The first scenario is they have never set up a test environment in the first place. They're either too lazy to do so, or too lazy to look into how to do it. Often confused with being 'too busy to do it'.
The second scenario is that they do have a testing environment-however, for some reason, it's broken. Some change was made, usually in a hurry to meet a deadline, and it's been broken ever since. This one is usually a result of the fix being too difficult, because the test environment was haphazardly thrown together in the first place.