Pitched Unfairly

InGen Board of Directors

Opening weekend: below plan.

Q3 board meeting · Presented by the CEO

Board pack · Q3 Isla Nublar operations
  1. 01The short version
  2. 02Scorecard and KPIs
  3. 03What happened, and why
  4. 04Financials and runway
  5. 05Decisions we need
  6. 06Next quarter

Pre-read. Do not leave on the island.

TL;DR

The quarter in three lines. Line three is the ask.

  1. 1 What happened

    We opened the park to a preview group for one weekend. A storm and a sabotaged control system took the fences offline.

  2. 2 Where we are

    The island is evacuated and operations are suspended. The animals remain on site and in excellent health.

  3. 3 What we need

    Three decisions from this board today. None of them is reopening.

Last quarter's priorities

Five priorities, two green. One was the gift shop.

212

PriorityTargetResultStatus
Open the park to a preview weekend Guests on island by Friday Opened on schedule. Green
Win the outside safety sign-off Signed review by Sunday Review concluded early. Red
Run the island on one control system Fully automated operations Fully automated, including the outage. Red
Keep island staffing lean Skeleton crew on weekends Achieved, arguably too well. Yellow
Stock the gift shop Full inventory at opening Fully stocked. Untouched. Green

KPIs vs plan

Every KPI against plan. Every KPI is red.

MetricPlanActualVarianceStatus
VisitorsPaying guests, quarter 4,000 0 -100% Below plan
RevenueGate, hotel, gift shop $12.0M $0 -100% Below plan
Grid uptimeOpening weekend 99.99% 84.7% -15.3 pts Below plan
ContainmentAnimals inside fences 100% Below plan Recount pending Below plan
Guest NPSPreview group +50 Not surveyed Guests unavailable Below plan

What happened

One storm, one switch, one long night.

  1. Fri 08:00

    Preview opens

    The preview group arrives by helicopter. Tours start on time.

  2. Sat 15:00

    Storm forecast

    The supply boat leaves early, with most of the staff.

  3. Sat 18:00

    Storm arrives

    Tours are cut short. Vehicles are still out.

  4. Sat 20:00

    Systems switched off

    A contract programmer disables security on his way out. Fences lose power.

  5. Sun 01:30

    Manual restart

    Staff reboot the grid by hand. Power returns.

  6. Sun 06:30

    Evacuation

    The island is powered down. Everyone remaining leaves by helicopter.

Power grid, opening weekend

Uptime held at 100%. Then it held at zero.

Sun 08:00

0%

Island powered down

Weekend uptime
84.7%
Plan
99.99%

Root causes

Root cause: one person could switch off the island.

  1. 01One key to everything

    One contractor wrote, ran and could disable the control system.

    Two-person rule on every shutdown

  2. 02An unhappy critical vendor

    Our most important contractor was also our least happy. Both were knowable.

    Pay disputes escalate to the CEO

  3. 03Storm season, skeleton crew

    We opened with most staff scheduled off the island.

    No guests without full staffing

1 contract programmer
  • Perimeter fences
  • Door locks
  • Security cameras
  • Phone lines
  • Tour vehicles

Lowlights, then highlights

Lowlights first. The highlights are shorter.

Lowlights 4

  • The fences were dark for five and a half hours.
  • The outside experts left without signing the safety review.
  • The island is evacuated. Operations are suspended.
  • Our investors have retained counsel.

Highlights 3

  • The core technology works. Extremely well.
  • Brand awareness is at an all-time high.
  • Gift shop inventory: fully intact.

Financials and runway

Revenue stopped. The animals still eat.

7

months of runway
at the current burn

Revenue, Q3
$0
Cash
$115.5M
Monthly burn
$16.5M

Monthly burn by line, $M

  • Animal care and feed6.2
    Unchanged. They did not notice the closure.
  • Security and containment4.1
    Up 60% on last quarter
  • Island staff and operations3.4
    Skeleton crew, now by choice
  • Legal and insurance2.8
    New this quarter

Decisions needed

Three decisions we need today.

0 approved 0 deferred Management recommends: approve all three

  1. Motion 01

    Keep the park closed until an independent safety review signs off.

    Cost: all revenue, for now

  2. Motion 02

    Fund a second power grid and a control system no one person can switch off.

    Cost: $40M

  3. Motion 03

    Pause all plans for a second park.

    Saves: $210M

Next quarter's priorities

Three priorities for Q4. None of them is opening.

  1. 1

    Make the power boring

    Two independent grids. 99.99% uptime. No single owner.

    OwnerCOO

  2. 2

    Re-establish containment

    A verified animal count, checked twice a day. 100% inside.

    OwnerHead of park operations

  3. 3

    Earn the sign-off

    A signed independent safety review before any guest returns.

    OwnerCEO

This list is the first slide of the next meeting, graded red, yellow or green.

Questions, then closed session

Next meeting: on the mainland.

InGen · Q4 board meeting · Date to follow