<PAGE>   1
                                                                     (conformed)

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2001 OR


[ ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
                          ____________ TO ____________


                         COMMISSION FILE NUMBER 0-13667





                             PDG ENVIRONMENTAL, INC.
             (Exact name of registrant as specified in its charter)





                DELAWARE                                        22-2677298
(State or other jurisdiction of incorporation                (I.R.S. Employer
             or organization)                               Identification No.)


300 OXFORD DRIVE, MONROEVILLE, PENNSYLVANIA                        15146
 (Address of principal executive offices)                        (Zip Code)


                                  412-856-2200
              (Registrant's telephone number, including area code)


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

As of June 8, 2001, there were 9,042,340 shares of the registrant's common stock
outstanding.


<PAGE>   2





                    PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES

                                      INDEX


<TABLE>
<CAPTION>
PART I.  FINANCIAL INFORMATION                                                                                         PAGE

<S>                                                                                                                  <C>
    Item 1.  Consolidated Financial Statements and Notes to Consolidated Financial Statements


         (a)  Condensed Consolidated Balance Sheets as of April 30, 2001 (unaudited) and                                 3
              January 31, 2001

         (b)  Consolidated Statements of Operations for the Three Months Ended April 30, 2001                            4
              and 2000 (unaudited)

         (c)  Consolidated Statements of Cash Flows for the Three Months Ended April 30, 2001                            5
              and 2000 (unaudited)

         (d)  Notes to Consolidated Financial Statements (unaudited)                                                     6


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


PART II.  OTHER INFORMATION

    Item 1.   Legal Proceedings                                                                                         10

    Item 3.   Defaults Upon Senior Securities                                                                           10

    Item 6.   Exhibits and Reports on Form 8-K                                                                          10

    Signatures                                                                                                          11
</TABLE>





                                       2
<PAGE>   3


                          PART I. FINANCIAL INFORMATION
                    PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                 APRIL 30,             JANUARY 31,
                                                                   2001                   2001*
                                                               ------------           ------------
                                                               (UNAUDITED)
<S>                                                            <C>                    <C>
ASSETS

CURRENT ASSETS
Cash and short-term investments                                $     40,000           $    214,000
Accounts receivable - net                                         6,524,000              7,278,000
Costs and estimated earnings in excess of billings on
  uncompleted contracts                                           2,459,000              2,546,000
Inventory                                                           496,000                468,000
Other current assets                                                625,000                301,000
                                                               ------------           ------------

TOTAL CURRENT ASSETS                                             10,144,000             10,807,000

PROPERTY, PLANT AND EQUIPMENT                                     6,951,000              6,670,000
Less: accumulated depreciation                                   (5,300,000)            (5,140,000)
                                                               ------------           ------------
                                                                  1,651,000              1,530,000

OTHER ASSETS                                                        960,000              1,072,000
                                                               ------------           ------------

TOTAL ASSETS                                                   $ 12,755,000           $ 13,409,000
                                                               ============           ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable                                               $  1,751,000           $  1,923,000
Billings in excess of costs and estimated earnings
  on uncompleted contracts                                          795,000                910,000
Current portion of long-term debt                                   231,000                177,000
Accrued liabilities                                               1,726,000              1,913,000
                                                               ------------           ------------

TOTAL CURRENT LIABILITIES                                         4,503,000              4,923,000

OTHER LONG-TERM LIABILITIES                                         210,000                210,000

LONG-TERM DEBT                                                    3,704,000              2,942,000

STOCKHOLDERS' EQUITY
Cumulative convertible 2% preferred stock                            14,000                 14,000
Common stock                                                        182,000                177,000
Additional paid-in capital                                        7,858,000              7,767,000
(Deficit) retained earnings                                      (3,678,000)            (2,586,000)
Less treasury stock                                                 (38,000)               (38,000)
                                                               ------------           ------------

TOTAL STOCKHOLDERS' EQUITY                                        4,338,000              5,334,000
                                                               ------------           ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     $ 12,755,000           $ 13,409,000
                                                               ============           ============
</TABLE>

*Derived from audited financial statements.
See accompanying notes to consolidated financial statements.





