<PAGE>   1
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                   FORM 10-QSB

(Mark One)

(X)      Quarterly report pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934

                  For the quarterly period ended March 31, 1999

( )      For the transition period from __________ to __________


Commission file number: 000-22855



                       NEW DIRECTIONS MANUFACTURING, INC.
        (Exact name of small business issuer as specified in its charter)


             NEVADA                                      86-0671974
(State or other Jurisdiction of             (I.R.S. Employer Identification No.)
Incorporation or Organization)


                 2940 W. WILLETTA STREET, PHOENIX, ARIZONA 85009
               (Address of principal executive offices) (Zip Code)


                                 (602) 352-1165
                (Issuer's telephone number, including area code)




         Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
                                 Yes  X  No
                                     ---    ---

         The issuer had 5,052,270 shares of common stock outstanding
as of March 31, 1999.

            Transitional Small Business Disclosure Format (check one)


                                 Yes     No  X
                                     ---    ---
<PAGE>   2
                       NEW DIRECTIONS MANUFACTURING, INC.

                                      INDEX




PART I.            FINANCIAL INFORMATION


                                                                        PAGE NO.

       Item 1. Financial Statements

               Comparative Unaudited Consolidated Balance
               Sheets as of March 31, 1999 and June 30, 1998                   3

               Comparative Unaudited Consolidated Statements of
               Operations for the Three Months and Nine Months
               Ended March 31, 1999 and 1998                                  4

               Comparative Unaudited Consolidated Statements of
               Cash Flow for the Nine Months Ended March 31,
               1999 and 1998                                                 5-6

               Notes to the Unaudited Consolidated Financial Statements        7

       Item 2. Management's Discussion and Analysis of
               Financial Condition and Results of Operations                 8-9



PART II.            OTHER INFORMATION


       Item 1. Legal Proceedings                                              10

       Item 2. Changes in Securities and Use of Proceeds                      10

       Item 3. Defaults Upon Senior Securities                                10

       Item 4. Submission of Matters to a Vote of Security Holders            10

       Item 5. Other Information                                              10

       Item 6. Exhibits and Reports on Form 8-K
               (a) Exhibits                                                   10
               (b) Reports on Form 8-K                                        10
<PAGE>   3
                         PART I - FINANCIAL INFORMATION
Item 1
                       NEW DIRECTIONS MANUFACTURING, INC.
                      UNAUDITED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
ASSETS                                                               March 31, 1999      June 30, 1998
------                                                               --------------      -------------
<S>                                                                  <C>                 <C>        
Current Assets:
         Cash and cash equivalents                                    $    26,539         $   232,203
         Accounts receivable, Net                                       1,057,922             564,565
         Inventories                                                      391,902             287,893
         Other                                                             64,854              29,361
                                                                      -----------         -----------
                 Total Current Assets                                   1,541,217           1,114,022
                                                                      -----------         -----------

Property, Plant and Equipment, Net                                        472,646             474,915
                                                                      -----------         -----------

Other Assets:
         Covenant not-to-compete, Net                                     440,003             560,000
         Goodwill, Net                                                    560,164             584,734
         Deferred tax asset                                                59,000                   0
         Other                                                             16,936              16,926
                                                                      -----------         -----------

                 Total Assets                                         $ 3,089,966         $ 2,750,597
                                                                      ===========         ===========


LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
         Accounts payable                                             $   418,513         $   168,455
         Commissions payable                                               17,480              16,932
         Accrued expenses                                                  46,091              70,545
         Income taxes payable                                                 300              20,000
         Short-term debt                                                  435,698                   0
         Current portion long-term debt                                   211,508             199,231
         Current portion capital lease obligations                         26,744              26,132
                                                                      -----------         -----------
                 Total Current Liabilities                              1,156,334             501,295
                                                                      -----------         -----------

Long-Term Liabilities:
         Long-term debt, less current portion                             169,735             329,936
         Deferred income taxes                                                  0              17,000
         Capital lease obligations, less current portion                   56,745              77,071
                                                                      -----------         -----------
                 Total Long-Term Liabilities                              226,480             424,007
                                                                      -----------         -----------

