Contribution margin increased to $11.6 million from $7.8 million in fourth quarter 2011. This increase can be attributed to a record margin in the west Texas wholesale business, the contribution beginning on November 7, 2012 from contracts associated with services provided to Delek US' refineries, and fees generated by the Paline Pipeline, which was acquired in December 2011.
Retail segment contribution margin was $8.7 million in the fourth quarter 2012. This compares with fourth quarter 2011 results of $8.5 million, which included a goodwill impairment charge of $2.2 million. Merchandising margin increased to 29.6% in fourth quarter 2012, up from 29.2% in the same prior year period. This increase partially offset a decline in fuel margin to 13.8 cents per gallon in fourth quarter 2012 from 14.6 cents per gallon in the prior year period.
Initiatives to improve our store portfolio, such as reimaging and building new stores, adding food offerings and increasing private label products, continued to be successful. These initiatives have benefited same store merchandising sales trends, which increased 0.8% in fourth quarter 2012 from the same prior year period.At the conclusion of the fourth quarter 2012, the retail segment operated 373 locations, versus 377 locations at the end of the fourth quarter 2011. Fourth Quarter and Full-Year 2012 Results | Conference Call Information The Company will hold a conference call to discuss its fourth quarter and full-year 2012 results on March 7, 2013 at 10:00 a.m. Central Time. Investors will have the opportunity to listen to the conference call live over the Internet by going to www.DelekUS.com and clicking on the Investor Relations tab, at least 15 minutes early to register, download and install any necessary software. For those who cannot listen to the live broadcast, a telephonic replay will be available through June 7, 2013 by dialing (855) 859-2056, passcode 97891632. An archived version of the replay will also be available at www.DelekUS.com for 90 days. About Delek US Holdings, Inc. Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics and convenience store retailing. The refining segment consists of refineries operated in Tyler, Texas and El Dorado, Arkansas with a combined nameplate production capacity of 140,000 barrels per day. Subsidiaries of Delek US Holdings, Inc. also own 62.4 percent (including the 2 percent general partner interest) of Delek Logistics Partners, LP. Delek Logistics Partners, LP (NYSE: DKL) is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. The retail segment markets fuel and merchandise through a network of approximately 373 company-operated convenience store locations operated under the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food and Fuel™, Favorite Markets®, Delta Express® and Discount Food Mart™ brand names.
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