8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

July 25, 2019

Date of Report (Date of earliest event reported)

ALTRA INDUSTRIAL MOTION CORP.

(Exact name of registrant as specified in its charter)

Delaware	001-33209	61-1478870
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
300 Granite Street, Suite 201 Braintree, Massachusetts		02184
(Address of principal executive offices)		(Zip Code)

(781) 917-0600

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	AIMC	NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On July 25, 2019, Altra Industrial Motion Corp. (“the Company”) announced certain unaudited financial results for the second quarter ended June 30, 2019. A copy of the announcement is attached hereto as Exhibit 99.1, which is incorporated by reference herein. On July 25, 2019, the Company will hold a conference call with investors to discuss unaudited results for the second quarter ended June 30, 2019. The chart presentation to be used during the call is attached hereto as Exhibit 99.2 to this report and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit No.	Description
99.1	Press release of Altra Industrial Motion Corp., dated July 25, 2019.
99.2	Charts to be used during the investor conference call, dated July 25, 2019.

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 hereunto duly authorized.

ALTRA INDUSTRIAL MOTION CORP.
/s/ Carl R. Christenson
Name:	Carl R. Christenson
Title:	Chairman and Chief Executive Officer

Date: July 25, 2019

EX-99.1

Exhibit 99.1

Altra Reports Second-Quarter 2019 Results

Q2 Sales of $466.5M up 97% Year-over-Year Reflecting
Addition of Automation & Specialty (“A&S”) Business

On Track to Exceed 2019 Synergy Targets and achieve debt reduction target

Resetting 2019 Guidance to Align with Market Conditions

BRAINTREE, Mass., July 25, 2019 (GLOBE NEWSWIRE) -- Altra Industrial Motion Corp. (Nasdaq: AIMC) (“Altra” or the “Company”), a leading global manufacturer and supplier of motion control, power transmission and automation products, today announced unaudited financial results for the second quarter ended June 30, 2019. Except where otherwise noted, financial results for the second quarter of 2019 include the A&S business whereas results for the prior year period do not include financial results of the A&S business on a proforma basis.  

Second Quarter Financial Highlights

• Second-quarter 2019 net sales were $466.5 million, up 97% from $237.3 million in the second quarter of 2018. Organic sales were down 2.7% for the combined business on an unaudited pro forma basis, compared to the second quarter of 2018. Excluding the impact of foreign currency translation, Power Transmission Technologies (PTT) segment sales were up 1.8% and Automation & Specialty (A&S) segment sales were down 6.6% compared to the prior year.*

• Second-quarter net income was $29.0 million, or $0.45 per diluted share, compared with $19.0 million, or $0.65 per diluted share, in the second quarter of 2018. Non-GAAP net income in the second quarter of 2019 was $45.6 million, or $0.71 per diluted share. This is compared with non-GAAP net income of $22.6 million, or $0.78 per diluted share, in the second quarter of 2018.* 

• Non-GAAP adjusted EBITDA in the second quarter of 2019 was $95.5 million, or 20.5% of net sales, compared with $39.7 million, or 16.7% of net sales, in the second quarter of 2018.*

• Operating income margin in the second quarter of 2019 was 12.2% compared with 11.8% in the second quarter of 2018. Gross profit margin in the second quarter of 2019 was 35.8%, a 280 basis point increase over 33.0% in the second quarter of 2018. Non-GAAP operating income margin in the second quarter of 2019 was 16.9%, a 390 basis point increase from 13.0% in the second quarter of 2018.*

• Cash flow from operations for the second quarter 2019 of $56.8 million led to free cash flow of $46.7 million, nearly double the free cash flow generated in the first quarter of 2019. On a year-to-date basis the Company has generated $72.0 million of free cash flow.*

• $35.0 million of debt was paid down in the second quarter of 2019, with total debt pay down of $70.0 million since the closing of the A&S merger on October 1, 2018.

Strategic Highlights

• Previously announced closure of significant Northeast facility on track to be completed before the end of the year.

• Cross-selling sales funnel is growing as a result of strong sales team collaboration

• On track to exceed $10.0 million to $12.0 million of synergies in 2019 and deliver a total of $52.0 million of synergies by year four, with strategic supply chain initiatives substantially ahead of 2019 targets.

Management Comments

“During the second quarter, we experienced mixed business conditions with some end markets quite strong while others were weaker than expected. This impacted overall organic revenue and earnings growth for Altra and resulted in a weaker-than-expected Q2 performance,” said Carl Christenson, Altra’s Chairman and Chief Executive Officer.

“Most notably, we saw continued weakness across our semi-conductor, robotics, turf and garden and agriculture markets and a decline in revenues into the global truck markets. This was partially offset by strength across the medical, mining, defense and renewable energy end markets. Margins were up year-over-year, reflecting the benefit of the A&S merger, but down sequentially with Q2 gross profit margin of 35.8%, non-GAAP adjusted operating income margin of 16.9% and non-GAAP adjusted EBITDA margin of 20.5%.* Our ongoing focus on cash management yielded a favorable $46.7 million of free cash flow in the second quarter which is nearly double the amount of cash that we generated in the first quarter.*”

“The weakness we are seeing in the global industrial economy, which is primarily due to the uncertainty regarding trade and tariff’s and the recent downturn in industrial activity in Europe and China, is expected to continue into the foreseeable future. Although we are not anticipating the downturn to be long term or exceptionally deep, to better align our cost structure with near term dynamics we are accelerating cost reductions and other margin improvement initiatives.”

“At the same time, we remain focused on executing on our strategic priorities to position Altra to deliver on our promise as a premier industrial company,” Christenson continued. “This includes achieving our synergy targets by leveraging sales collaborations, advancing our supply chain optimization efforts and continuing to integrate our world-class business systems across the combined organization. In addition, we remain focused on generating strong free cash flow to expediently de-lever the balance sheet.”

“Looking forward, we are resetting our 2019 guidance to reflect our expectations for the mixed market conditions to continue through the balance of the year,” continued Christenson. “Despite this reset, I am confident that we are taking the necessary actions to manage the near-term dynamics while focusing on the strategic priorities that will advance Altra toward our long-term growth goals of delivering a 425-basis points of Adjusted EBITDA margin improvement by the end of 2022 and expediently deleveraging the balance sheet to historical levels of less than 3x Net Debt/Adjusted EBITDA.”

Business Outlook  

Altra is revising its guidance for full year 2019 as follows:  

• Full-year 2019 sales in the range of $1,850 to $1,880 million.

• GAAP diluted EPS in the range of $1.81 to $1.95.

• Non-GAAP diluted EPS in the range of $2.81 to $2.97.*

• Non-GAAP adjusted EBITDA in the range of $385 to $400 million.*

• Tax rate for the full year is now expected to be approximately 23.5% to 25.0% before discrete items, capital expenditures in the range of $50 to $55 million, and depreciation and amortization in the range of $128 to $135 million.