Commitments and Contingencies  (See Notes)                                      0                   0
                                                                      -----------         -----------

Stockholders' Equity:
         Common stock, $.001 par value, 25,000,000 shares
           authorized, 5,052,270 shares issued and outstanding              5,052               5,052
         Additional paid in capital                                     1,922,489           1,923,575
         Accumulated deficit                                             (220,389)           (103,332)
                                                                      -----------         -----------
                 Total Stockholders' Equity                             1,707,152           1,825,295
                                                                      -----------         -----------

                 Total Liabilities and Stockholders' Equity           $ 3,089,966         $ 2,750,597
                                                                      ===========         ===========
</TABLE>


                                        3
<PAGE>   4
                       NEW DIRECTIONS MANUFACTURING, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS



<TABLE>
<CAPTION>
                                             Three Months        Three Months        Nine Months         Nine Months
                                                Ended               Ended               Ended               Ended
                                            Mar. 31, 1999       Mar. 31, 1998       Mar. 31, 1999       Mar. 31, 1998
                                            -------------       -------------       -------------       -------------
<S>                                         <C>                 <C>                 <C>                 <C>        
Net Sales                                    $ 1,821,700         $ 1,843,344         $ 4,821,121         $ 5,326,482

Cost of Sales                                  1,613,980           1,598,548           4,270,663           4,618,350
                                             -----------         -----------         -----------         -----------

        Gross Profit                             207,720             244,796             550,458             708,132
                                             -----------         -----------         -----------         -----------


Operating Expenses:
        Selling and marketing                     29,406              28,640              98,532              82,546
        Administrative and general               188,719             192,742             603,911             580,549
                                             -----------         -----------         -----------         -----------
             Total Operating Expenses            218,125             221,382             702,443             663,095
                                             -----------         -----------         -----------         -----------

Operating Income (Loss)                          (10,405)             23,414            (151,985)             45,037
                                             -----------         -----------         -----------         -----------


Interest Income (Expense):
        Interest income                                0               3,420               2,345              13,050
        Interest expense                         (15,974)            (14,809)            (43,361)            (46,762)
                                             -----------         -----------         -----------         -----------
             Net Interest Expense                (15,974)            (11,389)            (41,016)            (33,712)
                                             -----------         -----------         -----------         -----------


Income (Loss) Before Taxes                       (26,379)             12,025            (193,001)             11,325

        Taxes on Income (Recovery)                (8,944)              4,000             (75,944)             11,600
                                             -----------         -----------         -----------         -----------

Net Income (Loss)                            $   (17,435)        $     8,025         $  (117,057)        $      (275)
                                             ===========         ===========         ===========         ===========


Earnings (Loss) Per Share                    $     (0.00)        $      0.00         $     (0.02)        $     (0.00)
                                             ===========         ===========         ===========         ===========

Weighted Average Number of
   Common Shares Outstanding                   5,052,270           4,989,675           5,052,270           4,989,675
                                             ===========         ===========         ===========         ===========
</TABLE>


                                        4
<PAGE>   5
                       NEW DIRECTIONS MANUFACTURING, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW



<TABLE>
<CAPTION>
                                                                 Nine Months       Nine Months
                                                                    Ended             Ended
                                                               March 31, 1999    March 31, 1998
                                                               --------------    --------------
<S>                                                            <C>               <C>       
Cash flows from operating activities:
        Net income (loss)                                        $(117,057)        $    (275)
        Adjustments to reconcile net loss to
          cash used for operating activities:
              Amortization of covenant-not-to-compete              119,997           119,997
              Amortization of goodwill                              24,570            26,950
              Depreciation                                          61,738            47,181
              Deferred income taxes                                (76,000)          (42,900)
              Increase in accounts receivable                     (493,358)         (123,756)
              Increase in inventory                               (104,009)          (87,449)
              Increase in other assets                             (35,502)           (9,894)
              Increase (decrease) in accounts payable              250,058           (14,259)
              Increase (decrease) in accrued expenses              (24,454)           29,693
              Increase (decrease) in commissions payable               548           (13,258)
              Increase (decrease) in income taxes payable          (19,700)           49,200
                                                                 ---------         ---------