                                       3
<PAGE>   4


                    PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
                      STATEMENTS OF CONSOLIDATED OPERATIONS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                    FOR THE THREE MONTHS
                                                                        ENDED APRIL 30,
                                                               ---------------------------------
                                                                  2001                  2000
                                                               -----------           -----------
<S>                                                            <C>                   <C>
CONTRACT REVENUE                                               $ 5,823,000           $ 8,067,000
CONTRACT COSTS                                                   5,498,000             7,045,000
                                                               -----------           -----------

Gross margin                                                       325,000             1,022,000

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                     1,243,000               935,000
                                                               -----------           -----------

Income (loss) from operations                                     (918,000)               87,000

OTHER INCOME (EXPENSE):
  Interest expense                                                 (85,000)              (37,000)
  Interest and other income                                          7,000                15,000
                                                               -----------           -----------

                                                                   (78,000)              (22,000)
                                                               -----------           -----------

Income (loss) before income taxes                                 (996,000)               65,000

INCOME TAX PROVISION                                                    --                (4,000)
                                                               -----------           -----------

NET INCOME (LOSS)                                              $  (996,000)          $    61,000
                                                               ===========           ===========

PER SHARE OF COMMON STOCK:

BASIC                                                          $     (0.11)          $      0.01
                                                               ===========           ===========

DILUTIVE                                                       $     (0.11)          $      0.01
                                                               ===========           ===========

AVERAGE COMMON SHARES EQUIVALENTS OUTSTANDING                    8,899,000             8,572,000

AVERAGE DILUTIVE COMMON SHARES EQUIVALENTS

OUTSTANDING                                                             --               539,000
                                                               -----------           -----------

AVERAGE COMMON SHARES AND DILUTIVE COMMON
EQUIVALENTS OUTSTANDING FOR EARNINGS PER
SHARE CALCULATION                                                8,899,000             9,111,000
                                                               ===========           ===========
</TABLE>



See accompanying notes to consolidated financial statements.


                                       4
<PAGE>   5


                    PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
                      STATEMENTS OF CONSOLIDATED CASH FLOWS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                 FOR THE THREE MONTHS
                                                                    ENDED APRIL 30,
                                                              ---------------------------
                                                                 2001             2000
                                                              ---------         ---------
<S>                                                           <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                             $(996,000)        $  61,000
ADJUSTMENTS TO RECONCILE NET INCOME
  (LOSS) TO CASH:
    Depreciation and amortization                               322,000           219,000
CHANGES IN ASSETS AND LIABILITIES
  OTHER THAN CASH:
    Accounts receivable                                         754,000          (761,000)
    Costs and estimated earnings in excess of billings
      on uncompleted contracts                                   87,000           (91,000)
    Inventory                                                   (28,000)          (13,000)
    Other current assets                                       (265,000)           71,000
    Accounts payable                                           (231,000)           (5,000)
    Billings in excess of costs and estimated earnings
      on uncompleted contracts                                 (115,000)         (115,000)
    Accrued liabilities                                         (83,000)          152,000
                                                              ---------         ---------

                                                                119,000          (762,000)
                                                              ---------         ---------

NET CASH USED BY OPERATING ACTIVITIES                          (555,000)         (482,000)

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property, plant and equipment                  (297,000)         (132,000)
    Acquisition of Businesses                                  (129,000)         (460,000)
    Increase in other assets                                     (9,000)               --
                                                              ---------         ---------
NET CASH USED BY INVESTING ACTIVITIES                          (435,000)         (592,000)

CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from debt                                          936,000           905,000
    Principal payments on debt                                 (120,000)          (38,000)
                                                              ---------         ---------

NET CASH PROVIDED BY FINANCING ACTIVITIES                       816,000           867,000
                                                              ---------         ---------

Net Decrease in Cash and Short-Term Investments                (174,000)         (207,000)
Cash and Short-Term Investments, Beginning of Period            214,000           282,000
                                                              ---------         ---------

CASH AND SHORT-TERM INVESTMENTS, END OF PERIOD                $  40,000         $  75,000
                                                              =========         =========
</TABLE>


See accompanying notes to consolidated financial statements.