Reconciliations of Non-GAAP Disclosures

(Amounts in Millions of Dollars, except per share information)

*Reconciliation of Non-GAAP Net Income:

	Quarter Ended June 30,						Year to Date Ended June 30,
	2019			2018			2019			2018
Net income	$	29.0		$	19.0		$	64.2		$	28.0
Restructuring costs	$	3.2		$	0.6		$	5.5		$	1.5
Acquisition related stock compensation expense		0.8			-			1.9			-
Supplier warranty settlement		-			(2.0	)		-			(2.0	)
Acquisition related amortization expense		17.6			2.4			35.4			4.9
Loss on partial settlement of pension plan		-			-			-			5.1
Acquisition related expenses		0.2			1.8			0.7			7.2
Tax impact of above adjustments		(5.2	)		0.8			(10.4	)		(0.9	)
Non-GAAP net income*	$	45.6		$	22.6		$	97.3		$	43.8
Non-GAAP diluted earnings per share*	$	0.71		$	0.78		$	1.51		$	1.50

*Reconciliation of Free Cash Flow

	Quarter Ended June 30,						Year to Date Ended June 30,
	2019			2018			2019			2018
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net cash flows from operating activities	$	56.8		$	25.4		$	96.1		$	29.1
Purchase of property, plant and equipment		(10.1	)		(7.9	)		(24.1	)		(14.9	)
Free cash flow*	$	46.7		$	17.5		$	72.0		$	14.2

*Reconciliation of Net Debt

	June 30, 2019			December 31, 2018
Debt	$	1,685.7		$	1,734.0
Cash		(153.6	)		(169.0	)
Net debt*	$	1,532.1		$	1,565.0

*Reconciliation of Non-GAAP Income from Operations:

	Quarter Ended June 30,						Year to Date Ended June 30,
	2019			2018			2019			2018
Income from operations	$	57.1		$	28.0		$	123.5		$	47.8
Income from operations as a percent of net sales		12.2	%		11.8	%		13.0	%		10.0	%
Restructuring costs	$	3.2		$	0.6		$	5.5		$	1.5
Acquisition related stock compensation expense		0.8			-			1.9			-
Supplier warranty settlement		-			(2.0	)		-			(2.0	)
Acquisition related amortization expense		17.6			2.4			35.4			4.9
Acquisition related expenses		0.2			1.8			0.7			7.2
Non-GAAP income from operations*	$	78.9		$	30.8		$	167.0		$	59.4
Non-GAAP Income from operations as a percent of net sales		16.9	%		13.0	%		17.6	%		12.4	%

*Reconciliation of GAAP to Non-GAAP Operating Income and Operating Income Margin

Selected Statement of Income Data
	Quarter Ended June 30, 2019								Quarter Ended June 30, 2018
	GAAP Operating Income			Adjustments		Non-GAAP Operating Income*			GAAP Operating Income			Adjustments			Non-GAAP Operating Income*
Net sales	$	466.5		$	-	$	466.5		$	237.3		$	-		$	237.3
Cost of sales		299.5			-		299.5			159.1			(2.0	)		161.1
Gross profit		167.0			-		167.0			78.2			(2.0	)		76.2
Operating Expenses
Selling, general & administrative expenses		92.0			18.6		73.4			43.4			4.2			39.2
Research and development expenses		14.7			-		14.7			6.2			-			6.2
Restructuring costs		3.2			3.2		-			0.6			0.6			-
Income from Operations	$	57.1		$	21.8	$	78.9		$	28.0		$	2.8		$	30.8
GAAP and Non-GAAP Income from operations as a percent of net sales		12.2	%				16.9	%		11.8	%					13.0	%
	Year to Date Ended June 30, 2019								Year to Date Ended June 30, 2018
	GAAP Operating Income			Adjustments		Non-GAAP Operating Income*			GAAP Operating Income			Adjustments			Non-GAAP Operating Income*
Net sales	$	949.3		$	-	$	949.3		$	477.7		$	-		$	477.7
Cost of sales		607.4			-		607.4			325.2			(2.0	)		327.2
Gross profit		341.9			-		341.9			152.5			(2.0	)		150.5
Operating Expenses
Selling, general & administrative expenses		182.9			38.0		144.9			90.5			12.1			78.4
Research and development expenses		30.0			-		30.0			12.7			-			12.7
Restructuring costs		5.5			5.5		-			1.5			1.5			-
Income from Operations	$	123.5		$	43.5	$	167.0		$	47.8		$	11.6		$	59.4
GAAP and Non-GAAP Income from operations as a percent of net sales		13.0	%				17.6	%		10.0	%					12.4	%

*Reconciliation of Non-GAAP Adjusted EBITDA and Non-GAAP Adjusted EBITDA Margin:

	Quarter Ended June 30,
	2019			2018
Net income	$	29.0		$	19.0
Asset impairment and other, net		(0.3	)		0.3
Tax expense		9.1			7.2
Interest expense		18.6			2.1
Depreciation expense		14.6			6.9
Acquisition related amortization expense		17.6			2.4
Acquisition related expenses		0.2			1.8
Loss on partial settlement of pension plans		-			-
Stock compensation expense		3.5			1.4
Supplier warranty settlement		-			(2.0	)
Restructuring costs		3.2			0.6
Non-GAAP adjusted EBITDA	$	95.5		$	39.7
Non-GAAP adjusted EBITDA as a percent of net sales		20.5	%		16.7	%

*Reconciliation of 2019 Non-GAAP Net Income Guidance and Non-GAAP Diluted EPS Guidance:

	Projected Fiscal Year 2019 Net Income	Projected Fiscal Year 2019 Diluted EPS
Net income and diluted earnings per share	$116.8 - $125.8	$1.81 - $1.95
Restructuring costs	12.0
Acquisition related stock compensation expense	3.1
Acquisition related amortization expense	70.0
Acquisition expense	0.8
Tax impact of above adjustments(1) (2)	(21.5) - (20.2)
Non-GAAP Net Income and Non-GAAP Diluted EPS Guidance*	$181.2 - $191.5	$2.81 - $2.97
(1) Adjustments are pre-tax, with net tax impact listed separately
(2) Tax impact is calculated by multiplying the estimated effective tax rate for the period of 23.5% - 25.0% by the above items

*Reconciliation of 2019 Non-GAAP Adjusted EBITDA Guidance:

	Fiscal Year 2019
Net income	$116.8 - $125.8
Interest expense	76.0 - 75.0
Tax expense	39.5 - 39.0
Depreciation expense	57.7 - 65.0
Acquisition related amortization expense		70.0
Stock based compensation	13.0 - 13.2
Restructuring costs		12.0
Non-GAAP adjusted EBITDA*	$385.0 - $400.0

Conference Call

The Company will conduct an investor conference call to discuss its unaudited second quarter financial results on Thursday, July 25, 2019 at 10:00 a.m. ET. The public is invited to listen to the conference call by dialing (866) 209-9085 domestically or (647) 689-5687 for international access and asking to participate in the ALTRA conference call. A live webcast of the call will be available in the "Investor Relations" section of www.altramotion.com. Individuals may download charts that will be used during the call at www.altramotion.com under Events and Presentations in the Investor Relations section. The charts will be available after earnings are released. A replay of the recorded conference call will be available at the conclusion of the call on July 25 through midnight on August 8, 2019. To listen to the replay, dial (800) 585-8367 domestically or (416) 621-4642 for international access (Conference ID: 4918987). A webcast replay also will be available.

About Altra Industrial Motion Corp.

Altra Industrial Motion Corp. is a premier industrial, global manufacturer and supplier of electromechanical power transmission, motion control and automation products, including highly engineered power transmission, motion control and engine braking systems and components. Altra's portfolio consists of 27 well-respected brands including Bauer Gear Motor, Boston Gear, Jacobs Vehicle Systems, Kollmorgen, Portescap, Stromag, Svendborg Brakes, TB Wood's, Thomson and Warner Electric. Headquartered in Braintree, Massachusetts, Altra has approximately 9,300 employees and over 50 production facilities in 16 countries around the world.

