You're not going to meet your timeline and budget. Something is really wrong. It's time for that tough meeting with the higher-ups. Oh no. There is obviously also a green status for when things are going well and a yellow status for when things are not going so well but things are not yet redly grave. This is a project-wide setting in a Waterfall approach. I saw the convention at both AMD and Wells Fargo Advisors. One-on-one weekly meetings with your superior is something else I have seen at both @hand and Paymetric, and if you are paying attention you can tell if you yourself are in red, yellow, or green status. When you hear "and I've never given up on you" every meeting you are in red.
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