                                       5
<PAGE>   6


                    PDG ENVIRONMENTAL, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED APRIL 30, 2001
                                   (UNAUDITED)


NOTE 1 -- BASIS OF PRESENTATION

The consolidated financial statements include PDG Environmental, Inc.'s (the
"Corporation") and its wholly-owned subsidiaries.

The accompanying consolidated financial statements of the Corporation are
unaudited. However, in the opinion of management, they include all adjustments
necessary for a fair presentation of financial position, results of operations
and cash flows. All adjustments made during the three months ended April 30,
2001 were of a normal, recurring nature. The amounts presented for the three
months ended April 30, 2001 are not necessarily indicative of results of
operations for a full year. Additional information is contained in the Annual
Report on Form 10-KSB of the Corporation for the year ended January 31, 2001
dated March 30, 2001, which should be read in conjunction with this quarterly
report.

NOTE 2 - FEDERAL INCOME TAXES

No federal income tax has been provided for the three months ended April 30,
2001 due to the loss in the current period and the existence of unused net
operating loss carryforwards. No state income taxes were provided due to the
loss in the current period.

Income taxes paid by the Corporation for the three months ended April 30, 2001
and 2000 totaled approximately $47,000 and $16,000, respectively.

NOTE 3 - LINE OF CREDIT

On August 3, 2000, the Corporation closed on a new $4.7 million credit facility
with Sky Bank, an Ohio banking association, consisting of a 3-year $3 million
revolving line of credit, a 5-year $1 million equipment note, a 15-year $0.4
million mortgage and a 5-year $0.3 million commitment for future equipment
financing. The new financing repaid all of the Company's existing debt. In April
2001, the Company borrowed $273,000 against the commitment for future equipment
financing to fund equipment purchases.

The line of credit, equipment note and commitment for future equipment financing
are at an interest rate of prime plus 1% with financial covenant incentives
which may reduce the interest rate to either prime plus 1/2% or prime. The
mortgage is at an interest rate of 9.15% fixed for three years and is then
adjusted to 2.75% above the 3-year Treasury Index every three years. The Chief
Executive Officer of the Corporation provided a limited personal guarantee for
the credit facility.

In November 2000, Sky Bank approved a $1.5 million increase in the line of
credit to $4.5 million to fund the proposed acquisition of an asbestos abatement
and demolition company in California. The increase in the line is subject to the
closing of that transaction. Additionally, Sky Bank increased the commitment for
future equipment financing by $0.3 million to $0.6 million.

On April 30, 2001, the balance on the line of credit was $2,075,000 with an
unused availability of $925,000.

The Corporation paid interest costs totaling approximately $85,000 and $31,000
during the three months ended April 30, 2001 and 2000, respectively.

NOTE 4 - PREFERRED STOCK

Cumulative dividends in arrears on the Corporation's 2% Series A Preferred Stock
were approximately $9,000 at April 30, 2001. At April 30, 2001, there were 6,000
shares of Series A Preferred Stock outstanding. Each share of Series A Preferred
Stock is convertible into four shares of the Corporation's common stock at the
option of the preferred stockholder.



                                       6
<PAGE>   7

The conversion rate on the Series A Preferred Stock is also subject to
adjustment as a result of certain changes in the Corporation's capital structure
or distributions to common stockholders (except for cash dividends permissible
under law).