Altra Industrial Motion Corp.
Consolidated Balance Sheets
In Millions of Dollars	June 30, 2019			December 31, 2018
Assets:	(Unaudited)
Current Assets
Cash and cash equivalents	$	153.6		$	169.0
Trade receivables, net		269.6			259.8
Inventories		237.5			231.2
Income tax receivable		15.0			10.2
Prepaid expenses and other current assets		34.6			33.1
Assets held for sale		-			0.7
Total current assets		710.3			704.0
Property, plant and equipment, net		360.8			364.4
Intangible assets, net		1,546.5			1,585.7
Goodwill		1,686.1			1,662.3
Deferred income taxes		0.9			4.9
Other non-current assets, net		12.8			15.9
Operating lease, right of use asset		40.4			-
Total assets	$	4,357.8		$	4,337.2
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$	156.5		$	175.8
Accrued payroll		54.5			57.0
Accruals and other current liabilities		80.5			79.6
Income tax payable		9.4			7.5
Current portion of long-term debt		19.2			17.2
Operating lease liabilities		14.3			-
Total current liabilities		334.4			337.1
Long-term debt, less current portion and net    of unaccreted discount		1,642.5			1,690.9
Deferred income taxes		401.2			393.2
Pension liabilities		32.9			32.0
Long-term taxes payable		4.5			5.4
Other long-term liabilities		30.2			30.4
Operating lease liabilities, net of current portion		27.7			-
Total stockholders' equity		1,884.4			1,848.2
Total liabilities, and stockholders' equity	$	4,357.8		$	4,337.2
Reconciliation to operating working capital:
Trade receivables, net		269.6			259.8
Inventories		237.5			231.2
Accounts payable		(156.5	)		(175.8	)
Non-GAAP operating working capital*	$	350.6		$	315.2

Consolidated Statements of Income Data:	Quarter Ended June 30,										Year to Date Ended June 30,
In Millions of Dollars	2019					2018					2019					2018
	(Unaudited)					(Unaudited)					(Unaudited)
Net sales	$	466.5				$	237.3				$	949.3				$	477.7
Cost of sales		299.5					159.1					607.4					325.2
Gross profit	$	167.0				$	78.2				$	341.9				$	152.5
Gross profit as a percent of net sales		35.8	%				33.0	%				36.0	%				31.9	%
Selling, general & administrative expenses		92.0					43.4					182.9					90.5
Research and development expenses		14.7					6.2					30.0					12.7
Restructuring costs		3.2					0.6					5.5					1.5
Income from operations	$	57.1				$	28.0				$	123.5				$	47.8
Income from operations as a percent of net sales		12.2	%				11.8	%				13.0	%				10.0	%
Loss on partial settlement of pension plan		-					-					-					5.1
Interest expense, net		18.6					2.1					38.4					3.9
Other non-operating expense/(income), net		0.4					(0.3	)				1.5					(0.4	)
Income before income taxes	$	38.1				$	26.2				$	83.6				$	39.2
Provision/(Benefit) for income taxes		9.1					7.2					19.4					11.2
Income tax rate		23.9	%				27.5	%				23.2	%				28.6	%
Net income	$	29.0				$	19.0				$	64.2				$	28.0
Weighted Average common shares outstanding:
Basic		64.3					29.0					64.3					29.1
Diluted		64.5					29.1					64.5					29.2
Net income per share:
Basic	$	0.45				$	0.66				$	1.00				$	0.96
Diluted	$	0.45				$	0.65				$	1.00				$	0.96
Reconciliation of Non-GAAP Income From Operations:
Income from operations	$	57.1				$	28.0				$	123.5				$	47.8
Restructuring costs		3.2					0.6					5.5					1.5
Acquisition related stock compensation expense		0.8					-					1.9					-
Supplier warranty settlement		-					(2.0	)				-					(2.0	)
Acquisition related amortization expense		17.6					2.4					35.4					4.9
Acquisition related expenses		0.2					1.8					0.7					7.2
Non-GAAP income from operations *	$	78.9				$	30.8				$	167.0				$	59.4
Non-GAAP income from operations as a percent of net sales		16.9	%				13.0	%				17.6	%				12.4	%
Reconciliation of Non-GAAP Net Income:	`
Net income	$	29.0				$	19.0				$	64.2				$	28.0
Restructuring costs		3.2					0.6					5.5					1.5
Acquisition related stock compensation expense		0.8					-					1.9					-
Supplier warranty settlement		-					(2.0	)				-					(2.0	)
Acquisition related amortization expense		17.6					2.4					35.4					4.9
Loss on partial settlement of pension plan		-					-					-					5.1
Acquisition related expenses		0.2					1.8					0.7					7.2
Tax impact of above adjustments		(5.2	)				0.8					(10.4	)				(0.9	)
Non-GAAP net income *	$	45.6				$	22.6				$	97.3				$	43.8
Non-GAAP diluted earnings per share *	$	0.71		(1	)	$	0.78		(2	)	$	1.51		(3	)	$	1.50		(4	)
(1) -  Tax impact is calculated by multiplying the estimated effective tax rate for the period of 23.9% by the above items.
(2) -  Tax impact is calculated by multiplying the estimated effective tax rate for the period of 24.2% by restructuring costs and acquisition related amortization expense. Acquisition related expenses in the quarter are not tax deductible, therefore the tax impact has been eliminated. The supplier warranty settlement income is not taxable in the local jurisdiction; therefore, no tax impact has been assumed.
(3) -  Tax impact is calculated by multiplying the estimated effective tax rate for the period of 23.9% by the above items.
(4) -  Tax impact is calculated by multiplying the estimated effective tax rate for the period of 24.2% by restructuring and acquisition related amortization expense, and the loss on settlement of pension plan. Acquisition related expenses in the quarter are not tax deductible, therefore the tax impact has been eliminated. The supplier warranty settlement income is not taxable in the local jurisdiction; therefore, no tax impact has been assumed.

Cash flows from operating activities	Year to Date Ended June 30,
In Millions of Dollars	2019			2018
Net income	$	64.2		$	28.0
Adjustments to reconcile net income to net operating cash flows:
Depreciation		28.9			13.8
Amortization of intangible assets		35.4			4.9
Amortization of deferred financing costs		2.3			0.3
Loss on foreign currency, net		0.8			—
Loss on partial settlement of pension plan		—			5.1
Loss on disposal, impairment and other		0.2			0.3
Stock based compensation		7.0			2.7
Changes in assets and liabilities, net of assets acquired:
Trade receivables		(10.2	)		(13.0	)
Inventories		(6.3	)		(5.5	)
Accounts payable, accrued payroll, accruals and current liabilities		(20.2	)		2.0
Other current assets and liabilities		(4.5	)		(3.9	)
Other operating assets and liabilities		(1.5	)		(5.6	)
Net cash provided by operating activities		96.1			29.1
Cash flows from investing activities
Purchase of property, plant and equipment		(24.1	)		(14.9	)
A&S acquisition purchase price adjustment		(13.5	)		—
Acquisition of Aluminium Die Casting, S.r.L.		—			(2.7	)
Proceeds from sale of building		0.3			—
Net cash used in investing activities		(37.3	)		(17.6	)
Cash flows from financing activities
Payments on 2015 Revolving Credit Facility		—			(24.4	)
Payments on Term Loan Facility		(50.0	)		—
Dividend payments		(22.0	)		(10.0	)
Borrowing under 2015 Revolving Credit Facility		—			11.0
Payments of equipment, working capital notes, mortgages and other debts		(0.5	)		(0.6	)
Proceeds from issuance of China debt		2.4			—
Shares surrendered for tax withholding		(2.3	)		(1.5	)
Net cash used in financing activities		(72.4	)		(25.5	)
Effect of exchange rate changes on cash and cash equivalents		(1.8	)		0.1
Net change in cash and cash equivalents		(15.4	)		(13.9	)
Cash and cash equivalents at beginning of period		169.0			52.0
Cash and cash equivalents at end of period	$	153.6		$	38.1
Reconciliation to free cash flow:
Net cash flows from operating activities	$	96.1		$	29.1
Purchase of property, plant and equipment		(24.1	)		(14.9	)
Free cash flow *	$	72.0		$	14.2

