATERIAL CONTRACTS
Exhibit 10.1. Registrant's press release dated March 30, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ROYAL PRECISION, INC.
Date: April 6, 1999 By: /s/ Thomas A. Schneider
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Thomas A. Schneider, President and
Treasurer
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Exhibit 2.1
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ROYAL PRECISION TO RECEIVE $2.5 MILLION FROM ACUSHNET
RUBBER CO. TO TERMINATE GOLF GRIP SUPPLY AGREEMENT
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FOR IMMEDIATE RELEASE
CONTACT: THOMAS A. SCHNEIDER, President and Chief Operating Officer
Royal Precision, Inc. (602)-627-0200
RCG Capital Markets Group, Inc. (602) 675-0400
Retail: JIM ESTRADA, BRETT MAAS
Analysts/Institutional: JOE DORAME
Media: JEFF STANLIS
(MARCH 30, 1999) - SCOTTSDALE, Arizona - Royal Precision, Inc. (Nasdaq: RIFL),
the manufacturer and marketer of the Rifle(TM) shaft, among the most widely-used
shafts by professional golfers on the PGA Tour, today announced receipt of a
notice of contract termination from Acushnet Rubber Company ("Acushnet") as its
primary golf club grip manufacturer and supplier. Royal Grip, Inc. and Acushnet
entered into a manufacturing and supply agreement December 21, 1996. In the
notice of termination, Acushnet has agreed to pay Royal Grip a $2.5 million
termination fee and to provide ten months of grip production during the
transition period. In addition, Royal Grip will regain its manufacturing
equipment resulting in the extinguishment of Acushnet's capital equipment lease
obligation. At February 28, 1999, the Company's capital equipment lease
receivable was $2.7 million. The Company has yet to determine what write-down,
if any, it will take in connection with the returned equipment. Royal Grip's
revenue for the twelve months ended January 31, 1999 was $4.2 million, or 16%,
of Royal Precision's total revenue.
Thomas A. Schneider, president and chief operating officer, commented, "We are
currently in discussions with a number of grip manufacturers that we believe
will maintain Royal Grip's high standard of product quality and will facilitate
a smooth transition. We expect to build grip inventory during the 10-month
transition period with Acushnet."
Royal Precision, Inc. is a leading designer and manufacturer of high-quality
innovative golf shafts, featuring the Company's "Frequency Coefficient Matching"
technology, or "FCM," designed to provide consistent flex characteristics to all
the clubs in a golfer's bag. Royal Precision, Inc. is also a designer and
distributor of golf club grips offering a wide variety of standard and custom
models, all of which feature a distinctive feel and appearance and durability.
This press release includes statements which may constitute forward looking
statements made pursuant so the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. These statements are subject to risks and
uncertainties that could cause actual results to differ materially from the
forward looking statements including, but not limited to, risks related to the
Company's dependence on discretionary consumer spending and original equipment
manufacturers, the Company's limited operating history, new product
introduction, competition, seasonality of sales, fluctuations in operating
results, product protection, intellectual property rights, supply delays, use of
third party suppliers, customer concentration and other factors detailed in the
Company's Securities and Exchange Commission filings.