Net cash used for operating activities                            (413,169)          (18,770)
                                                                 ---------         ---------


Cash flows for investing activities:
        Purchase of property and equipment                         (59,469)         (104,657)
                                                                 ---------         ---------

Net cash used for investing activities                             (59,469)         (104,657)
                                                                 ---------         ---------


Cash flows for financing activities:
        Advance on line of credit                                  435,698                 0
        Repayment of debt                                         (147,924)         (136,841)
        Payment of capital lease obligations                       (19,714)          (32,925)
        Proceeds from capital stock, net                            (1,086)            8,275
                                                                 ---------         ---------

Net cash provided by (used for) financing activities               266,974          (161,491)
                                                                 ---------         ---------

Net decrease in cash and cash equivalents                         (205,664)         (284,918)

Cash and cash equivalents, beginning of period                     232,203           570,484
                                                                 ---------         ---------

Cash and cash equivalents, end of period                         $  26,539         $ 285,566
                                                                 =========         =========
</TABLE>


                                        5
<PAGE>   6
                       NEW DIRECTIONS MANUFACTURING, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW



<TABLE>
<CAPTION>
                                                            Nine Months        Nine Months
                                                               Ended              Ended
                                                          March 31, 1999     March 31, 1998
                                                          --------------     --------------
<S>                                                       <C>                <C>    
Supplementary Disclosure of Cash Flow Information

        Cash paid during the period for interest              $43,361            $46,762
                                                              =======            =======
                                                           
        Cash paid for income taxes                            $ 4,700            $     0
                                                              =======            =======
</TABLE>


Summary of Non-cash Investing and Financing Activities

         1)       During 1998, the Company acquired various equipment. A portion
                  of the equipment was financed by a capital lease obligation of
                  $98,400.


                                       6
<PAGE>   7
                       NEW DIRECTIONS MANUFACTURING, INC.

                         NOTES TO UNAUDITED CONSOLIDATED
                              FINANCIAL STATEMENTS


1.  PRESENTATION OF INTERIM INFORMATION

In the opinion of the management of New Directions Manufacturing, Inc. (the
"Company"), the accompanying unaudited financial statements include all normal
adjustments considered necessary to present fairly the financial position as of
March 31, 1999, the results of operations for the three months and nine months
ended March 31, 1999, and March 31, 1998, and cash flows for the nine months
ended March 31, 1999, and March 31, 1998. Interim results are not necessarily
indicative of results for a full year.

The financial statements and notes are presented as permitted by Form 10-QSB,
and do not contain certain information included in the Company's audited
financial statements and notes for the fiscal year ended June 30, 1998. Audited
financial statements for the fiscal year ended June 30, 1998 were filed with the
SEC as part of the Issuer's Form 10-KSB on September 15, 1998, and are
incorporated herein by reference. Copies of the 10-KSB may be obtained by faxing
the Company at (602) 352-1505 or may be viewed on-line via the SEC's EDGAR
database at www.sec.gov.


2. ADJUSTMENTS TO MARCH 31, 1998 FINANCIAL STATEMENTS

As described in Amendment No. 2 to our March 31, 1998 10-QSB, it was discovered
in taking our physical inventory in conjunction with our year-end audit that our
perpetual inventory system had errors in input and withdrawals. Due to this
discovery, prior financial statements, including the March 31, 1998 financial
statements presented herein, were adjusted to correct for these errors. Steps
have been taken to ensure the accuracy of this system in the future.


                                        7
<PAGE>   8
                         PART I - FINANCIAL INFORMATION
ITEM 2
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

THE COMPANY

New Directions Manufacturing Inc. ("Company") is a manufacturer of quality oak
furniture. The Company produces oak contemporary home furnishing items such as
television stands, stereo towers, entertainment centers, wall systems,
bookcases, and both adult and youth bedroom units. The Company sells its product
through retailers on both the East and West Coasts of the United States, and
Alaska, Hawaii, Puerto Rico, Canada, and the Bahamas. The Company includes New
Directions Manufacturing, Inc., a Nevada corporation, and its wholly owned
subsidiary, New Directions Manufacturing, Inc., an Arizona corporation, which
was founded in 1989.