Selected Segment Data	Quarter Ended June 30,						Year to Date Ended June 30,
In Millions of Dollars	2019			2018			2019			2018
Net Sales:
Power Transmission Technologies	$	234.9		$	237.3		$	469.8		$	477.7
Automation & Specialty		233.3			-			482.4			-
Inter-segment eliminations		(1.7	)		-			(2.9	)		-
Total	$	466.5		$	237.3		$	949.3		$	477.7
Income from operations:
Power Transmission Technologies	$	31.9		$	33.2		$	60.8		$	61.5
Automation & Specialty		31.8			-			72.4			-
Corporate		(3.4	)		(4.6	)		(4.2	)		(12.2	)
Restructuring costs		(3.2	)		(0.6	)		(5.5	)		(1.5	)
Total	$	57.1		$	28.0		$	123.5		$	47.8

*Reconciliation of Non-GAAP Income from Operations by Segment:

Selected Segment Data
(In Millions of Dollars	Quarter Ended June 30, 2019												Year to Date Ended June 30, 2019
	Power Transmission Technologies			Automation and Specialty			Corporate			Total			Power Transmission Technologies			Automation and Specialty			Corporate			Total
Income from operations:
Income from operations	$	30.1		$	30.4		$	(3.4	)	$	57.1		$	57.9		$	69.8		$	(4.2	)	$	123.5
Restructuring costs		1.8			1.4			-			3.2			2.9			2.6			-			5.5
Acquisition related stock compensation expense		-			-			0.8			0.8			-			-			1.9			1.9
Acquisition related amortization expense		2.3			15.3			-			17.6			4.6			30.8			-			35.4
Acquisition related expenses		-			-			0.2			0.2			-			-			0.7			0.7
Total Non-GAAP Income from operations	$	34.2		$	47.1		$	(2.4	)	$	78.9		$	65.4		$	103.2		$	(1.6	)	$	167.0
Non-GAAP Income from operations as a percentage of Segment net sales*		14.6	%		20.2	%					16.9	%		13.9	%		21.4	%					17.6	%

* Discussion of Non-GAAP Financial Measures

The non-GAAP financial measures used in this release are utilized by management in comparing our operating performance on a consistent basis.  We believe that these financial measures are appropriate to enhance the overall understanding of our underlying operating performance trends compared to historical and prospective periods and our peers. We believe that these measures provide important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations as well as insight into the compliance with our debt covenants.  Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP.  Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures.  A reconciliation of non-GAAP financial measures presented above to our GAAP results has been provided in the financial tables included in this press release.

Organic Sales

Organic sales in this release excludes the impact of foreign currency translation.

Non-GAAP Net Income, Non-GAAP income from operations, Non-GAAP Diluted earnings per share, Non-GAAP operating income margin, and Non-GAAP Net Income and Non-GAAP Diluted EPS Guidance

Non-GAAP net income, non-GAAP income from operations, non-GAAP diluted earnings per share,and non-GAAP net income and non-GAAP diluted earnings per share guidance exclude acquisition related amortization, acquisition related costs, acquisition related stock compensation costs,restructuring costs and other income or charges that management does not consider to be directly related to the Company’s core operating performance, such as supplier warranty settlement, loss on partial settlement of pension plans and the tax impact of such adjustments.  Non-GAAP diluted earnings per share is calculated by dividing non-GAAP net income by GAAP weighted average shares outstanding (diluted). Non-GAAP operating income margin is calculated by dividing Non-GAAP income from operations by GAAP Net Sales.

Non-GAAP adjusted EBITDA and Non-GAAP adjusted EBITDA guidance

Adjusted EBITDA represents earnings before interest, taxes, depreciation, acquisition related amortization, acquisition related costs, restructuring costs, stock-based compensation, supplier warranty settlement and other income or charges that management does not consider to be directly related to the Company’s core operating performance, such as asset impairment and other, net, and loss on partial settlement of pension plans.

Non-GAAP Free cash flow

Non-GAAP free cash flow is calculated by deducting purchases of property, plant and equipment from net cash flows from operating activities.

Non-GAAP operating working capital

Non-GAAP operating working capital is calculated by deducting accounts payable from net trade receivables plus inventories.

Net Debt

Net debt is calculated by subtracting cash from total debt.

Forward-Looking Statements

All statements, other than statements of historical fact included in this release are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Forward-looking statements can generally be identified by phrases such as “believes,” “expects,” “potential,” “continues,” “may,” “should,” “seeks,” “predicts,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “could,” “designed”, “should be,” and other similar expressions that denote expectations of future or conditional events rather than statements of fact. Forward-looking statements also may relate to strategies, plans and objectives for, and potential results of, future operations, financial results, financial condition, business prospects, growth strategy and liquidity, and are based upon financial data, market assumptions and management's current business plans and beliefs or current estimates of future results or trends available only as of the time the statements are made, which may become out of date or incomplete. Forward looking statements are inherently uncertain, and investors must recognize that events could differ significantly from our expectations. These statements include, but may not be limited to, the statements under “Business Outlook,” our expectations regarding exceeding anticipated synergy targets, our expectations regarding achieving strategic supply chain initiatives, our expectations regarding the weakness in the global industrial economy continuing in the foreseeable future and anticipations regarding the length and scope of such downturn, as well as our belief that we are taking the necessary actions to manage near-term dynamics, our expectations regarding our tax rate, our expectations regarding delevering our business and

our ability to continuedelevering our business, including by generating strong free cash flow, our expectations regarding our margin improvement by the end of 2020,changes in how we calculate certain non-GAAP measures, andthe Company’s revised guidance for full year 2019.

In addition to the risks and uncertainties noted in this release, there are certain factors that could cause actual results to differ materially from those anticipated by some of the statements made. These include: (1) competitive pressures, (2) changes in political and economic conditions in the United States and abroad and the cyclical nature of our markets, (3) loss of distributors, (4) the ability to develop new products and respond to customer needs, (5) risks associated with international operations, including currency risks, and the effects of tariffs and other trade actions taken by the United States and other countries (6) accuracy of estimated forecasts of OEM customers and the impact of the current global economic environment on our customers, (7) risks associated with a disruption to our supply chain, (8) fluctuations in the costs of raw materials used in our products, (9) product liability claims, (10) work stoppages and other labor issues, (11) changes in employment, environmental, tax and other laws and changes in the enforcement of laws, (12) loss of key management and other personnel, (13) risks associated with compliance with environmental laws, (14) the ability to successfully execute, manage and integrate key acquisitions and mergers, (15) failure to obtain or protect intellectual property rights, (16) risks associated with impairment of goodwill or intangibles assets, (17) failure of operating equipment or information technology infrastructure, (18) risks associated with our debt leverage, (19) risks associated with restrictions contained in the agreements governing the Notes and the Altra Credit Facilities, (20) risks associated with compliance with tax laws, (21) risks associated with the global recession and volatility and disruption in the global financial markets, (22) risks associated with implementation of our ERP system, (23) risks associated with the Svendborg, Stromag, and A&S acquisitions and integration and other acquisitions, (24) risks associated with certain minimum purchase agreements we have with suppliers, (25) risks related to our relationships with strategic partners, (26) our ability to offset increased commodity and labor costs with increased prices, (27) risks associated with our exposure to variable interest rates and foreign currency exchange rates, (28) risks associated with interest rate swap contracts, (29) risks associated with our exposure to renewable energy markets, (30) risks related to regulations regarding conflict minerals, (31) risks related to restructuring and plant consolidations, (32) risks related to our acquisition of A&S, including (a) the possibility that we may be unable to achieve expected synergies and operating efficiencies in connection with the proposed transaction within the expected time-frames or at all and to successfully integrate A&S, (b) expected or targeted future financial and operating performance and results, (c) operating costs, customer loss and business disruption (including, without limitation, difficulties in maintain relationships with employees, customers, clients or suppliers) being greater than expected following the transaction, (d) our ability to retain key executives and employees, (e) slowdowns or downturns in economic conditions generally and in the markets in which the A&S businesses participate specifically, (f) lower than expected investments and capital expenditures in equipment that utilizes components produced by us or A&S, (g) lower than expected demand for our or A&S’s repair and replacement businesses, (h) our ability to successfully integrate the merged assets and the associated technology and achieve operational efficiencies, (i) the integration of A&S being more difficult, time-consuming or costly than expected, (j) the inability to undertake certain corporate actions that otherwise could be advantageous to comply with certain tax covenants, (k) potential unknown liabilities and unforeseen expenses related to the acquisition and (l) the impact on our internal controls and compliance with the regulatory requirements under the Sarbanes-Oxley Act of 2002, (33) the risk associated with the UK vote to leave the European Union, (34) Altra’s ability to achieve the efficiencies, savings and other benefits anticipated from its cost reduction, margin improvement, restructuring, plant consolidation and other business optimization initiatives, (35) the risks associated with transitioning from

LIBOR to a replacement alternative reference rate, and (36) other risks, uncertainties and other factors described in the Company's quarterly reports on Form 10-Q and annual reports on Form 10-K and in the Company's other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Except as required by applicable law, Altra does not intend to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

AIMC-E

CONTACT:

Altra Industrial Motion Corp.