At the Corporation's Annual Meeting of Stockholders held on July 23, 1993, the
following matters were approved by a majority of the Corporation's preferred and
common stockholders which affected the Corporation's Series A Preferred stock
and common stock: a reduction in the Series A Preferred Stock dividend rate from
9% to 2% and the cancellation of the accrued but unpaid dividends and the
special voting rights associated with such preferred stock in the event of a
certain accumulation of accrued but unpaid dividends thereon; and a
recapitalization of the Corporation in order to effect a one for two reverse
stock split (the "Recapitalization"). In exchange for the forfeiture of the
accrued but undeclared and unpaid dividends, the holders of the Series A
Preferred Stock were granted a common stock right which, if and when declared by
the Board of Directors, grant to the holders of such common stock rights shares
of the common stock of the Corporation. At the May 23, 1995, March 6, 2000 and
March 21, 2001 Board of Directors meeting, the issuance of one third of the
shares (280,071, 259,696 and 259,696 common shares, respectively) covered by the
aforementioned right was approved. The Recapitalization was contingent upon the
Corporation's listing on the American Stock Exchange. The Corporation made a
decision not to pursue such a listing; therefore, the Recapitalization was
indefinitely postponed.

NOTE 5 - NET EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per
share:

<TABLE>
<CAPTION>
                                                                        FOR THE THREE MONTHS
                                                                            ENDED APRIL 30,
                                                                        2001               2000
                                                                     ----------         ----------
<S>                                                                  <C>                <C>
NUMERATOR:
Net Income (loss)                                                    $ (996,000)        $   61,000
Preferred stock dividends                                                    --                 --
                                                                     ----------         ----------
Numerator for basic earnings per share--income available
      to common stockholders                                           (996,000)            61,000

Effect of dilutive securities:
      Preferred stock dividends                                              --                 --
                                                                     ----------         ----------

Numerator for diluted earnings per share--income available to
      common stock after assumed conversions                         $ (996,000)        $   61,000
                                                                     ==========         ==========

DENOMINATOR:

Denominator for basic earnings per share--weighted average
    shares                                                            8,899,000          8,572,000

Effect of dilutive securities:
    Employee stock options                                                   --            500,000
    Warrants                                                                 --             12,000
  Convertible preferred stock                                                --             27,000
                                                                     ----------         ----------

Dilutive potential common shares                                             --            539,000
                                                                     ----------         ----------
  Denominator for diluted earnings per share--adjusted
  weighted-average shares and assumed conversions                     8,899,000          9,111,000
                                                                     ==========         ==========

BASIC EARNINGS PER SHARE                                             $    (0.11)        $     0.01
                                                                     ==========         ==========

DILUTED EARNINGS PER SHARE                                           $    (0.11)        $     0.01
                                                                     ==========         ==========
</TABLE>


                                       7
<PAGE>   8

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS




RESULTS OF OPERATIONS

THREE MONTHS ENDED APRIL 30, 2001 AND 2000

During the three months ended April 30, 2001 ("Fiscal 2002"), the Corporation's
contract revenues decreased to $5.8 million compared to $8.1 million in the
three months ended April 30, 2000 ("Fiscal 2001") due to delays in commencing
contracts in response to the general economic slowdown.

The Corporation's gross margin decreased to $0.3 million in the first quarter of
fiscal 2002 compared to $1.0 million in the first quarter of fiscal 2001. The
decrease in gross margin is due to decreased levels of revenues in the current
fiscal quarter.

Selling, general and administrative expenses increased to $1.2 million in the
current fiscal quarter as compared to $0.9 million in the three months ended
April 30, 2000. This increase was due to the addition of four branch offices in
the current fiscal quarter.

The Corporation reported a loss from operations of $0.92 million for the three
months ended April 30, 2001 compared to income from operations of $0.09 million
for the three months ended April 30, 2000 as a direct result of the factors
discussed above.

Interest expense increased to $0.08 million in the current quarter as compared
to $0.04 million in the same quarter of a year ago due to a higher level of
borrowings.