RESULTS OF OPERATIONS

Three Months and Nine Months Ended March 31, 1999 as compared to the Three
Months and Nine Months Ended March 31, 1998

NET SALES

Net sales of $1,821,700 for the third quarter of fiscal 1999, which ended March
31, 1999, were less than the sales of the same quarter for the previous year of
$1,843,344 by $21,644 or 1.2%. Net sales of $4,821,121 for the nine months ended
March 31, 1999 were less than the sales of the same period for the previous year
of $5,326,482 by $505,361 or 9.5%. The third quarter and nine months sales
losses can largely be attributed to the loss of a major customer in July 1998,
which represented approximately 17% of our sales. In the third quarter, we have
been able to offset most of the loss of the major customer through adding new
customers and introducing additional products to the marketplace

COST OF SALES AND GROSS PROFIT

The gross profit was $207,720 or 11.4% in the quarter ending March 31, 1999 in
comparison with $244,796 or 13.3% for the same quarter the previous year. As a
percentage of sales, cost of sales was 88.6% compared to 86.7% during the same
aforementioned time periods. The gross profit was $550,458 or 11.4% in the nine
months ending March 31, 1999 in comparison with $708,132 or 13.3% for the same
period the previous year. As a percentage of sales, cost of sales was 88.6%
compared to 86.7% during the same aforementioned time periods. The decrease in
gross profit margin for both the quarter and nine-months was primarily due to an
increase in labor costs, higher depreciation expense, and an increase in
building lease costs.

OPERATING EXPENSES

Operating expenses were $218,125 or 12.0% of net sales during the quarter ending
March 31, 1999. This compares with $221,382 or 12.0% for the quarter ending
March 31, 1998. Operating expenses were $702,443 or 14.6% of net sales during
the nine months ending March 31, 1999. This compares with $663,095 or 12.4% for
the nine months ending March 31, 1998.


                                        8
<PAGE>   9
Operating expenses for the quarter ending March 31, 1999 decreased $3,257 or
1.5% compared to the same quarter in 1998. Operating expenses for the nine
months ending March 31, 1999 increased $39,348 or 5.9% compared to the same time
period in 1998. The difference was primarily due to an increase in
administrative payroll costs, insurance expense, and showroom expenses for both
the quarter and nine-month periods.

INTEREST

Net interest expense for the quarter ending March 31, 1999 increased $4,585 or
40.3% compared to the same quarter in 1998. Net interest expense for the nine
months ending March 31, 1999 increased $7,304 or 21.7% compared to the same time
period in 1998. The increase was primarily due to the reduction of interest
income in fiscal 1999 compared to fiscal 1998 and the use of our bank credit
line.

LIQUIDITY AND CAPITAL RESOURCES

The Company's primary cash requirements are for capital expenditures and
operating expenses, including labor costs, raw materials purchases, and funding
of accounts receivable. The Company's primary sources of cash have been from
operations and the use of our bank credit line.

Accounts receivable-net at March 31, 1999 increased $493,357 or 87.4% from June
30, 1998. This represents 34.3% of total assets at March 31, 1999 versus 20.5%
at June 30, 1998. The increase in the receivables is primarily due to
traditionally stronger sales during this period and does not represent a change
in uncollectible accounts. The Company has not recognized any significant bad
debt expense in any of the periods represented.

The Company's current plans require additional capital expenditures for the
remainder of the year of approximately $10,000. Year to date, the Company has
expended approximately $59,470. Our current credit line lender has informed us
that they do not intend to renew our $500,000 credit line. We are presently in
negotiations with other lenders to establish a $1,000,000 line of credit
supported by 80% of the eligible receivables. This new line will replace the
current bank credit line.