Christian Storch, Chief Financial Officer

781-917-0541

christian.storch@altramotion.com

EX-99.2

Second-Quarter 2019 Results July 25, 2019 A Premier Industrial Company Altra Motion Second-Quarter 2019 Results July 25, 2019 Exhibit 99.2

Q2 2019 Conference Call Details Live Webcast July 25, 2019 10:00 AM ET Dial-In Number 866-209-9085 Domestic 647-689-5687 International Webcast at www.altramotion.com Replay Through August 8th (800) 585-8367 Domestic (416) 621-4642 International Conference ID: 4918987 Webcast Replay at www.altramotion.com Q2 2019 Conference Call Details Live Webcast July 25, 2019 10:00 AM ET Dial-In Number 866-209-9085 Domestic 647-689-5687 International Webcast at www.altramotion.com Replay Through August 8th (800) 585-8367 Domestic (416) 621-4642 International Conference ID: 4918987 Webcast Replay at www.altramotion.com Altra Motion 2

Safe Harbor Statement Forward-Looking Statements All statements, other than statements of historical fact included in this release are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Forward-looking statements can generally be identified by phrases such as “believes,” “expects,” “potential,” “continues,” “may,” “should,” “seeks,” “predicts,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “could,” “designed”, “should be,” and other similar expressions that denote expectations of future or conditional events rather than statements of fact. Forward-looking statements also may relate to strategies, plans and objectives for, and potential results of, future operations, financial results, financial condition, business prospects, growth strategy and liquidity, and are based upon financial data, market assumptions and management's current business plans and beliefs or current estimates of future results or trends available only as of the time the statements are made, which may become out of date or incomplete. Forward looking statements are inherently uncertain, and investors must recognize that events could differ significantly from our expectations. These statements include, but may not be limited to, the statements under “Business Outlook,” our expectations regarding exceeding anticipated synergy targets, our expectations regarding achieving strategic supply chain initiatives, our expectations regarding the weakness in the global industrial economy continuing in the foreseeable future and anticipations regarding the length and scope of such downturn, as well as our belief that we are taking the necessary actions to manage near-term dynamics, our expectations regarding our tax rate, our expectations regarding delevering our business and our ability to continue delevering our business, including by generating strong free cash flow, our expectations regarding our margin improvement by the end of 2020, changes in how we calculate certain non-GAAP measures, and the Company’s revised guidance for full year 2019. In addition to the risks and uncertainties noted in this release, there are certain factors that could cause actual results to differ materially from those anticipated by some of the statements made. These include: (1) competitive pressures, (2) changes in political and economic conditions in the United States and abroad and the cyclical nature of our markets, (3) loss of distributors, (4) the ability to develop new products and respond to customer needs, (5) risks associated with international operations, including currency risks, and the effects of tariffs and other trade actions taken by the United States and other countries (6) accuracy of estimated forecasts of OEM customers and the impact of the current global economic environment on our customers, (7) risks associated with a disruption to our supply chain, (8) fluctuations in the costs of raw materials used in our products, (9) product liability claims, (10) work stoppages and other labor issues, (11) changes in employment, environmental, tax and other laws and changes in the enforcement of laws, (12) loss of key management and other personnel, (13) risks associated with compliance with environmental laws, (14) the ability to successfully execute, manage and integrate key acquisitions and mergers, (15) failure to obtain or protect intellectual property rights, (16) risks associated with impairment of goodwill or intangibles assets, (17) failure of operating equipment or information technology infrastructure, (18) risks associated with our debt leverage, (19) risks associated with restrictions contained in the agreements governing the Notes and the Altra Credit Facilities, (20) risks associated with compliance with tax laws, (21) risks associated with the global recession and volatility and disruption in the global financial markets, (22) risks associated with implementation of our ERP system, (23) risks associated with the Svendborg, Stromag, and A&S acquisitions and integration and other acquisitions, (24) risks associated with certain minimum purchase agreements we have with suppliers, (25) risks related to our relationships with strategic partners, (26) our ability to offset increased commodity and labor costs with increased prices, (27) risks associated with our exposure to variable interest rates and foreign currency exchange rates, (28) risks associated with interest rate swap contracts, (29) risks associated with our exposure to renewable energy markets, (30) risks related to regulations regarding conflict minerals, (31) risks related to restructuring and plant consolidations, (32) risks related to our acquisition of A&S, including (a) the possibility that we may be unable to achieve expected synergies and operating efficiencies in connection with the proposed transaction within the expected time-frames or at all and to successfully integrate A&S, (b) expected or targeted future financial and operating performance and results, (c) operating costs, customer loss and business disruption (including, without limitation, difficulties in maintain relationships with employees, customers, clients or suppliers) being greater than expected following the transaction, (d) our ability to retain key executives and employees, (e) slowdowns or downturns in economic conditions generally and in the markets in which the A&S businesses participate specifically, (f) lower than expected investments and capital expenditures in equipment that utilizes components produced by us or A&S, (g) lower than expected demand for our or A&S’s repair and replacement businesses, (h) our ability to successfully integrate the merged assets and the associated technology and achieve operational efficiencies, (i) the integration of A&S being more difficult, time-consuming or costly than expected, (j) the inability to undertake certain corporate actions that otherwise could be advantageous to comply with certain tax covenants, (k) potential unknown liabilities and unforeseen expenses related to the acquisition and (l) the impact on our internal controls and compliance with the regulatory requirements under the Sarbanes-Oxley Act of 2002, (33) the risk associated with the UK vote to leave the European Union, (34) Altra’s ability to achieve the efficiencies, savings and other benefits anticipated from its cost reduction, margin improvement, restructuring, plant consolidation and other business optimization initiatives, (35) the risks associated with transitioning from LIBOR to a replacement alternative reference rate, and (36) other risks, uncertainties and other factors described in the Company's quarterly reports on Form 10-Q and annual reports on Form 10-K and in the Company's other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Except as required by applicable law, Altra does not intend to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. Safe Harbor Statement Forward-Looking Statements All statements, other than statements of historical fact included in this release are forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Forward-looking statements can generally be identified by phrases such as “believes,” “expects,” “potential,” “continues,” “may,” “should,” “seeks,” “predicts,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “could,” “designed”, “should be,” and other similar expressions that denote expectations of future or conditional events rather than statements of fact. Forward-looking statements also may relate to strategies, plans and objectives for, and potential results of, future operations, financial results, financial condition, business prospects, growth strategy and liquidity, and are based upon financial data, market assumptions and management's current business plans and beliefs or current estimates of future results or trends available only as of the time the statements are made, which may become out of date or incomplete. Forward looking statements are inherently uncertain, and investors must recognize that events could differ significantly from our expectations. These statements include, but may not be limited to, the statements under “Business Outlook,” our expectations regarding exceeding anticipated synergy targets, our expectations regarding achieving strategic supply chain initiatives, our expectations regarding the weakness in the global industrial economy continuing in the foreseeable future and anticipations regarding the length and scope of such downturn, as well as our belief that we are taking the necessary actions to manage near-term dynamics, our expectations regarding our tax rate, our expectations regarding delevering our business and our ability to continue delevering our business, including by generating strong free cash flow, our expectations regarding our margin improvement by the end of 2020, changes in how we calculate certain non-GAAP measures, and the Company’s revised guidance for full year 2019. In addition to the risks and uncertainties noted in this release, there are certain factors that could cause actual results to differ materially from those anticipated by some of the statements made. These include: (1) competitive pressures, (2) changes in political and economic conditions in the United States and abroad and the cyclical nature of our markets, (3) loss of distributors, (4) the ability to develop new products and respond to customer needs, (5) risks associated with international operations, including currency risks, and the effects of tariffs and other trade actions taken by the United States and other countries (6) accuracy of estimated forecasts of OEM customers and the impact of the current global economic environment on our customers, (7) risks associated with a disruption to our supply chain, (8) fluctuations in the costs of raw materials used in our products, (9) product liability claims, (10) work stoppages and other labor issues, (11) changes in employment, environmental, tax and other laws and changes in the enforcement of laws, (12) loss of key management and other personnel, (13) risks associated with compliance with environmental laws, (14) the ability to successfully execute, manage and integrate key acquisitions and mergers, (15) failure to obtain or protect intellectual property rights, (16) risks associated with impairment of goodwill or intangibles assets, (17) failure of operating equipment or information technology infrastructure, (18) risks associated with our debt leverage, (19) risks associated with restrictions contained in the agreements governing the Notes and the Altra Credit Facilities, (20) risks associated with compliance with tax laws, (21) risks associated with the global recession and volatility and disruption in the global financial markets, (22) risks associated with implementation of our ERP system, (23) risks associated with the Svendborg, Stromag, and A&S acquisitions and integration and other acquisitions, (24) risks associated with certain minimum purchase agreements we have with suppliers, (25) risks related to our relationships with strategic partners, (26) our ability to offset increased commodity and labor costs with increased prices, (27) risks associated with our exposure to variable interest rates and foreign currency exchange rates, (28) risks associated with interest rate swap contracts, (29) risks associated with our exposure to renewable energy markets, (30) risks related to regulations regarding conflict minerals, (31) risks related to restructuring and plant consolidations, (32) risks related to our acquisition of A&S, including (a) the possibility that we may be unable to achieve expected synergies and operating efficiencies in connection with the proposed transaction within the expected time-frames or at all and to successfully integrate A&S, (b) expected or targeted future financial and operating performance and results, (c) operating costs, customer loss and business disruption (including, without limitation, difficulties in maintain relationships with employees, customers, clients or suppliers) being greater than expected following the transaction, (d) our ability to retain key executives and employees, (e) slowdowns or downturns in economic conditions generally and in the markets in which the A&S businesses participate specifically, (f) lower than expected investments and capital expenditures in equipment that utilizes components produced by us or A&S, (g) lower than expected demand for our or A&S’s repair and replacement businesses, (h) our ability to successfully integrate the merged assets and the associated technology and achieve operational efficiencies, (i) the integration of A&S being more difficult, time-consuming or costly than expected, (j) the inability to undertake certain corporate actions that otherwise could be advantageous to comply with certain tax covenants, (k) potential unknown liabilities and unforeseen expenses related to the acquisition and (l) the impact on our internal controls and compliance with the regulatory requirements under the Sarbanes-Oxley Act of 2002, (33) the risk associated with the UK vote to leave the European Union, (34) Altra’s ability to achieve the efficiencies, savings and other benefits anticipated from its cost reduction, margin improvement, restructuring, plant consolidation and other business optimization initiatives, (35) the risks associated with transitioning from LIBOR to a replacement alternative reference rate, and (36) other risks, uncertainties and other factors described in the Company's quarterly reports on Form 10-Q and annual reports on Form 10-K and in the Company's other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Except as required by applicable law, Altra does not intend to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. Altra Motion 3