During the quarters ended April 30, 2001 and 2000, the Corporation made no
provision for federal income taxes due to the utilization of net operating loss
carryforwards for financial reporting purposes. No state income tax provision
was made in the current quarter due to the loss while a state income tax
provision of $4,000 was made in the prior fiscal quarter.

LIQUIDITY AND CAPITAL RESOURCES

During the three months ended April 30, 2001, the Corporation's cash decreased
by $0.17 million to $0.04 million.

Cash used by operating activities totaled $0.56 million in the three months
ended April 30, 2001. Cash outflows included $1.0 million from the current
quarter loss, a $0.27 million increase in other assets, a $0.23 million decrease
in accounts payable, a $0.12 million decrease in billings in excess of costs and
estimated earnings on uncompleted contracts and a $0.08 million decrease in
accrued liabilities. These cash outflows were partially offset by cash inflows
including a $0.75 million decrease in accounts receivable, a $0.09 million
decrease in costs and estimated earnings in excess of billings on uncompleted
contracts and $0.32 million of depreciation and amortization.

The decrease in cash and short term investments during the first quarter of
fiscal 2001 is attributable to cash outflows from operations of $0.56 million,
cash outflows for investing activities of $0.46 million which included $0.13
million of payments to the former owners of businesses acquired in prior years
and $0.30 million for the purchase of property, plant and equipment. These cash
outflows were partially offset by net cash inflows of $0.81 million from funding
activities which included proceeds from debt of $0.94 million consisting of
$0.67 million from the utilization of the Corporation's line of credit and $0.27
million from borrowings to finance new equipment purchases. These financing
inflows were partially offset by $0.12 million of principal payments on debt.

At April 30, 2001, the Corporation's backlog totaled $33.6 million ($23.9
million on fixed fee contracts and $9.7 million on time and materials or unit
price contracts).

During the three months ended April 30, 2000, the Corporation's cash decreased
by $0.21 million to $0.08 million.



                                       8
<PAGE>   9

Cash used by operating activities totaled $0.5 million in the three months ended
April 30, 2000. Cash outflows included a $0.76 million increase in accounts
receivables, a $0.09 million increase in costs and estimated earnings in excess
of billings on uncompleted contracts and a $0.12 million decrease in billings in
excess of costs and estimated earnings on uncompleted contracts. These cash
outflows were partially offset by cash inflows including $0.06 million related
to net income generated during the current three months, $0.07 million due to a
decrease in other current assets, a $0.15 million increase in accrued
liabilities related to the timing of payments and $0.22 million of depreciation
and amortization.

The decrease in cash and short term investments during the first quarter of
fiscal 2001 is attributable to cash outflows from operations of $0.5 million,
cash outflows for investing activities which included $0.46 million to purchase
the businesses acquired and $0.13 million for the purchase of property, plant
and equipment. These cash outflows were partially offset by net cash inflows of
$0.87 million primarily from the utilization of the Corporation's line of
credit.



















                                       9
<PAGE>   10

                           PART II-- OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Registrant is subject to dispute and litigation in the ordinary course of
business. None of these matters, in the opinion of management, is likely to
result in a material effect on the Registrant based upon information available
at this time.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Registrant is currently in arrears with respect to the payment of dividends
on its Series A Preferred Stock. At April 30, 2001, the cumulative dividends in
arrears on the Series A Preferred Stock were approximately $9,000.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits:


                                 EXHIBIT INDEX
                          EXHIBIT NO. AND DESCRIPTION

                                                             PAGES OF SEQUENTIAL
                                                              NUMBERING SYSTEM



(b) Reports on Form 8-K


The registrant did not file any current reports on Form 8-K during the three
months ended April 30, 2001.











                                       10
<PAGE>   11


                                   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 thereunto duly authorized.

                                         PDG ENVIRONMENTAL, INC.

                                         By /s/ John C. Regan
                                            ---------------------------------
                                            John C. Regan
                                            Chairman and Chief Executive Officer

Date: June 14, 2001















































                                       11