YEAR 2000 ISSUE

    The Company is addressing possible remedial efforts in connection with
computer software that could be affected by the Year 2000 problem. The Year 2000
problem is the result of computer programs being written using two digits rather
than four to define the applicable year. Any programs that have time-sensitive
software may recognize a date using "00" as the year 1900 rather than the year
2000. This could result in a major system failure or miscalculations.

    The Company is working on the Year 2000 compliance issue. The scope of the
project includes ensuring the compliance of all applications, operating systems,
and hardware. The Company is currently in the process of upgrading its computer
system hardware and software. The target date for completion of the project is
June 1, 1999 with an estimated total cost of approximately $6,000.

    The suppliers of substantially all of the Company's software have informed
the Company that all of those suppliers' software that is used by the Company is
Year 2000 compliant. The Company has no internally generated software. After
reasonable investigation, the Company has not yet identified any Year 2000
problems but will continue to monitor the issue. There can be no assurances,
however, that Year 2000 problems will not occur with respect to the Company's
computer systems. The Year 2000 problem may impact other entities with which the
Company transacts business, and the Company cannot predict the effect of the
Year 2000 problem on such entities. However, the Company has received
notification from a number of suppliers, vendors, and our payroll service that
their systems are currently Year 2000 compliant. Also, the Company is not
directly linked to any supplier or vendor by computer.


                                        9
<PAGE>   10
                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         As previously reported, on November 10, 1997, the Company was served
         with a Complaint, which alleged claims for strict liability and
         negligence in connection with an accident with a piece of furniture.
         This litigation was forwarded to the Company's insurance carrier who
         handled the defense of this claim on behalf of the Company. On March 5,
         1999, the Company and its insurance carrier entered into a settlement
         agreement with Plaintiff for an undisclosed amount fully releasing all
         parties from the litigation. Management of the Company believes that
         there are no other litigation matters pending or threatened against the
         Company.

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

         On January 22, 1999, the Board of Directors of the Company at a duly
         noticed meeting approved the Company's 1999 Incentive and Nonstatutory
         Stock Option Plan (the "Plan"). The Plan reserves 500,000 shares of
         common stock of the Company for issuance to employees, directors, and
         consultants in the form of options. The Plan is subject to approval of
         the Company's shareholders at the next annual shareholders meeting. No
         issuances have been made under the Plan as of this date.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a) EXHIBITS:

             (10) Material Contracts

                  (i)      Amendment to Employment Agreement between New
                           Directions Manufacturing, Inc. and Donald A. Metke,
                           dated January 22, 1999.

                  (ii)     Amendment to Employment Agreement between New
                           Directions Manufacturing, Inc. and Jack Horner, Jr.,
                           dated January 22, 1999.

                  (iii)    Amendment to Consulting Agreement between New
                           Directions Manufacturing, Inc. and Sean F. Lee, dated
                           January 22, 1999.

                  (iv)     New Directions Manufacturing, Inc. 1999 Incentive and
                           Nonstatutory Stock Option Plan.

             (27) Financial Data Schedule

         (b) REPORTS ON FORM 8-K:

             None.

\
                                       10
<PAGE>   11
                                   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.


                                  NEW DIRECTIONS MANUFACTURING, INC.
                                  (Registrant)


Date:  May 10, 1999               /s/ Donald A. Metke
      ----------------------      ----------------------------------------------
                                  DONALD A. METKE
                                  President, Chief Executive Officer, 
                                  Chief Financial Officer,
                                  Chief Operating Officer


                                       11
<PAGE>   12
                                Index to Exhibits

(10)     Material Contracts

         (i)      Amendment to Employment Agreement between New Directions
                  Manufacturing, Inc. and Donald A. Metke, dated January 22,
                  1999.

         (ii)     Amendment to Employment Agreement between New Directions
                  Manufacturing, Inc. and Jack Horner, Jr., dated January 22,
                  1999.

         (iii)    Amendment to Consulting Agreement between New Directions
                  Manufacturing, Inc. and Sean F. Lee, dated January 22, 1999.

         (iv)     New Directions Manufacturing, Inc. 1999 Incentive and
                  Nonstatutory Stock Option Plan.

(27)     Financial Data Schedule