Agenda and Speakers Executive Overview Market Review Strategic Highlights Q2 Financial Review & 2019 Guidance Strategic Priorities Q&A Carl Christenson Chairman & Chief Executive Officer Christian Storch Vice President & Chief Financial Officer Agenda and Speakers 1. Executive Overview 2. Market Review 3. Strategic Highlights 4. Q2 Financial Review & 2019 Guidance 5. Strategic Priorities 6 Q&A Carl Christenson Chairman & Chief Executive Officer Christian Storch Vice President & Chief Financial Officer Altra Motion 4

Q2 Executive Overview 97% increase in net sales to $466.5 million. Sales were down 2.7% on a pro forma basis due to weaker industrial conditions in China & Europe and select North American end markets. Earnings of $0.45 per diluted share, versus $0.65 per diluted share, in Q2 2018. Non-GAAP Earnings of $0.71 per diluted share versus $0.78 per diluted share, in Q2 2018. * Expect top-line stabilization over the remainder of 2019. Q2 sales reflect benefits of A&S combination, partially offset by mixed market conditions 36% Q2 ‘19 GAAP Gross Margin 17% Q2 ‘19 Non-GAAP Operating Margin* 21% Q2 ‘19 Non-GAAP adjusted EBITDA Margin* *See appendix for discussion and reconciliation of non-GAAP measures Q2 Executive Overview Q2 sales reflect benefits of A&S combination, partially offset by mixed market conditions • 97% increase in net sales to $466.5 million. • Sales were down 2.7% on a pro forma basis due to weaker industrial conditions in China & Europe and select North American end markets. • Earnings of $0.45 per diluted share, versus $0.65 per diluted share, in Q2 2018. Non-GAAP Earnings of $0.71 per diluted share versus $0.78 per diluted share, in Q2 2018. * • Expect top-line stabilization over the remainder of 2019. 36% Q2 ‘19 GAAP Gross Margin 17% Q2 ‘19 Non-GAAP Operating Margin* 21% Q2 ‘19 Non-GAAP adjusted EBITDA Margin* *See appendix for discussion and reconciliation of non-GAAP measures Altra Motion 5

Q2 2019 Key End-Market Drivers Transportation sales down meaningfully Factory Automation & Specialty Machinery down; demand recovery delayed Metals down single digits due to slowing in automotive Distribution sales down due to tough comps and market softness Turf & garden down single digits; Ag down double digits Energy market up low double digits on strong Renewables, partially offset by decline in Oil & Gas Medical Equipment Market strong momentum, up low double digits Mining up high single digits on aftermarket and moderate capex spending Defense up significantly on broad-based demand Q2 2019 Key End-Market Drivers • Transportation sales down meaningfully • Factory Automation & Specialty Machinery down; demand recovery delayed • Metals down single digits due to slowing in automotive • Distribution sales down due to tough comps and market softness • Turf & garden down single digits; Ag down double digits • Energy market up low double digits on strong Renewables, partially offset by decline in Oil & Gas • Medical Equipment Market strong momentum, up low double digits • Mining up high single digits on aftermarket and moderate capex spending Defense up significantly on broad-based demand Altra Motion 6

Q2 2019 Strategic Highlights Focus on cash management yielded $47M Free Cash Flow in Q2 * Advanced goal of de-levering balance sheet Paid down $35 million of debt in Q2 Key strategic A&S integration activities on schedule Strong momentum with sales team collaboration Facility closures/consolidations on track Strategic supply chain initiative exceeding expectations Integrating ABS best practices across the organization On track to achieve target debt paydown and exceed $10m to $12m of synergies in 2019 Strong momentum advancing our strategic priorities *See appendix for discussion and reconciliation of non-GAAP measures Q2 2019 Strategic Highlights Strong momentum advancing our strategic priorities • Focus on cash management yielded $47M Free Cash Flow in Q2 * • Advanced goal of de-levering balance sheet • Paid down $35 million of debt in Q2 • Key strategic A&S integration activities on schedule • Strong momentum with sales team collaboration • Facility closures/consolidations on track • Strategic supply chain initiative exceeding expectations • Integrating ABS best practices across the organization On track to achieve target debt paydown and exceed $10m to $12m of synergies in 2019 *See appendix for discussion and reconciliation of non-GAAP measures Altra Motion 7

Q2 2019 Financial Highlights YOY Q2 2019 Q2 2018** Sales 97% $466.5 $237.3 Organic Growth * (2.7%) FX (260 bps) GAAP Diluted EPS 31% $0.45 $0.65 Non-GAAP Diluted EPS* 9% $0.71 $0.78 Non-GAAP Income from Operations * 390 bps 16.9% 13.0% GAAP Gross Profit 280 bps 35.8% 33.0% Non-GAAP Adjusted EBITDA Margin* 380 bps 20.5% 16.7% *See appendix for discussion and reconciliation of non-GAAP measures **2018 Q2 results do not include A&S business Q2 2019 Financial Highlights YOY Q2 2019 Q2 2018** Sales 97% $466.5 $237.3 Organic Growth * (2.7%) FX (260 bps) GAAP Diluted EPS 31% $0.45 $0.65 Non-GAAP Diluted EPS* 9% $0.71 $0.78 Non-GAAP Income from Operations * 390 bps 16.9% 13.0% GAAP Gross Profit 280 bps 35.8% 33.0% Non-GAAP Adjusted EBITDA Margin* 380 bps 20.5% 16.7% *See appendix for discussion and reconciliation of non-GAAP measures **2018 Q2 results do not include A&S business Altra Motion 8

Balance Sheet Highlights Paid down $50 million of debt YTD Returned $22 million to shareholders YTD via dividend No share re-purchases in 1H 2019 Paying down debt and de-levering balance sheet are top priorities *See appendix for discussion and reconciliation of non-GAAP measures Balance Sheet Highlights Paying down debt and de-levering balance sheet are top priorities Balance Sheet Highlights (amounts in Millions) Cash $153.6 $169.0 $1,685.7 $1,734.0 $1,532.1 44.8% $1,565.0 45.9% Total Debt* Net Debt Q2 2019 Q4 2018 Shareholder’s Equity Shareholder’s Equity Plan Debt, less Cash Shares Outstanding $1,884.4 55.2% $1,848.2 54.1% $3,416.5 100.0% $3,413.2 100.0% 64.3 64.2 Paid down $50 million of debt YTD Returned $22 million to shareholders YTD via dividend No share re-purchases in 1H 2019 *See appendix for discussion and reconciliation of non-GAAP measures Altra Motion 9

Revising 2019 Guidance CURRENT PRIOR Sales $1,850 to $1,880 million $1,920 to $1,950 million GAAP Diluted EPS $1.81 to $1.95 $2.10 to $2.18 Non-GAAP Diluted EPS* $2.81 to $2.97 $3.02 to $3.18 Non-GAAP Adjusted EBITDA* $385 to $400 million $415 to $430 million Capital Expenditures $50 to $55 million $60 to $65 million Depreciation and Amortization $128 to $135 million $130 to $140 million Tax Rate (before discrete items) 23.5% to 25.0% 24.0% to 25.8% *See appendix for discussion and reconciliation of non-GAAP measures Revising 2019 Guidance CURRENT PRIOR Sales $1,850 to $1,880 million $1,920 to $1,950 million GAAP Diluted EPS $1.81 to $1.95 $2.10 to $2.18 Non-GAAP Diluted EPS* $2.81 to $2.97 $3.02 to $3.18 Non-GAAP Adjusted EBITDA* $385 to $400 million $415 to $430 million Capital Expenditures $50 to $55 million $60 to $65 million Depreciation and Amortization $128 to $135 million $130 to $140 million Tax Rate (before discrete items) 23.5% to 25.0% 24.0% to 25.8% *See appendix for discussion and reconciliation of non-GAAP measures Altra Motion 10

Strategic Priorities to Drive Shareholder Value Capitalize on the Opportunity to Drive Substantial Value Creation Execute on the A&S integration; deliver $52 million synergies De-lever and strengthen the balance sheet through strong free cash flow generation Deliver on 425 basis point improvement in Non-GAAP Adjusted EBITDA margin by the end of 2022 Strategic Priorities to Drive Shareholder Value • Execute on the A&S integration; deliver $52 million synergies • De-lever and strengthen the balance sheet through strong free cash flow generation • Deliver on 425 basis point improvement in Non-GAAP Adjusted EBITDA margin by the end of 2022Capitalize on the Opportunity to Drive Substantial Value Creation Altra Motion 11

*Discussion of Non-GAAP Measures The non-GAAP financial measures used in this release are utilized by management in comparing our operating performance on a consistent basis. We believe that these financial measures are appropriate to enhance the overall understanding of our underlying operating performance trends compared to historical and prospective periods and our peers. We believe that these measures provide important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations as well as insight into the compliance with our debt covenants. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to our GAAP results has been provided in the financial tables included in this press release.   Organic Sales Organic sales in this release excludes the impact of foreign currency translation.    Non-GAAP Net Income, Non-GAAP income from operations, Non-GAAP Diluted earnings per share, Non-GAAP operating income margin, and Non-GAAP Net Income and Non-GAAP Diluted EPS Guidance Non-GAAP net income, non-GAAP income from operations, non-GAAP diluted earnings per share, and non-GAAP net income and non-GAAP diluted earnings per share guidance exclude acquisition related amortization, acquisition related costs, acquisition related stock compensation costs, restructuring costs and other income or charges that management does not consider to be directly related to the Company’s core operating performance, such as supplier warranty settlement, loss on partial settlement of pension plans and the tax impact of such adjustments. Non-GAAP diluted earnings per share is calculated by dividing non-GAAP net income by GAAP weighted average shares outstanding (diluted). Non-GAAP operating income margin is calculated by dividing Non-GAAP income from operations by GAAP Net Sales.   Non-GAAP adjusted EBITDA and Non-GAAP adjusted EBITDA guidance Adjusted EBITDA represents earnings before interest, taxes, depreciation, acquisition related amortization, acquisition related costs, restructuring costs, stock-based compensation, supplier warranty settlement and other income or charges that management does not consider to be directly related to the Company’s core operating performance, such as asset impairment and other, net, and loss on partial settlement of pension plans.   Non-GAAP Free cash flow Non-GAAP free cash flow is calculated by deducting purchases of property, plant and equipment from net cash flows from operating activities.   Non-GAAP operating working capital Non-GAAP operating working capital is calculated by deducting accounts payable from net trade receivables plus inventories.   Net Debt Net debt is calculated by subtracting cash from total debt. *Discussion of Non-GAAP Measures The non-GAAP financial measures used in this release are utilized by management in comparing our operating performance on a consistent basis. We believe that these financial measures are appropriate to enhance the overall understanding of our underlying operating performance trends compared to historical and prospective periods and our peers. We believe that these measures provide important supplemental information to management and investors regarding financial and business trends relating to the Company's financial condition and results of operations as well as insight into the compliance with our debt covenants. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to our GAAP results has been provided in the financial tables included in this press release. Organic Sales Organic sales in this release excludes the impact of foreign currency translation. Non-GAAP Net Income, Non-GAAP income from operations, Non-GAAP Diluted earnings per share, Non-GAAP operating income margin, and Non-GAAP Net Income and Non-GAAP Diluted EPS Guidance Non-GAAP net income, non-GAAP income from operations, non-GAAP diluted earnings per share, and non-GAAP net income and non-GAAP diluted earnings per share guidance exclude acquisition related amortization, acquisition related costs, acquisition related stock compensation costs, restructuring costs and other income or charges that management does not consider to be directly related to the Company’s core operating performance, such as supplier warranty settlement, loss on partial settlement of pension plans and the tax impact of such adjustments. Non-GAAP diluted earnings per share is calculated by dividing non-GAAP net income by GAAP weighted average shares outstanding (diluted). Non-GAAP operating income margin is calculated by dividing Non-GAAP income from operations by GAAP Net Sales. Non-GAAP adjusted EBITDA and Non-GAAP adjusted EBITDA guidance Adjusted EBITDA represents earnings before interest, taxes, depreciation, acquisition related amortization, acquisition related costs, restructuring costs, stock-based compensation, supplier warranty settlement and other income or charges that management does not consider to be directly related to the Company’s core operating performance, such as asset impairment and other, net, and loss on partial settlement of pension plans. Non-GAAP Free cash flow Non-GAAP free cash flow is calculated by deducting purchases of property, plant and equipment from net cash flows from operating activities. Non-GAAP operating working capital Non-GAAP operating working capital is calculated by deducting accounts payable from net trade receivables plus inventories. Net Debt Net debt is calculated by subtracting cash from total debt. Altra Motion 12

Appendix Non-GAAP Measures *  Non-GAAP Net home (amounts in millions) Q2 2019 Q2 2018 Net income $29.0 $19.0 Restructuring costs 3.2 06 Supplier warranty settlement – (2.0) Acquisition related stock compensation expense 0.8 – Acquisition related expenses 02 1.8 Acquisition related amortization expense 17.6 2.4 Tax Impact of above adjustments (5.2) 0.8 Non-GAAP net income* 45.6 22.6 Non-GAAP diluted earnings per share* $ 0.71 (1) $ 0.78 (2) (1) Tax impact is calculated by multiplying the estimated effective tax rate, 23.9% by the above items (2) tax impact is calculated by multiplying the estimated effective tax rate for the period of 24.5% by restructuring costs and acquisition related amortization expense. Acquisition related expenses in the quarter are not tax deductible, therefore the tax impact has been eliminated. The supplier warranty settlement in come is not taxable in the local jurisdiction; therefore, no taxi impact has been assumed. Non-GAAP Income from operations (amounts in millions) Q2 2019 Q 2018 Income from operations $ 57.1 $ 28.0 Restructuring costs 3.2 0.6 Supplier warranty settlement – (2.0) Acquisition related stock compensation expense 0.8 – Acquisition related amortization expense 17.6 2.4 Acquisition related expense 0.2 1.8 Non-GAAP income from operations* $ 78.9 $ 30.8 Free Cash Flow (amounts in millions) Q2 2019 Q2 2018 Operating Cash Flow $56.8 $25.4 Less Capex (10.1) (7.9) Free Cash Flow $46.7 $17.5 Non-GAAP Operating Working Capital (amounts in millions) Q2 2019 Q2 2018 Accounts Receivable $269.6 $146.4 Inventories 237.5 149.6 Accounts Payable (156.5) (62.9) Operating Working Capital $350.6 $233.1 NET Debt (amounts in millions) As of June 30, 2019 Total Debt $1,685.7 Cash ($153.6) Net Debt $1,532.1 Altra Motion 13

Appendix Non-GAAP Measures * Appendix non-gaap measures * non-gaap income from Operatings by segment (amounts in millions) Quarter ended June 30,2019 power automation transmission and technologies specialty corporate total income from operations $30.1 $30.4 $(3.4) $57.1 restructuring costs 1.8 1.4 – 3.2 acquisition related stock compensation expense - - 0.8 0.8 Acquisition related expenses - - 0.2 0.2 acquisition related amortization expense 2.3 15.3 – 17.6 non- gaap income from operations * $ 34.2 $ 47.1 $ (2.4) $ 78.9 income from operations as a percent of Segment net sales 14.6% 20.2% 16.9%  Reconciliation of GAAP to Non-GAAP Operating Margin (amount in millions) Quarter ended June 30, 2019 GAAP Operating Income Adjustments Non-GAAP Operating Income Net sales $466.5 $ – $ 466.5 Cost of sales 299.5 – 299.5 Gross Profit 167.0 – 167.0 Operating expenses Selling, general and administrative expenses 92.0 18.6 73.4 Research and development expenses 14.7 – 14.7 Restructuring costs 3.2 3.2 – Income from operations $ 57.1 $ 21.8 $ 78.9 GAAP and non-GAAP Income from operations as a percent of net sales *Reconciliation of 2019 Non-GAAP Net Income Guidance and Diluted EPS Guidance (Amounts in millions except per share information Fiscal Year 2019 Fiscal Year 2019 Diluted earing per share Net Income per Share Diluted $116.8-$125.8 $1.81-$1.95 Restructuring and consolidation costs 12.0 Acquisition related stock compensation expense 3.1 Acquisition amortization expense 70.0 Tax impact of above adjustments** (21.5)-(20.2) Non-GAAP Net Income $181.2-$191.5 $2.81-$2.97 ** Tax impact calculated by multiplying the effective tax rate for the period of 23.5%-25.0% by the above items.*Reconciliation of 2019 Non-GAAP Adjusted EBITDA Guidance (Amount in millions) Fiscal Year 2019 Net income $119.8-$125.8 Interest Expense 76.0-75.0 Tax Expense 39.5-39.0 Depreciation expense 57.7-65.0 Amortization Expense 70.0 Stock Based Compensation 13.0-13.2 Restructuring and consolidation costs 12.0 Non-GAAP Adjusted EBITDA $385.0-$400.0  Altra Motion 14

Appendix Non-GAAP Adjusted EBITDA Reconciliation * * Based upon management's estimate of A&S's financial results for the third quarter of 2018. A&S's actual historical results have not yet been subject to an audit and cannot be verified at this point in time.  Moreover, the non-GAAP adjusted EBITDA of A&S for the third quarter of 2018 cannot be reconciled to the corresponding audited GAAP measure because no such measure is available to management. Nonetheless, management believes that an estimate of A&S’s Non-GAAP adjusted EBITDA is important to the Company's investors because it provides an estimated indication of the Company's potential ability to service debt and incur additional leverage, if any. Appendix Non-GAAP Adjusted EBITDA Reconciliation * Q3 2018 Q4 2018 Q1 2019 Q2 2019 LTM Net Income $12.3($4.9) $35.2 29.0 $71.6 Asset Impairment and other, net 0.2 (0.2) 1.3 (0.3) 1.0 Taxes 5.8 (0.6) 10.3 9.1 24.6 Interest Expense, net 2.0 22.7 19.8 18.6 63.1 Depreciation Expense 6.9 14.1 14.3 14.6 49.9 Amortization expenses 2.4 17.9 17.8 17.6 55.7 Loss on write off of deferred financing costs – 1.2 - - 1.2 Acquisition related expenses 43.6 24.3 0.5 0.2 29.6 Stock Compensation Expense 1.1 4.3 3.5 3.5 12.4 Amortization of fair value of inventory – 14.2 - - 14.2 Restricting costs 0.6 2.3 2.3 3.2 3.2 8.4 Non-Gaap adjusted ebitda $35.9 $95.3 $105.0 $95.5 $331.7 Estimated A&S non-gaap Adjusted ebitda* $58.8 Proforma combined non-Gaap adjusted ebitda * Based upon management's estimate of A&S's financial results for the third quarter of 2018. A&S's actual historical results have not yet been subject to an audit and cannot be verified at this point in time. Moreover, the non-GAAP adjusted EBITDA of A&S for the third quarter of 2018 cannot be reconciled to the corresponding audited GAAP measure because no such measure is available to management. Nonetheless, management believes that an estimate of A&S’s Non-GAAP adjusted EBITDA is important to the Company's investors because it provides an estimated indication of the Company's potential ability to service debt and incur additional leverage, if any. Altra Motion 15